Hudson & Young

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Australia's credit reporting regime is about to change for the better

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Veda has announced proposed changes to the way our credit card history is recorded:

"Laws that restrict what can be recorded on a credit report will be eased, allowing for five new additional data sets to be included on credit reports. Comprehensive reporting is one of the recommendations made by the Australian Law Reform Commission (ALRC) as part of its review of the Privacy Act 1988. The ALRC recommended that the following data be permitted in credit information files.:

  • Type of credit account opened
  • Date on which account was opened/closed
  • Current limit on each open credit account
  • 24 months account repayment history

Together, these additional sets will create comprehensive credit reports.

The most important of these is account repayment history, which will show whether a person has been overdue or missed payments on credit obligations.

Account payment history will be the single most powerful single predictive element of a person's credit report. It's predictive power will be twice that of all the other four new elements combined."

H&Y deal with credit card default issues on a daily basis and the comment form our Director is clear:

"given the number of errors that occur in reporting now, adding further, more complex data sets can only increase the error rate. Surely the emphasis should be on accurate date first, and then expanding the data reported."

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