More about Code Amendment #5: credit freezing

Credit freezing is designed to prevent access to a credit file for a limited period to prevent fraud.

The idea behind credit freezing is for those 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.  It is a good notion modeled on provisions available in countries such as the United Kingdom.

But do the detailed provisions in the draft amendment do justice to the concept?  You be the judge.

The processes are outlined in the amendment and include the following excerpt:

Victims of fraud may request suppression of credit information

(1) Where a credit reporter holds credit information about an individual, the individual concerned is entitled to make an initial request to the credit reporter seeking a suppression of that information from disclosure for the purpose of credit reporting on the basis that the individual believes that he or she has been, or is likely to be, a victim of fraud (including identity fraud). (2) Where a credit reporter receives an initial request, the credit reporter must suppress the individual's credit information for 10 working days from the day on which the request is received and notify the individual of:

(a) the suppression and its duration; and
(b) the process to make an extension request ...

(3) Where an individual has obtained a suppression under any of the provisions of this clause, that individual is entitled to make an extension request to the credit reporter seeking an extension of the suppression.

(4) Where a credit reporter receives an extension request, the credit reporter must, as soon as reasonably practicable, decide whether to extend the suppression and, if so, determine what period it considers is reasonable in the circumstances to extend the suppression.

(5) Where a credit reporter receives an extension request, the credit reporter must:

(a) pending taking a decision on the request - continue to suppress the individual's credit information;and
(b) once it has taken a decision on the request - notify the individual of that decision.

(6) A credit reporter may refuse an extension request if it believes on reasonable grounds that the individual has not been, or is not likely to be, a victim of fraud.

(7) Where a credit reporter refuses an extension request, the credit reporter must include in its notification of decision (a) the reasons for that refusal; and (b) details of the complaints procedure available ...

(8) Where a credit reporter receives an initial request from an individual in respect of whom the credit reporter has previously received an initial request, the credit reporter may treat the request as an extension request.

(9) Where a credit reporter has suppressed credit information about an individual, the individual concerned is entitled to make a release request to the credit reporter authorising the disclosure of that information to a particular subscriber for the purpose of a particular credit transaction.

(10) Where a credit reporter receives a release request, the credit reporter must, as soon as reasonably practicable, notify the individual of its decision on the request.

(11) A credit reporter must make available on the credit reporter's website details of the credit reporter's processes to make an initial request, an extension request and a release request.

Veda's submission will detail how we believe this provision can be refined and improved.  Let us know what  you think. Submissions close in less than a fortnight.

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