MyCRA Specialist Credit Repair Lawyers

Tag: Credit Reporting Code of Conduct

Credit reporting and the year ahead

Some significant changes will be appearing this year due to Australia’s credit reporting legislation overhaul in March. These changes could impact all Australians, and especially those involved in the credit industry…Find out the 5 significant changes we’ll be watching in 2014, and decide what action you need to take for your business or for your own finances.

By Graham Doessel, Non-Legal Director MyCRA Lawyers

Are you ready for the year ahead in credit reporting?

Below is my guest post in The Adviser this week ‘Credit reporting and the year ahead‘ .

In this post, I discuss the 5 big changes we’ll be watching closely in 2014.

Credit reporting and the year ahead (The Adviser)

13 January 2014 | Graham Doessel

2014 will bring some heavy changes to Australian credit reporting following the implementation of the Privacy Act 1988 (Cth) Amendments in March.

What are the 5 big changes that we’ll be watching closely this year which could impact all involved in the credit industry?

1. Repayment History Information (and specifically ‘late payment’ notations).

The introduction of repayment history information (RHI) to Australian credit reports means there is going to much more data available to lenders in which to make their serviceability calculations from.

One of the pieces of credit reporting data which could be a deal breaker for many prospective borrowers – is any late payment notations. Separate from defaults, a consumer’s RHI will show any late payments made on licenced credit – e.g. loans and credit cards and the date the payments were made.

That information has been collected from December 2012 – but largely consumers are unaware of this important change. From March this year, it will show up on consumer credit reports across the country – and it will be interesting to see how many people have these new notations against their names.

It remains to be seen how lenders will treat this information (as all serviceability calculations are so subjective), and precisely how the information will impact credit worthiness.

We don’t know yet how many days late will be too late, and we won’t know this information until a new Credit Reporting Code of Conduct is registered. It has been proposed a repayment more than 5 days late will see you with one of these notations against your name.

Another uncertainty is how many will be too many and mean the lender’s computer says ‘no’ or the lender’s computer says ‘yes’ but at a higher interest rate.

2. New obligations on credit reporting bureaus

With the registration of a new Credit Reporting Code of Conduct (CR Code), will be a new requirement on credit reporting bureaus such as Veda, Dun & Bradstreet, Tasmanian Collection Services and new entrant Experian, to audit the compliance of credit providers.

The new CR Code requires CRB’s to monitor credit providers, and to determine those that pose the greatest risk of non-compliance with their core obligations under the Privacy Act. The Code determines these “at risk” credit providers would be subject to audits.

We will be interested to see precisely how this obligation is metered out to credit reporting bureaus, and whether an independent overseer will be appointed to ensure objectivity. We hope this change will improve the accountability of credit providers. We also hope it will solidify the two entities as being ‘separate.’ We have found in the past during credit disputes, a client-type relationship tends to exist between agency and credit provider, at the exclusion of consumers.

Further to this, it was proposed in the draft Code of Conduct, that CRB’s should also publish on their website an annual report by 30 June each year outlining information relating to credit report correction. The information would relate to the number of correction requests received, the number of successful correction requests, and the number of complaints received.

This information has previously never been supplied to the Australian public from our credit reporting agencies (because there has never been a requirement to). If implemented as part of the new CR Code, this information will give Australia a much more accurate picture of the depth of credit reporting issues as they exist.

3. The ‘open’ credit score

Currently, Australia’s largest credit reporting agency, Veda is offering consumers the opportunity to purchase their ‘Veda score’ so they can see the number that lenders have been able to see when requesting credit information from Veda.

With the Privacy changes will bring an obligation on those agencies providing a credit score, to provide information on how it is calculated. Veda has made moves to do this already.

In addition to Veda, U.S. giant ‘FICO’ has said it would also like to offer open credit scoring to the Australian public.

FICO currently offers its data analytics services and credit scoring to lenders for internal use in Australia, and has been doing so for many years. It is reportedly used in 90% of consumer lending decisions in the U.S.

So if it does provide an alternative to Veda’s “VedaScore” it will be interesting to see the differences in the scores, and which one is more accurate reflection of lender serviceability calculations.

4. “Improved” ability to correct consumer credit reports

Creditors can and do make mistakes when placing listings on credit files, and the onus is on the consumer (or someone acting on their behalf) to identify and address those inconsistencies.

