Consumer rights important in big credit reporting shake up

Media Release 5 October 2011

In announcing major changes to credit reporting law, Privacy Commissioner, Marie Shroff, highlighted the need for further public education about the rights New Zealanders have when seeking credit. A new Summary of Rights released by her Office is aimed at helping consumers understand this complicated process.

"Credit is the lifeblood of commerce and our modern consumer society, and credit reporting information underpins lending decisions and helps businesses evaluate the creditworthiness of borrowers and manage debtor risk. But credit reporting can be a complicated process that intrudes upon individuals' privacy - and errors can and do occur," said Ms Shroff.

"The Credit Reporting Privacy Code puts some controls in place to ensure a credit reporting system that is fair, reliable, transparent, limited and accountable. But people are not always aware of their rights. The Summary of Rights gives consumers a quick and clear overview of their rights and how to exercise them," Ms Shroff said.

One key consumer right is the ability to access your own credit record without charge and get errors promptly corrected.

"Our Office worked with experts in clear communication to ensure that the Summary was easy to understand and so I was really pleased when the Summary of Rights was recognised with the WriteMark plain English standard," said Ms Shroff.

The Summary of Rights has been translated into Maori, Simplified Chinese and Samoan. "I hope that the translations will help bring key messages about consumer rights to a wider audience," Ms Shroff said.

"The new Summary should help to make people more aware of how the credit reporting system operates. This will be especially important as credit reporting practices change over the next few years. The credit industry and consumer groups, as well as my Office, have a part to play in helping consumers understand their rights. The Summary is a vital foundation for that," Ms Shroff said.

Credit reporters must make the Summary of Rights available to consumers.

ENDS

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