Reforms to help prevent credit over commitment are being considered by the Australian Senate.
Customers sometimes borrow from a number of credit providers. The planned reforms will provide lenders with a more complete picture of a customer’s commitments. This extra information will then help guide responsible lending decisions.
Importantly, the proposed reforms include consumer and privacy protections on the use and disclosure of customer information credit. These protections include prohibiting the use of information by credit providers for direct marketing purposes.
A Credit Reporting Code of Conduct, to be approved by the Privacy Commissioner, will set mandatory standards for compliance, access to information, data consistency and accuracy, complaints handling and independent oversight.
Read our submission to the Senate.