But up till now, it has very much been a case of David and Goliath – with some consumers finding they are lumbered with listings that just shouldn’t be there due to not having the extensive skills and knowledge required to address their complaints in the appropriate way.

The new laws around complaints correction have promised to streamline the correction and complaints process for credit reporting as well as force the credit provider to justify credit listings and actually substantiate the information it reports on credit files.

These are significant changes which we look forward to putting into practice on behalf of the many clients we act on behalf of in credit dispute cases.

5. New powers for the Privacy Commissioner

New Privacy Laws provide that civil penalties can be issued by the Privacy Commissioner for a breach of certain provisions of the Privacy Act, and including the Credit Reporting Code of Conduct. They can also be imposed for serious or repeated breaches. These can be up to $220,000 for an individual or $1.1 million for an organisation.

Finally there is some real incentive for credit providers to take due care with adding listings to credit files. The Privacy Commissioner has said he will not be taking a soft approach when it comes to breaches of the Privacy Act, and we will be watching with interest to see if this also applies with the same gusto to credit reporting breaches covered under this legislation.

All in all, this year could bring some really positive changes to Australia’s credit system, but with it will be some teething problems resulting in confusion for some consumers. If nothing else, there’s going to be some really interesting times in credit reporting, and in finance in the months ahead.

________________________________________________________________

Graham Doessel is the Non-Legal Director of MyCRA Lawyers.

MyCRA Lawyers advocates for individuals in matters of credit file dispute.

An early pioneer in credit repair, over recent years Graham has become a frequent consumer spokesperson for issues impacting credit reporting, and is the Secretary and Spokesperson of the Credit Repair Industry Association of Australasia (CRIAA).

Graham also founded and is the Non-Legal Director of Armstrong Doessel Stevenson Lawyers.

21/01/2014
Access to credit will fall with introduction of new credit reporting data – and it’s being collected now

Press Release

Access to credit will fall with introduction of new credit reporting data – and it’s being collected now.

27 June 2013

Credit numbers are expected to decline when more data is reported about Australian credit habits in March next year, and a consumer advocate for accurate credit reporting warns, some simple mistakes may mean it is your credit worthiness on the line.

CEO of MyCRA Credit Rating Repair, Graham Doessel says this is an important time to know about Australia’s credit laws, and to be careful with how you use and repay credit.

“Australian consumers are currently under the microscope with their repayments, and if they are more than five days late with their repayments to licenced Credit Providers, that is going on their credit record now for two years and will show up as of March next year,” Mr Doessel advises.

“In my opinion, this is going to trip up many Australians. With only a 5 day grace period proposed, it may mean many Australians are unnecessarily banned from credit due to simple billing mistakes, lost paperwork and other payment mishaps,” he says.

The prediction of reduced credit numbers has been echoed by Dun & Bradstreet CEO, Steve Brown at a recent Australian Banking and Finance Conference.

Publication Banking Day reported Mr Brown as telling the conference that a contraction in consumer credit will take place following the introduction of comprehensive reporting in March.

“Lenders will start to learn things about consumers that they did not know before, such as the number of late payments they make,” Brown says.

And so say Citigroup.

“Citigroup Australia’s country risk director for consumer, CLN Murthy, agreed that there would be a tendency to reduce credit limits after comprehensive credit reporting came in,” Banking Day reports.

Repayment information will be part of five new data sets to show up on your credit report as part of wide-sweeping amendments to Australia’s Privacy Act, which includes a new Credit Reporting Code of Conduct.

“Prospective lenders will be privy to your repayment habits – and the word is out that more and more information may be on the table going forward,” Mr Doessel warns.

Banking Day recently reported that Mr Brown and others in the consumer finance industry will be pushing for even more data to be included in the future.

“Brown said Dun & Bradstreet would like to see the inclusion of account balance data in credit files,” Banking Day reports.

The long term plans with respect to repayment history information is to be able to offset good repayment history against a default listing. The conference predicted that products and pricing structures could be developed for these borrowers.

In the meantime, Mr Doessel says there are some simple things credit-active Australians can do to make sure their credit-worthiness remains in-tact:

1. Pay on time, every time. Pay within five days of your bill’s due date to avoid a late payment notation. It doesn’t have to be a big amount to impact you. Too many late payment notations will probably mean you’re refused credit, or offered only a high interest rate.

