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Millions of Aussies at risk of credit default

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Australian Broker | 01 Oct 2014, 08:24 AM Agree 0
​New data reveals that 13% of Australians are at risk of a credit default in the next year, which could impact on their capacity to get a loan
  • John C | 01 Oct 2014, 09:56 AM Agree 0
    Yes what about where there is an innocent oversight and the alleged debt is paid yet the infringement remains on the credit file for five years. This oversight does not reflect in anyway the creditworthiness of the victim in respect of their other arrangements yet they are punished for this one error. This is where the system is wrong. Only a Court of Law has the right to dish out a punishment, not the Credit Reporting Agency or their subscriber who publishes it! No one should have this power to destroy peoples financial lives for five years over a $150 oversight! This onerous convict mentality legislation needs to be changed. This is not positive credit reporting. This is bastardy!
  • Old Broker | 01 Oct 2014, 10:59 AM Agree 0
    In the UK if you pay your council rates late or even your TV tax you are listed on the credit file. Also any utility bill that is paid late can also be roped into the web. Veda needs to increase its fees and this is another way that they will get members to take out more access and peep into borrowers lives. Where is the privacy commission on all of this and also why does 1 company have so much access and control surely this is anti competitive?
  • Country Broker | 01 Oct 2014, 11:34 AM Agree 0
    Is this an effort by VEDA to raise revenue by charging people to access their file .

    The government were very lax in allowing a change in the reporting , for me any utility bill that is under 1,000 or Telco that is under 1500 can NEVER be reported , I have seen many instances where the companies actually threaten to ;place a default on file " ,. The whole system Is BROKEN and needs the Federal Minister for consumer affairs to intervene and fix it , To say 2,000,000 plus people could be effected is a red flag for the federal government. The MFAA and FBAA also need to look after their members interests and lobby hard for reform in the credit reporting industry. Veda and Dunn and Bradstreet have too much power , and it could tell in the long run when credit approval slow down.
  • John C | 01 Oct 2014, 12:39 PM Agree 0
    Old Broker, it more than that. It is about CONTROL! Control the masses so you can't move without the Government and Big Business (Brother) saying you can. Remember the APP which replaced the NPP was legislation brought in by the former Federal Government to exercise control over all Australians. The NPP was not broken and the current Government hasn't the balls to repeal it! The best we got was the AG George Brandis amending the Seven day period to Fourteen days... Big Bloody Deal!! Nothing wrong with the 61 days we had before. Even with 14 days you will have far more credit infringements listed which will take scores & thousands of people out of the finance market for five years. The lenders won't be doing any business in this country after twelve months and we will not have a finance industry if we are not judicious in our handling of this. You will never get this changed unless at Government level and the major political parties are not interested. This particular issue is on the agenda of the as a major policy change to ensure that the system is fair and encourages positive credit behaviour. The current legislation does not! The current legislation is convict mentality!

    This not only applies to Veda, you have Dunn & Bradstreet, Esperion and the crowd out of Tasmania. That's another story, you can be listed on one CRA with an infringement and not on the others. Very soon you will be CRA Shopping only using lenders that use the CRA that does not carry an infringement! The whole system is flawed!
  • Taz | 05 Oct 2014, 08:11 AM Agree 0
    I worked for a company that used the services of Veda but all applications for credit were looked at on their own merits and even if you had defaulted on a payment it didn't necessarily mean you wouldn't be granted credit. It's only if you've defaulted a lot or a lot recently or if you've taken out a lot of loans in recent times that we would be hesitant to grant credit. I know Veda have a scoring system that makes it more objective and less grey for some companies granting credit as they'll largely automate their system to approve or reject, but at the end of the day companies in the line of business of granting credit want the business and will typically ere on the side of granting credit so I wouldn't worry too much.

    Oh and this study was just a nice piece of publicity for Veda - no doubt about that.
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