Credit reforms aim to increase flow of data

The ACCC is now evaluating proposals by the Australian Retail Credit Association (ARCA) designed to improve the sharing of data by credit providers.

These proposals are designed to support industry efforts to expand credit data sharing, paving the way towards the implementation of comprehensive credit reporting.

ARCA chief executive Damian Paull said the association was very pleased with the level of industry engagement regarding its proposals.

“If authorised, we are confident that these principles will bring Australia one step closer to comprehensive credit reporting,” he said.

Australia implemented a new credit reporting regime in March 2014. However, the legislative framework did not address how organisations are incentivised to exchange credit data.

ARCA said its proposed changes would drive credit providers to exchange data on a reciprocal basis and thereby improve the overall transparency and fairness in the credit reporting system.

Comprehensive credit reporting would remain voluntary under the proposed new framework.

Six months after the new credit regime came into effect, one BDM, Andrew Crossley from Homeloans, revealed he had not noticed any visible changes, nor had any brokers asked him about the new rules.