Veda Advantage changes to Credit Reporting Code

Veda Advantage says changes to Credit Reporting Code will benefit consumers and small business

Media Release

Veda Advantage says changes to Credit Reporting Code will benefit consumers and small business 16 December 2010, Auckland Final changes to the Credit Reporting Code No 4 announced by the Privacy Commissioner today will benefit consumers and small businesses as they seek credit in a constrained economic environment.

The revised Code is the result of a two year review and will allow credit reports to include new information about consumers such as details on type of credit accounts held, their credit limit and whether an account is open or closed. Credit reporters will also be able to hold drivers licence numbers to further improve the accurate matching of names.

Veda Advantage Managing Director John Roberts says the four new categories of additional information will improve credit reports and assist credit providers in analysing the risk of advancing credit to people. But he says the real improvement in risk assessment will come in the Privacy Commissioner’s next amendment to the Code in 2011 which may provide for repayment history to be included in credit reports.

“Veda Advantage believes a single phase change to the information held on credit reports would be better but agrees with the Privacy Commissioner that there is value in waiting to see the full detail of Australia’s proposed law changes to ensure trans-Tasman alignment<” Mr Roberts says.

Veda Advantage supports the additional protections the Privacy Commissioner has added to the Code to provide confidence to consumers that their personal information will be protected.

“The amendments show New Zealand leading Australia and catching up with the world on credit reporting information and this will ultimately serve to improve access to credit for those consumers and small businesses unfairly denied access while reducing default rates,’ Mr Roberts says.

ENDS

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