From 1 April 2012 important amendments to the Credit Reporting Privacy Code came into force.
Among other changes, these will permit credit reporters to receive from and provide to participating credit providers, comprehensive credit reporting data. This wider range of data will enable credit providers to make more informed credit decisions and by so doing enable them to pass on the benefit to qualifying borrowers in the form of credit availability and/or cost of credit.
The changes will not happen overnight. They are likely to be adopted progressively as credit providers make the changes needed to implement a fuller reporting regime and advise their customers of these. One key requirement for this to be achieved was for data standards to be established and agreed by industry participants. These express the provisions of the credit reporting privacy code in terms that are uniform, relate to the language of business systems and will allow correct data to be reported in a consistent manner.
During 2012 RCANZ members invested time and resources in the development of a workable set of standards. A copy of the data standards agreement may be viewed under the Resources tab.
A second key requirement was for principles of reciprocity to be agreed among those able to participate in comprehensive reporting. These are intended to define the rules by which participation takes place. A Heads of Agreement document including the Principles of Reciprocity was ratified by members in March 2013 and may be viewed under the Resources tab. The concept behind reciprocity is that only those who contribute comprehensive data to credit reporters will be able to access this data.
Comprehensive credit reporting allows credit providers to supply and credit reporters to collect details of the amount of credit extended to an individual and a 24 month repayment history. A number of other important changes were also introduced by the amendment to the Credit Reporting Privacy Code
More detailed information on the changes is available here.