CCR mandatory from next year

by Miklos Bolza03 Nov 2017
The government has drawn a line in the sand for the comprehensive credit reporting (CCR) regime, with Treasurer Scott Morrison stating it will become mandatory from 1 July next year.

Currently, less than 1% of all CCR data is shared in the public realm, Morrison said in an address to the FinTech Australia Collab/Collide Summit in Melbourne yesterday (2 November).

Earlier this year, the Treasurer gave the target for credit providers to meet a threshold of 40% data reporting by the end of 2017.

“It is clear this target will not be met. This is why the Turnbull Government is taking action now to meet its commitment and provide certainty for industry and customers.”

The four major banks will be the first in line to face mandated reporting, allowing the smaller lenders time to develop their systems. The big four will be required to have 50% of their credit data ready for reporting by 1 July 2018, increasing this to 100% a year later.

The move will give lenders access to a “deeper, richer set of data,” Morrison said, which would encourage competition for SME and retail customers while improving lenders’ ability to meet responsible lending obligations.

Added transparency will also open the lending market up to new players who can undercut the major banks with lower interest rates without fear of default, he said.

“For borrowers, this regime should lead to one thing – a better deal on your mortgage, your personal loan or business loan.”

Related stories:

Is positive credit reporting a flawed deal?

Consumers oblivious to positive credit reporting

Westpac tightens up on responsible lending

COMMENTS

  • by Paul Lewis - Lighthouse Financial Services 3/11/2017 10:01:52 AM

    Are you kidding me???????? We have the WORST government I have ever known. Taking a Big Brother approach will only lead to one thing - and it's not a better deal for consumers. It will increase the cost of credit and make it incredibly difficult for people to obtain finance. Let's get real for minute - who hasn't been late on the occasional repayment or bill? Stack that up over a few years and I'll bet the vast majority of people will have 'bad credit'. Its an insane invasion of privacy and downright ridiculous. Between APRA, ASIC and this inept, useless and destructive government we are heading headlong into recession where the rest of the world moves to recovery. I have worked in the finance industry sine 1988 and I have never seen such insanity as I have witnessed over the past three years. God help us all.............