Outstanding Fines to Be Included on Credit Reports

Outstanding Ministry of Justice Fines to Be Included on Credit Reports

Media Release 5 February 2012

The country's leading credit bureau has welcomed a new law that will see unpaid fines recorded on credit reports and advises New Zealanders that over the next year they will find their credit reports hold more detail about their financial lives.

The Ministry of Justice launched an advertising campaign tonight/Sunday night to highlight that from 13 February it will release the amount of a person's overdue penalties to Veda while Veda will be permitted to provide contact details of debtors to the Ministry to use to enforce payment.

Veda Managing Director John Roberts says the provisions in the Courts and Criminal Matters Act have been a long time coming but are welcomed by the credit industry.

"What this means is that when a person applies for credit, the credit provider will not only get a credit report detailing defaults and bankruptcies but also a list of outstanding fines owed .÷to the Ministry of Justice."

Mr Roberts says, "Credit reports highlight a person's financial behaviour and ability to repay credit. If they have outstanding fines that puts a question-mark over their ability to pay off a loan and may impact on whether they can obtain credit."

The provision is the first in a range of new laws and regulations which over time will change the information that can be included on credit reports.

From 1 April credit providers will be permitted to provide positive data, such as a person's history of repaying loans, to credit reporters.

Mr Roberts says over time this will transform the information on credit reports.

"This move to comprehensive credit reporting will support responsible lending in the first instance. As the market matures the additional positive data on credit reports may help people to recover from a bad financial situation faster, widen access to quality credit and support differentiated pricing based on ability to pay."

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