Lenders have been given the ability
to conduct a more thorough review
of a borrower’s repayment history.
According to today’s
The Australian Financial Review,
the government has announced changes
to the Privacy Act
which will allow lenders to find out
the opening and closing date of an account,
a borrower’s credit repayment history
and credit limits.
The ability to look at a borrower’s
credit repayment history will be made available
following the introduction of the
National Consumer Credit Protection Bill.
Current privacy restrictions stop lenders
from seeking payment history details,
as credit reports can only record
the basic identification details of borrowers,
their credit applications and
any negative events
such as defaults or bankruptcies.
The changes to the Act follow recommendations
made by the
Australian Law Reform Commission last year,
in a report that called for the complexities
of the Privacy Law to be simplified.
