June Edition of Veda Insights

Time marches on and we are now nearly mid way through the calendar year. Our thoughts & best wishes are with our business colleagues in the Canterbury region as they continue to grabble with the effects of the earthquake & aftershocks.

Nationwide the economy is still sluggish with consumer confidence very patchy. This is reflected in retail sales and other key indicators such as the housing market. It is hoped that as we lead up to the Rugby World Cup we will see the economy respond to some positive activity.

There has been considerable media recently about proposed changes to the Credit Reporting Code. The Office of the Privacy Commissioner (OPC) is proposing some significant changes. One of these is a move to positive data credit reporting. The additional data fields credit reporters will be able to collect under the OPC proposal are:

• Account type
• Amount of credit extended
• Date opened
• Date closed
• 24 months payment history

The Privacy Commissioner proposed start date for the collection of this data is 1 April 2012. Those who will be able to access this information will be those who contribute the data which is similar to our Comprehensive Positive Trade Bureau.

A reciprocal user group will sign up to a code of conduct which will cover areas such as data standards. The reality is that the current bureau offering that we have will be what the bulk of our customers will continue to use in the future.

We will continue to invest in this service to bring you new and enhanced products and ways of accessing our products. Some of the enhancements are discussed in this issue of Veda Insights. Happy reading and remember a sale isn't a sale until the money is the bank - check that your customers are good for the deal.

Best Wishes,

John Roberts
Managing Director - New Zealand & International
Veda

The Code Amendment #5 Report

The Privacy Commissioner has released a draft Amendment 5 to the Credit Reporting Code 2004 which, if finally approved by her, will introduce comprehensive reporting (CR ) to New Zealand. The Amendment adds a fifth 'positive' data field to credit reports. This is repayment history.

B2B Channel Upgrades for VedaLink and VedaXML

Veda has now completed the upgrade on Commercial Reports for Vedalink & VedaXML. New services have been created to bring these channels in line with the recently enhanced Commercial web reports. Technical specifications will be available from the 24th June 2011.

Quotations to become new class of credit inquiry

The proposed Amendment 5 to the Credit Reporting Privacy Code 2004 seeks to add in 'quotations' to credit information. If implemented then the efficacy of this concept will rely on whether credit providers can and do consistently differentiate between 'quotations' and other kinds of credit enquiry.

New Terms and Conditions for Subscribers

As of 1 October 2011, changes to the Privacy Act 2004 will come in to effect, and Veda Subscribers will need to re-sign the terms and conditions of the subscriber agreement with Veda.

Veda aims to help 50,00 businesses in NZ

During the first two weeks of June, Veda will be embarking on a Roadshow with Microsoft, Vero, EC Credit, MYOB and the National Bank, presenting to Business Advisors who are the backbone of support for NZ small & medium businesses.

More about Code Amendment #5: Credit Freezing

Credit freezing is for individuals who suspect they may be a victim of fraud, have lost or had stolen important identity documentation. They have the option of alerting credit reporters to prevent their credit history from being accessed by a fraudster attempting to obtain credit in their name.

Commercial Enhancements for Web Reports

Veda is pleased to announce that we have completed the upgrade on Commercial Reports through the subscriber portal, and we're working hard in the background to enhance these services for you. These enhancements will go live 25th June 2011, and all Commercial reports will now require the user to enter an Account Type and in most circumstances and Inquiry Amount. 

New credit reporting concepts: a non-compliance action

While Amendment 5 to the Credit Reporting Privacy Code 2004 introduces further comprehensive reporting reforms it also introduces new concepts to New Zealand's credit reporting code.

Can you prove a negative?

Amendments to the Credit Reporting Privacy Code 2004 change the definitions of a default and a guarantor's default. Not only that, the definitions have been broadened and require anyone loading a default to prove that the creditor can actually, in law, take proceedings against the defaulter.