2. If you can’t pay, actively seek help. There are new laws to help prevent you from being defaulted if you are under financial hardship, provided you get in early with your Credit Provider. So there is a new incentive to get in and work it out prior to letting your accounts go into arrears and copping a default listing.

3. Seek cautions credit limits. If you’re not using it, don’t have it is the general adage. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit, but ask for an amount closer to what you intend to use.

4. Consider identity theft risks. Understand how lucrative your personal information is and take steps to keep abreast of how it can be at risk. New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft. Acting quickly may prevent credit file misuse.

5. Check your credit file regularly. With the new information available, it will be more important than ever to check your credit file. Many people don’t know you can do this for free annually through the Australia’s credit reporting agencies and a copy is sent within 10 working days.

6. Correct credit information which you believe is inaccurate, inconsistent or unfair. To offset the new information, new laws will make it fairer for those disadvantaged individuals to access and correct their credit report.

But Mr Doessel says there will still be a requirement to work within and have knowledge of credit reporting law when disputing an inaccurate or unfair credit listing.

“It is important to note, that Credit Providers and Ombudsman must act impartially and cannot advocate for you,” he warns.

He says you can start by contacting your Credit Provider yourself to alter incorrect information, or you can put your case for dispute in the hands of an advocate.

“You should take steps to rectify mistakes before the information has any bearing on a credit application you may make in the future,” Mr Doessel says.

“You should take steps to rectify mistakes before the information has any bearing on a credit application you may make in the future,” Mr Doessel says.

/ENDS.

Please contact:

Graham Doessel – CEO Ph 3124 7133

Lisa Brewster – Media Relations media@mycra.com.au

Ph 07 3124 7133 www.mycra.com.auwww.mycra.com.au/blog

MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

Image: Victor Habbick/ www.FreeDigtalPhotos.net

27/06/2013
Australian credit habits under the microscope – are you ready?

Press Release

Australian credit habits under the microscope – are you ready?

10 May 2013

The credit habits of Australians will be scrutinised like never before when new credit reporting laws take effect in March next year, and a consumer advocate for accurate credit reporting warns, now is the time to make some big changes to protect your future.

CEO of MyCRA Credit Rating Repair, Graham Doessel says this is an important time to know about Australia’s credit laws, and to be careful with how you use and repay credit.

“Australian consumers are currently under the microscope with their repayments, and if they are more than five days late paying a loan or a credit card that will go on their credit file for two years and show up as of next year,” Mr Doessel advises.

“This information will be part of five new data sets to show up on your credit report – and Australians need to be credit savvy to make the changes work for them,” he says.

This new information for lenders is part of wide-sweeping amendments to Australia’s Privacy Act, which includes a new Credit Reporting Code of Conduct.

Mr Doessel outlines some things that every credit-active should know about our new laws:

What you need to know and do to be credit savvy

1. Pay on time, every time. Make repayments on accounts (such as credit cards and loans) on time to avoid having late payment notations recorded on your credit file. There is a five day grace period. It doesn’t have to be a big amount to impact you. Too many late payment notations may mean you’re refused credit, or offered a higher interest rate.

If you let your account go more than 60 days in arrears you will also be default listed. This listing will show on your credit file for five years, and applies to amounts over $150.

2. If you can’t pay, actively seek help. There will be new laws to help prevent you from being defaulted if you are under financial hardship. You need to make arrangements early with your lender, and this will be recorded on your credit file. If you make your repayments on time, you may be able to offset the variation. So there is a new incentive to get in and work it out with your lender prior to letting your accounts go into arrears and copping a default listing.

3. Take precautions when applying for credit. The volume of credit you apply for and the type of credit you apply for can hinder any future credit application you may make. Whilst it is a great idea to research credit before applying – you should only make a credit application you have full intention of pursuing. In addition, high interest’ or ‘bad credit’ loan applications may shave points off your rating.

4. Seek cautions credit limits. If you’re not using it, don’t have it is the general rule. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit, but ask for an amount closer to what you intend to use. Any credit ‘rating’ may be reduced by credit limits which are too high.

5. Prevent identity theft. Understand how lucrative your personal information can be in the wrong hands, and take steps to keep abreast of how it can be at risk from identity theft, which can lead to the stealing of credit by fraudsters accessing your credit file. Victims can end up with defaults on their credit file and blacklisted from credit for 5 years.

