The Forecast - major changes to credit reporting ahead

The Privacy Commissioner has committed to major changes in signing off a series of Amendments (4 and 5) to the Credit Reporting Privacy Code.

Amendment 4

Part 1 effective 1 October 2011:

• Requires all default information to only relate to credit debts (not any other kind of debt )-this means no non-credit debt defaults may be loaded on the Bureau
• Permits the collection of driver licence numbers to enable Credit Reporters to match people's credit information more accurately
• Introduces a new "Summary of Rights" for consumers.

Part 2 effective 1 April 2012:

• Introduces new positive data fields for collection by Credit Reporters as from 1 April 2012
• Makes retention periods mandatory
• Improves audit and assurance requirements
• Permits access to Deaths Register data and Limited Partnerships Register data.

Amendment 5

Effective 1 December 2011:

• Systems testing to enable positive reporting is permitted.

Effective 1 April 2012:

• Introduces repayment history as the last of the new positive data fields for collection by Credit Reporters
• Positive data is permitted to those who may be eligible to receive such data i.e. Registered Credit Providers, Telco's and defined Utilities (for defined purposes) and Insurers underwriting or continuing to underwrite credit-related transactions. Talk to your Veda representative about whether you are eligible and what this may mean for you
• Redefines defaults for Guarantors and Debtors
• Introduces a $100 threshold for listing credit defaults (and a transition period of 6 months for debts between $50 and $100)
• Introduces the concept of Quotations (which may not be used in building credit scores)-Veda will be discussing with Credit Providers what this may mean for them
• The transition from predominantly negative to Comprehensive Reporting is provisioned for
• Enables victims of fraud to have their credit information suppressed (Credit Freezing)
• Credit Reporters may use but not disclose credit information to pre-screen Credit Providers' direct marketing lists
• More detailed obligations on credit reporters imposed to demonstrate compliance
• Introduces a new kind of data to be reported about a debtor who appears to have abandoned their obligations in respect of credit - the credit non-compliance action(CNCA) and the confirmed credit non-compliance action (CCNCA).

Veda will be discussing these reforms and their implications with customers.  Let us know if you wish to discuss any impact and need to understand how this may affect you.

The above is a snapshot of the reforms, with more detailed information available from either us or the website of the Office of the Privacy Commissioner at:

http://privacy.org.nz/credit-reporting-privacy-code/

http://privacy.org.nz/credit-reporting-privacy-code-amendment-no-5/