The 12th of March 2014 heralds several significant changes to credit file reporting and information on your credit history.
We recognise that this may seem like a very dry subject but it is very important for you to be across these changes.
Until now, Australia’s privacy act has limited the credit reporting agencies to only providing negative information about your credit background. This includes credit defaults, bankruptcies and any credit applications that you have made. That limited level of information reporting is about to change in a significant way.
To see exactly what new information will be available on your credit background you can click the following link to a very comprehensive website:
http://creditsmart.org.au/what-has-changed#included
The main points of change are as follows:
1. Information about your monthly repayment conduct (ie paid on time) over the past two years can now be reported.
2. If you apply for credit, the decision by the credit provider can now be reported (declined or approved).
3. The current limit on all of your credit cards (and other credit facilities) can now be reported. This also means that if you get a limit increase, this can now be reported on your credit record.
4. The repayment term and repayment type on all of your credit facilities can now be reported.
5. A credit provider can now also provide an opinion that you have fraudulently attempted to get credit or fraudulently evaded your obligations to repay credit, or that you do not intend to comply with your repayment obligations.
6. Credit defaults can be lodged on any outstanding amounts over $150 if you are more than 60 days behind on your repayments.
For the majority of people, there should be great benefits associated with this new credit reporting system. The overall cost of credit fraud in Australia is quite high and this new system could go a long way toward reducing the cost of credit for all of us. Let’s hope credit providers pass on the savings….
It is also important to note that the 12th of March is only the point where the credit providers can legally start reporting this information. Most credit providers will take time to build the systems capabilities needed to take full advantage of their new found freedom.
Happy to discuss this matter further if you have any questions.
If you (or your family or friends) are currently experiencing difficulties in relation to any credit facilities, please call us. We have a range of options that may be available to you.
Michael Daniels, B.Com
Smartline Personal Mortgage Advisers
State Manager NSW & ACT
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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.