New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft, which can prevent fraudsters from accessing credit in your name – so if you feel you may be at risk – acting quickly may prevent your credit file from being impacted.

6. Check your credit file regularly. With the new information, it will be more important than ever to check your credit file. Many people don’t know you can do this for free annually through the Australia’s credit reporting agencies and a copy is sent within 10 working days. There will be five new data sets of information available to Credit Providers who request a copy of your credit report. These will be:

1. repayment history information;

2. the date on which a credit account was opened;

3. the date on which a credit account was closed;

4. the type of credit account opened;

5. and the current limit of each open credit account.

It is up to you to ensure your credit file reads accurately.

7. Correct credit information which you believe is inaccurate, inconsistent or unfair. To offset the new information, new laws are currently being devised to make it fairer for those disadvantaged individuals to access and correct their credit report.

But beware, there will still be a requirement to work within and have knowledge of credit reporting law when disputing an inaccurate or unfair credit listing, and it is important to note, that Credit Providers and Ombudsman cannot advocate on your behalf. You can start by contacting your Credit Provider yourself to alter incorrect information, or you can seek help from a credit repairer or lawyer. You should take steps to rectify mistakes before the information has any bearing on a credit application you may make in the future.

After March 2014, if your Credit Provider disagrees with your request to correct your credit information, you can have your dispute noted on your credit file and this would be worthwhile requesting if you believe your listing shouldn’t be there.

/ENDS.

Please contact:

Graham Doessel – CEO Ph 3124 7133

Lisa Brewster – Media Relations media@mycra.com.au

Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

Image: ddpavumba/ www.FreeDigitalPhotos.net

10/05/2013
Privacy Law reform – protecting your personal information and your credit file: Privacy Awareness Week 2013

Identity theft is an ever-growing threat to Australians and the commodity which is traded, sought after and misused for criminal or financial gain by fraudsters is your personal information. In amendments to the Privacy Act 1988 (Cth) which occurred late last year and which will be implemented in March 2014, there will be some improvements in Privacy Law to do with requirements on organisations to keep your personal information safe. As identity theft can also go so far as to impact on your credit file, there are also improvements suggested within the Draft Credit Reporting Code of Conduct, aimed at protecting you and your credit file against identity theft. We look at these changes and the impact they may have on you.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au

Personal Information in the Australian Privacy Principles

We look at the differences in the areas of requirements by organisations in regards to personal information collection and security of personal information, as provided by the OAIC, which are set out in new Australian Privacy Principles, set to replace the current National Privacy Principles.

Security of Personal Information

APP 11 requires an organisation to take reasonable steps to protect the personal information it holds from interference, in addition to misuse and loss, and unauthorised access, modification and disclosure (as required by NPP 4.1).

APP 11.1 imposes the same obligation as [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][current] NPP 4 in relation to the protection of the personal information that an organisation holds. However, APP 11.1 now also requires organisations to protect personal information from interference.

APP 11.2 introduces new exceptions to the requirement that an organisation take reasonable steps to destroy or de-identify personal information, once it is no longer needed for any purpose for which it may be used or disclosed in accordance with the APPs: – if it is not contained in a Commonwealth record (APP 11.2(c))[6], and – if the organisation is not required by or under an Australian law, or a court/tribunal order, to retain the information (APP 11.2(d)).[7]

Sensitive information

Summary of [current] NPP 10 An organisation must not collect an individual’s sensitive information unless a listed exception applies (NPP 10.1). Sensitive information is defined in s 6.

NPP 10.2 and 10.3 set out specific exceptions regarding the collection of health information.

Relevant APPs

APP 3 – collection of solicited personal information

Key differences

APP 3 clarifies that an organisation must only collect sensitive information about an individual if the individual consents to the collection and the information is reasonably necessary for the organisation’s functions or activities, or an exception applies (APP 3.3).

The definition of sensitive information in s 6 has been extended to include: -biometric information that is to be used for the purpose of automated biometric verification or biometric identification or biometric templates.[14]

Sensitive information may also be collected about an individual: -if required or authorised by or under an Australian law or a court/tribunal order (APP 3.4(a))[15] when a permitted general situation or permitted health situation applies (APP 3.4(b)-(c), s 16A).

