Credit check reforms in Australia
New Credit check reforms and credit file reporting reforms in Australia.
Changes to the Privacy Act in Australia which relate to credit reporting come into effect soon.
In fact the changes are in effect now but the actual results will not be seen on credit files until March 2014.
This includes whether you have made or missed a consumer credit payment. That means any late payment on a line of credit and some other types of consumer bills and it may be recorded on your Veda credit file.
This new type of information is called ‘repayment history information’ or RHI and is part of the new credit check reforms.
What is repayment history information?
Essentially this is data or details gathered and loaded onto your credit file regarding whether you have met your payment dates on time and adhered to your consumer credit repayment obligations.
Currently your credit file does not tell credit providers if you were approved or declined on any of your applications which appear on your credit history. That will change with credit check reforms and the new format will show which applications were approved and which lines of credit are currently open.
RHI will also include information regarding late payments or made payments on time.
It is important to note that if you only make a partial payment on a consumer bills, it is deemed that you have missed a payment!
The details which may be loaded onto your credit report may include the day on which the payment fell due, if you made a late payment and the date on which you paid. So in effect this new information can include both positive and negative information about your credit history on your Veda credit file.
It will not include the amount of any missed payment, but simply the fact that you have made or missed a payment.
RHI can include information about any consumer credit payments that you make, or fail to make, to a credit provider only if that credit provider has a current Australian Credit Licence.
This information should start to appear on Veda credit files around March 2014, but when that date starts it will actually include payment history going back to December 2012. So the credit providers can actually look back to your payment history as far as December 2012 and start reporting that history as of around 2014 onwards. Sort of back dating for lack of a better description.
From March 2014, credit reporting bodies such as Veda Advantage will be able to supply your repayment history , along with other credit-related personal information, to licenced credit providers who subscribe to a credit reporting agency.
Those credit providers will then use this information to gauge the level of risk they perceive you to be when it comes to providing a line of credit or finance for you.
This means that if you fail to pay certain consumer credit bills on time or in full after December 2012 it may adversely affect your ability to obtain credit in the future.
It is also important to note that this Information about any particular payment cannot be held by the credit reporting agency for more than two years from the date it fell due. This is quite clear under the new credit check reforms.
When a credit provider collects your RHI it should notify you of certain matters, including the name and contact details of any credit reporting body to whom it is likely to disclose the information.
How can I find out what Repayment History is held about me?
When your repayment history is loaded onto your Veda credit file you will be able to access this information any time you wish.
You may obtain a free copy by supplying all required information to Veda and waiting the around a couple of weeks or, you may wish to obtain a paid copy almost immediately online.
How fast can I get a review of my credit file?
The online assessment service application form on this page is not free because you are paying for the service of a professional to review your credit file and then provide detailed advice and opinions. The cost of obtaining a full assessment of your Veda file on this link will be $62.70 AUD gst inclusive and is normally sent within the hour during business hours. After hours requests may sometimes take a little longer. A free copy of the Veda file we access is then sent to all customers who purchase this initial “assessment service”.