Aussies facing credit blacklist could rise 'exponentially'

by AB12 Mar 2014
The number of Aussies blacklisted by credit reporting bodies will increase exponentially after Friday, due to changes to the Privacy Act allowing credit bodies to share data on borrowers among themselves, according to a national finance company.

From Friday, under the Privacy Amendment Act 2012 (Part IIIA), credit reporting bodies can disclose a borrower’s repayment history information (RHI), along with other credit-related personal information, to licensed credit providers.

Since December 2012 everyone’s RHI started being recorded in full.

Safe Financial managing director Rafer Hart said this means that anyone who has failed to make a payment on time since December 2012 could be blacklisted.

“Repayment history information shows your repayment behaviour including late repayments or missed payments,” he said.

“Something as little as one late repayment could now have far worse consequences for Australians who may face being blacklisted from Friday onwards.

“This alarming new amendment is going to hit Aussies hardest when they’re ready to apply for a car or home loan and learn that they’ve got defaults against their name.”

Having your credit file blacklisted through one simple error can place a borrower’s life and financial position in limbo, Hart said.

“From 14 March, there will be far more people seeking out alternatives to credit cards and bank loans and looking for more compassionate financing options.”

Safe Financial is a national finance company offering home loans, car loans, and business finance solutions. Hart said the company will be taking a “more understanding approach” and will give borrowers who have been restricted by the new regulations a second chance.


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  • by Aarong 12/03/2014 9:37:52 AM

    Aren't we all glad we've copied the systems from failing economies when we had one of he best ones in the world? Than you very much Labour for once again instituting a policy that is going to damage the Australian public. Just like the NCCP, what problem is this solving? This is a cure when there was no disease. Now we get to see this dragged throughout he courts as previous privacy policies didn't mention the back dating of information. This obviously reeks of a retroactive law and although I'm not a lawyer, I'm pretty sure just about any of them could make the argument that this is a punitive law (that allowed for this) without the benefit of warning. Telling the public last month that your credit records for the past 2 years will now retroactively be uploaded doesn't count as fair disclosure. I'm sure the insurance companies love this. So what? Since when do we tread on Australians civil liberties just to make insurance companies happy? Despite most of their ideas being bad for business to begin with, Labour showed a real ineptitude and juvenile approach to implementing their own regulation happy/anti-business bad policies. Thanks for nothing.

  • by Mander 12/03/2014 10:12:31 AM

    Australia has until now been one of the few advanced economies without a positive reporting regime. Personally I believe that borrowers with a good credit history will benefit and those with an adverse credit history will not - what could be fairer than that?
    There is no such thing as a "blacklist". The Veda report simply contains information. Each lender makes its own decisions on adverse credit according to their own risk appetite. Plenty of lenders will approve a borrower with missed payments or adverse credit.
    As far as Aarong's objections are concerned, how can they say that this law is punitive and that the public has not had fair warning? It has been publicised for months/years in the press and on TV.
    In fact, borrowers with a good credit history will benefit with faster approvals and possibly lower pricing over time. Not only that, lenders are better able to determine whether a borrower is overcommitting themselves because details of current credit contracts will be available.

  • by Bottom Line 12/03/2014 10:39:23 AM

    As the Privacy advocates group voiced yesterday - there is nothing good in this for the consumer.
    within 12 months banks will start with individual pricing for those who may have now get recorded for being 5 days late.
    It will be called 'pricing for risk'; and the mechanics of how they will adopt it, have already been discussed.