Permitted general situations include the collection of sensitive information where: -the entity reasonably believes that the collection is necessary to lessen or prevent a serious threat to the life, health or safety of any individual or to public health or safety, and it is unreasonable or impracticable to obtain the individual’s consent to the collection (APP 3.4(b), permitted general situation 1 (s 16A item 1)).

This exception reflects the wording of NPP 10.1(c), but removes the requirement that the threat must be imminent. This exception also replaces the specific circumstances set out in NPP 10.1(c) in which an individual may be unable to consent, with the more general ‘unreasonable or impracticable’.

-the entity has reason to suspect that unlawful activity, or misconduct of a serious nature, that relates to the entity’s functions or activities has been, is being or may be engaged in, and the entity reasonably believes that the collection is necessary for the entity to take appropriate action in relation to the matter (APP 3.4(b), permitted general situation 2 (s 16A item 2)).

This is a new exception in relation to the collection of sensitive information.

the entity reasonably believes that the collection is reasonably necessary to assist any APP entity, body or person to locate a person who has been reported as missing (APP 3.4(b), permitted general situation 3 (s 16A item 3)).

This is a new provision in relation to the collection of sensitive information.

The permitted health situations replicate the wording of NPP 10.2 and NPP 10.3, in relation to the collection of health information for the provision of a health service and for research.

APP 3.4(e) relates to non-profit organisations and replaces NPP 10.1(d). APP 3.4(e) permits the collection of an individual’s sensitive information by non-profit organisations where the information:

relates to the activities of the organisation, and relates solely to the members of the organisation, or to individuals who have regular contact with the organisation in connection with its activities.

The definition of ‘non-profit organisation’ is now included in s 6.[16] It states that a ‘non-profit organisation’ means an organisation that is a non-profit organisation, and engages in activities for cultural, recreational, political, religious, philosophical, professional, trade or trade union purposes. This definition replaces the terms ‘racial’ and ‘ethnic’ in the NPP 10.5 definition with the term ‘cultural’. In addition, it also includes in the definition organisations with a ‘recreational’ purpose.

Identity theft and credit file protection

The proposed new Credit Reporting Code of Conduct – currently in draft stage, has some significant new protections for victims of fraud.

The draft code sets out the opportunity for individuals who believe they may be likely to be or have been a victim of fraud, to request a ban be placed on the use or disclosure of their credit reporting information without the individual’s consent. This is intended to combat identity theft which involves the stealing of credit through impersonating the victim and taking credit out in their name.

Where a Credit Reporting Bureau (CRB) receives a request from a Credit Provider (CP) for credit reporting information about an individual in relation to whose credit reporting information a ban period is in effect, the CRB must inform the CP of the ban period and its effect.

The Code also intends to give a CRB powers in these cases to seek information relevant to the individual’s fraud allegations from a CP who may have also been affected by the alleged fraud in order to both determine whether the individual has been a victim of fraud, and to decide the length of the ban period.

Enhanced powers for the Privacy Commissioner

Whilst we are yet to have mandatory data breach notification laws, which would require individuals to be notified by an entity which holds their information of a data breach (currently it is just encouraged that this occurs), there are some areas where the Privacy Commissioner’s powers will be strengthened.

The Privacy Commissioner will have enhanced powers, in the areas of:

• Ability to accept enforceable undertakings

• Ability to seek civil penalties in the case of serious or repeated breaches of privacy

• Ability to conduct assessments of privacy performance for both Australian government agencies and businesses.

On 28 December 2012, section 4AA of the Crimes Act 1914 was amended to increase the amount of a penalty unit from $110 to $170.

This means that, under the reforms to the Privacy Act due to commence on 12 March 2014, the maximum penalty amount for a serious or repeated interference with the privacy of an individual will be $340,000 for individuals and $1.7 million for entities.

Identity theft test.

As part of Privacy Awareness Week, you can take an online identity theft test, via the OAIC website to see how vulnerable you may be to identity theft. It examines 11 ways you could become a victim of identity theft and offers advice on ways to reduce your risk.

