Following on from the change to credit reporting last year, another bank has announced it will be fully compliant with CCR.
Comprehensive Credit Reporting (CCR) came into effect last July and the major banks had until the end of September to comply.
Under the new rules banks will have to share extra credit information to assess the borrower’s ability to repay loans. Previously, only negative information, such as missed payments, was recorded.
MyState Bank have now announced they will have 100% of its positive consumer credit data ready for reporting under the CCR obligations.
The group said it will now be in a better position to match customers with the right type of product for their credit situation.
CCR is seen as an important tool for consumers to take control of their credit reputation. It will also allow banks and other licensed credit providers to access a more holistic picture of a consumer’s credit profile, enabling them to make more informed and responsible lending decisions.
CCR has been partially mandatory for the major banks, who are required to share 50% of customer data with credit reporting bureaus, rising to 100% by September this year.
Managing director and CEO Melos Sulicich said future MyState customers are the biggest beneficiaries from the bank’s move to a more robust, transparent and fairer reporting of credit.
“Overall, customers can expect a more accurate credit score reflective of their actual behaviour,” Sulicich said.
“For instance, if a customer has missed one or two payments in a long credit history they are unlikely to be unnecessarily penalised.
“For MyState Bank, the onboarding of CCR puts us in the best possible position to ensure we are aligning our products with the best interests of customers, based on their personal credit-related behaviour.”