Credit reporting systems change

The Australian Retail Credit Association Ltd (ARCA) has been authorised by the ACCC to exchange comprehensive consumer credit data between signatory credit reporting bodies and lenders.

 

The five year authorisation follows reforms to the Privacy Act which expand the type of consumer credit information that can now be shared.

 

ARCA represents lenders and credit reporting bodies in Australia.

 

“Access to more consumer credit information will allow lenders to make better credit decisions, with resulting benefits for consumers in the form of greater financial inclusion for consumers and assisting to reduce consumer over-indebtedness,” ACCC Deputy Chair Delia Rickard said.

 

“This will lead to increased competition between credit reporting bodies and between lenders, and assist lenders to comply with their responsible lending obligations at less cost.”

 

“Each credit provider will make a commercial decision whether or not to provide data and consume data from multiple credit reporting bodies.”

 

“ARCA is working to resolve the issues around reporting of financial hardship arrangements, and will need to involve industry and relevant regulators.”

 

More information about the application for authorisation is available at Australian Retail Credit Association Ltd Authorisation.

 

3 December 2015.