Image: Salvatore Vuono/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

02/05/2013
New laws to aid in correcting your credit report: Privacy Awareness Week 2013

There are a number of significant changes which will impact the correction of credit reports coming through once Privacy Act 1988 (Cth) amendments are implemented in March 2014. As part of Privacy Awareness Week 2013 and this week’s theme Privacy Law Reform, we thought it would be fitting as credit repairers to stipulate those changes that may benefit consumers in the area of disputing unfair or inconsistent credit listings. There is a whole host of new information available to Credit Providers, and with this there will be an increased obligation for Credit Providers to provide accurate, up-to-date and fair information. When correcting their credit report, obviously each consumer will need to draw on different aspects of Privacy Legislation when making their case to dispute their credit listing, and this is why full knowledge of all available privacy legislation both current and new is the key to disputing credit listings. But we look at the new Australian Privacy Principles, and how they are currently interpreted in the draft Credit Reporting Code of Conduct when it comes to access and correction of credit information.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

Australian Privacy Principles

The National Privacy Principles (NPP) has up till now been the legislation which underpins the access and correction of Australian credit reports. Come March 2014, this legislation will become the Australian Privacy Principles (APP). There have been some long awaited changes in the area of access and correction. Currently, NPP 6 covers both access and correction, and this will be split into two separate principles APP’s 12 (access) and 13 (correction) come March 2014.

Access

Access involves the request for individuals to access information a company holds about them, and it is an important part of Privacy legislation for credit repair. Having full access to your personal information allows you, for instance, to be privy to all the information a Credit Provider may hold about you and your account, including their client notes and their copies of documentation. To have this information is essential in order to go through and make your case for disputing a credit listing which you believe is inconsistent.

APP 12.4 introduces a new requirement for organisations to respond to a request for access within a reasonable period, and in the manner requested by the individual, if it is reasonable and practicable to do so. This will be of great benefit to consumers, as it stipulates the requirement for timeliness when requesting information from Credit Providers. Many of our clients, and indeed individuals have experienced a significant delay in receiving, if not outright refusal to provide such information. To have a Credit Provider not provide this information can stop a case for dispute in its tracks.

Correction

Currently, if an individual is able to establish that their personal information is not accurate, complete and up-to-date, an organisation must take reasonable steps to correct the information (NPP 6.5). If the organisation and the individual disagree about the accuracy, completeness and currency of the information, the organisation must attach a statement to the information noting this, if the individual requests it to do so (NPP 6.6).

Up till now, it has in many cases been difficult for individuals to establish that information is inaccurate, particularly when the Credit Provider disagrees with this claim. It has been up to the individual (or credit repairer) to go about proving the information is inconsistent. Many individuals have no skill set for establishing proof of inaccuracy, as it requires extensive knowledge of legislation, as well the legal knowledge to negotiate with a very experienced Credit Provider.

The Privacy Commissioner explains the finer points of new legislation to help consumers with correction in its reference material on the new Australian Privacy Principles (PDF):

APP 13 amends the requirement in NPP 6.5 for an individual to establish that their personal information is not accurate, complete and up-to-date.

Instead, if:

an organisation is satisfied that, having regard to a purpose for which the information is held, the information is inaccurate, out-of-date, incomplete or irrelevant or misleading, or

the individual to whom the personal information relates requests the organisation to correct the information

the organisation must take reasonable steps to correct the personal information to ensure that, having regard to the purpose for which it is held, it is accurate, up-to-date, complete, relevant and not misleading.

If an organisation corrects personal information about an individual that it has previously disclosed to another APP entity, the organisation must take reasonable steps to notify the other APP entity of the correction, where that notification is requested by the individual (APP 13.2).

APP 13.3 requires an organisation to provide an individual with written notice if it refuses to correct the personal information as requested by the individual. The written notice must set out:

the reason for refusal (unless this would be unreasonable)

the mechanisms available to complain about the refusal, and

any other matter prescribed by regulation.

If an organisation refuses to make a correction, and an individual requests that a statement be attached to the record stating that the information is inaccurate, out-of-date, incomplete, irrelevant or misleading, the organisation generally needs to attach this statement in a way that will make the statement apparent to users of the information (APP 13.4).

APP 13.5 introduces a new requirement for an organisation to respond to a correction request within a reasonable period. The organisation must not charge the individual for making the request, for correcting the information or for associating the statement with the personal information (APP 13.5).

