The Credit Reporting Industry in Australia

The Credit Reporting Industry in Australia

In Australia, just like in most other nations, credit reporting is considered the primary method for credit worthiness assessment of individuals.

 

In Australia, just like in most other nations, credit reporting is considered the primary method for credit worthiness assessment of individuals. The information generated serves as the basis for lenders and financial institutions for approving and disapproving applications for loans and other related financial products/services. The same data is also used in setting of credit card limits and interest rates applied on personal loans.  Clean Credit offers its clients a credit health check service where Clean Credit will obtain a copy of the clients credit file, Clean Credit will review the contents and go over the report with the client pointing out ways that we can improve the clients credit score.

Credit reporting in Australia is covered by the Privacy Act and is backed by the Credit Reporting Code of Conduct. Many problems arise due to numerous loopholes in the legislations covering the practice. This is not unique to Australia. In 2008 alone, there were up to 295 recommended amendments to the national credit reporting system. Credit reporting may not be currently as perfect as it should be, but public and private sectors are logically combining their efforts to eliminate the flaws for the protection of consumers.  Clean Credit specialises in identifying faulty, inconsistent and misleading credit listings and on this basis having them removed from our clients credit files.

Inaccurate information has always been the most common complaint filed. Consumers seem to be most anxious about accuracy of consumer reports. Unfortunately, credit reporting is not totally immune from possible errors because information is sourced from numerous agencies, lenders, and businesses.  It is the job of Clean Credit to identify inaccurate information on behalf of its clients and restore their credit rating in the process.

It should also be noted that some consumers become aware of their credit report only when their credit applications are turned down on the basis of the credit history. Such disapprovals lead them to seek a copy of their credit report. It may take time to correct errors as it may involve a long verification process. Thus, consumers are most annoyed by such a problem. It is also tedious to contest records from lenders and financial institutions.  This is were Clean Credit excels, as we deal with a large number of credit providers on a daily basis we are able to often reach a favorable outcome when this may prove impossible for the client in a direct capacity.  Removing negative listings from our clients credit files is something we take very seriously and we are thrilled to be able to offer the services of credit repair to our clinet’s.

Consumers should be more concerned about unauthorised and inappropriate disclosure of personal information, which is rampant across the credit reporting industry. According to several experts, there are reasons to worry about the extent of personal information listed and disclosed through credit reporting. Such data may possibly be accessed by unscrupulous parties, which intend to defraud and use personal information inappropriately.

The consumers have no idea how their credit reports are used by businesses. Loan providers, lenders, and financial institutions could readily access such reports for whatever purpose they may have, aside from credit investigation. Needless to say, there could be serious issues that may arise from this practice, though most consumers are not currently aware of.

The Privacy Act serves as a shield, which in turn prohibits comprehensive credit reporting. That is why credit reports mainly focus on negative information about consumers. ‘Positive credit reporting’ would remain a remote possibility in Australia as the federal and state governments still see no need for such.

Moreover, credit reporting in the country, just like in other countries, is within an ever-changing landscape. There are constant and continuous efforts to introduce amendments and changes to the current industry practices. In the end, consumers would always be the main priority. However, it would be more advantageous if they would be more aware of the current credit reporting industry long before they encounter problems with their credit reports.

For more information on how to repair your credit file and have negative credit listings such as defaults judgments removed from your credit file call Clean Credit on 1300 015 210

John Dickinson

Clean Credit

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