In Support to Comprehensive Credit Reporting ACCC Released a Proposal
A proposal has been released by Australian Competition and Consumer Commission, so as to support comprehensive credit reporting. This will be a helping hand for the lenders to take better decisions on lending and will also enhance competition.
Before March 2014, the credit report of Aussies contain the collection of negative data only such as credit defaults, as per the government norms. But after the reforms to the privacy act in March 2014, the credit report starting including detailed information, that include positive data like account repayment history, that has to be shown to the lenders.
Now, in this release ACCC proposed, to grant authorisation for five years to the Australian Retail Credit Association (ARCA) in relation to principles for exchanging comprehensive consumer credit data between signatory credit reporting bodies and lenders. ARCA represents lenders and credit reporting bodies in Australia.
The ACCC’s acting chair Delia Rickard says,”The regulator has received a large number of submissions from the industry in response to the application for authorisation, with general support for the application which will help lenders make better lending decisions”.
According to her “Better consumer credit information will allow lenders to make better credit decisions, with resulting benefits for consumers in the form of more competition among lenders and greater financial inclusion for consumers as well as less over-indebtedness”.
The introduction of comprehensive credit reporting was recommended in David Murray’s Financial System Inquiry (FSI).
News Source: http://www.brokernews.com.au/news/breaking-news/accc-proposal-to-facilitate-comprehensive-credit-reporting-203193.aspx