So in lay-man’s terms, it will be up to the Credit Provider, if it refuses to correct the personal information requested by an individual, to provide reasons as to why it has refused to correct the credit report, and to provide direction to the consumer about how to complain if necessary. On top of this, if the Credit Provider refuses to correct a credit report, individuals may be able to request that a statement be attached to their record showing that the information is considered by them to be inconsistent.

Credit Reporting Code of Conduct

Interpretation of APP’s will be set out in a new Credit Reporting Code of Conduct. Currently this document is in draft stage. There are many significant points for correcting credit reports right through this document, but in the particular area of access, correction and complaint we have these changes:

Access

Access to information will be

-free every 12 months

-free if it relates to a CP’s decision to refuse credit The CRB’s free credit report must be as easy to find as the paid report CRB is required to give a basic explanation to the info it provides to individual on their credit report.

Correction

Can occur whether a CRB or CP is satisfied information is inconsistent, inaccurate out of date etc. Must make correction within 30 days or longer as agreed in writing by individual CRB’s or CP’s consulted by another CRB or CP about a correction requests must be responded to promptly (recommended 10 days).

Complaint

Must be acknowledged within 7 days and investigated and where necessary consultation with CP’s or CRB’s may occur. A decision must be made in 30 days or longer as agreed by individual in writing.

Integrity of Credit Reporting Information

The other significant change is in the area of auditing Credit Providers. We believe this could bring about significant positive changes within the credit reporting system. Credit reporting agencies (CRB’s) will now have the task of providing reports to the public and also to the Privacy Commissioner (who will have final say on complaints and even new powers to penalise breaches) on complaints and corrections numbers.

CRB’s will need to publish information on the number of correction requests received, the number of corrections successful and the number of complaints by each CP. This is with the aim to maintain the integrity of credit reporting information, and to promote accountability through providing transparency in relation to corrections requests and complaints. It will tip the scales in what has often been a case of David and Goliath. Audits will we hope identify those companies who experience problems with credit reporting that could disadvantage consumers, and force some companies to undertake reasonable steps to rectify identified issues.

In Privacy Awareness Week tomorrow, we look at the area of Data Security and how that may impact your business…

image: digitalart/ www.FreeDigitalPhotos.net

30/04/2013
Your credit check is soon to reveal all your bad habits: Privacy Awareness Week 2013.

Press Release

Your credit check is soon to reveal all your bad habits: Privacy Awareness Week 2013.

29 April 2013

Australians are urged to be more diligent with paying all of their bills on time, every time or face a black mark against their name as part of privacy law reforms on their way in March 2014 – and a consumer advocate for accurate credit reporting warns consumers that late payment information is being collected now.

CEO of MyCRA Credit Rating Repair, Graham Doessel says it is important for all credit active individuals to rethink their repayment habits, or potentially face a series of late payment notations which could mean they are banned from credit in the future.

“The time to change is now. Ensure that every bill is being paid on time – not two days late, or a week late – as come March next year – our history of paying bills late from December 2012 onward will show up when we apply for credit,” Mr Doessel warns.

His warning comes as part of Australia’s Privacy Awareness Week 2013 which is run from 29 April to 4 May, aimed at educating individuals and businesses on matters of privacy. 2013’s theme is Privacy Law Reform – a campaign to educate Australians about changes to the Privacy Act (1988) passed on November 29 2012, which will be implemented on March 12, 2014.

Repayment history information (RHI) is part of five new data sets which will appear on Australian credit reports, from March next year – meant to afford a more accurate picture of someone’s suitability to service a loan.

The other four data sets are: the date on which a credit account was opened; the date on which a credit account was closed; the type of credit account opened; and the current limit of each open credit account.

“I think late payments will be looked on pretty unfavourably when this information becomes available to lenders, along with other factors such as applying for too much credit; applying for credit too often; or applying for the ‘wrong’ type of credit,” Mr Doessel says.

He says it is not known how much weight repayment history will be afforded on its own, but predicts lenders will be reluctant to lend to someone who presents with too many late payments – even if there are no defaults present.

“If lenders are deciding between an application which has no late payments and one with a few scattered here and there, they’d probably choose the clear one,” he says.

Mr Doessel says when the legislation was passed in late November, many – including himself were up in arms that RHI could be included after an account was one day late.

“This didn’t allow for any wiggle room, and put those using systems like direct debits and BPay at risk if payments didn’t go through right on time,” he says.

But a draft Credit Reporting Code of Conduct which will underpin the changes to the Privacy Act now allows for a 5 day grace period before RHI is recorded.

“I am thankful that those drafting the CR Code have taken these concerns into consideration and adopted the 5 day rule for individuals – making it fairer for all,” he says.

Mr Doessel says come March 2014, it will be more important than ever for individuals to be vigilant with checking their credit file.

“With all the new information about people available to lenders, it is pretty crucial that it reads accurately. You can check your credit file at no charge annually by applying with Australia’s credit reporting agencies,” he says.

Go to http://bit.ly/My-Free-Credit-File for more help to obtain your credit report.

“Thankfully, if there are issues of inaccuracy on credit reports from March – there will be more support within the Privacy Act amendments to allow for ease of correction,” Mr Doessel says.

/ENDS.

Please contact:

Graham Doessel – CEO Ph 3124 7133

Lisa Brewster – Media Relations media@mycra.com.au

Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

Top image: FrameAngel/ www.FreeDigitalPhotos.net

29/04/2013
Privacy Awareness Week 2013 Privacy Law Reform
29 April to 4 May 2013 is Privacy Awareness Week 2013 across Australia. MyCRA Credit Rating Repair are once again proud partners of PAW, and 2013’s theme “Privacy Law Reform” is especially relevant to us as credit repairers and consumer advocates for accurate credit reporting. We are taking this week to discuss the huge changes coming our way since Australia’s Privacy Act (1988) was amended in late November 2012. We look at how individuals and businesses will be impacted by new Privacy Laws, particularly in our area of focus – credit reporting and credit law, looking towards the implementation of those laws on March 12, 2014.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

What is Privacy Awareness Week?

Privacy Awareness Week (PAW) is an initiative of the Asia Pacific Privacy Authorities forum (APPA) held every year to promote awareness of privacy issues and the importance of the protection of personal information. Activities are held across the Asia Pacific region by APPA members.

Why is MyCRA involved?

Credit reporting is governed by the Privacy Act (1988) – so privacy issues are regulated and protected by this legislation. Credit repairers must be fluent in Privacy legislation in order to help consumers with their credit disputes.

2013’s theme – Privacy Law Reform is a pertinent one for consumers. MyCRA believes that every consumer should be educated on the changes coming in for them, and they affect every credit-active individual. We want to raise awareness of how an individual’s ability to obtain credit may be impacted (for better or worse) by these laws. We also want to demonstrate the changes that are coming in the way credit reporting information is handled, and how that will also impact the individual.

What will change?

The new laws will bring about changes in three main areas. (Courtesy of OAIC).

The introduction of a unified set of Australian Privacy Principles (APPs). These principles will be introduced to replace the current National Privacy Principles for those private sector organisations covered by the Privacy Act and the Information Privacy Principles for Australian government agencies. There are a number of important changes with the introduction of the APPs, including in the areas of direct marketing, overseas disclosure of personal information and the handling of unsolicited information.

The introduction of comprehensive credit reporting. These changes are designed to provide consumer credit providers with sufficient information to adequately assess credit risk while ensuring the protection of personal information, and to support responsible lending. The system will be underpinned by a new industry-agreed Credit Reporting Code of Conduct approved by the Commissioner.

Enhanced powers for the Commissioner. These powers include enhanced powers to resolve investigations and promote privacy compliance with access to new remedy powers including enforceable undertakings and civil penalties. Also, for the first time, the Commissioner will be able to conduct Performance Assessments of private sector organisations to determine whether they are handling personal information in accordance with the new APPs, credit reporting provisions and other rules and codes. The Commissioner will be able to conduct these assessments at any time — an added incentive for organisations to ensure they are handling personal information in accordance with the Privacy Act.

Credit reporting and Privacy

Some of the areas of credit reporting which will undergo significant change will be:
- New data on Australian credit reports – including repayment history information
- Quality, security, accuracy and integrity of credit reporting information as set out in APP’s.
- Improved ability to dispute credit listings
- Ability to secure a credit file against identity crime
- Penalties for breach of Privacy Act
- A new Credit Reporting Code of Conduct – currently at Draft stage.
Stay tuned every day this week to find out more about how Australia’s credit reporting law changes may affect you, your credit file and your ability to obtain credit.

Image: Salvatore Vuono/ www.FreeDigitalPhotos.net
29/04/2013