April 19, 2023
A credit report contains information about any past or current consumer loans or debts and your repayment history. A credit report can also contain other public information such as court proceedings, and whether you have been bankrupt or personally insolvent.
Your credit report is an important measure of your financial reliability and will be reviewed by banks and other financial institutions when applying for a credit card, a loan or buying a house.
Credit-related personal information is regulated by the Privacy Act 1988 (Cth), the Privacy Regulation 2013 and the Privacy (Credit Reporting) Code 2014. The legislation covers what is allowed to be on reports about credit, deletion of information, access to credit information and accuracy and the security of the information held.
Recent Changes
On 3 February 2021, the Federal Parliament passed the National Consumer Credit Protection Amendment (Mandatory Credit Reporting and Other Measures) Bill 2019.
The changes commenced on 1 July 2021 and were aimed at ensuring that credit reporting bodies have a more complete and comprehensive picture of consumers' creditworthiness, by mandating that certain credit providers supply information about 'positive' credit matters, such as how well a person is meeting their repayment obligations.
Under the Privacy Act 1998 (Cth) the following information can be recorded on your Credit Report:
· Consumer credit liability accounts;
· Monthly repayment history on credit accounts such as mortgages and credit cards;
· Overdue accounts such as defaults and serious credit infringements;
· Bankruptcy, debt agreements and personal insolvency; and
· Court proceedings information.
Your personal information will only be retained for certain periods of time. For example, court proceedings information will be retained for a period of 5 years that starts on the day on which the judgement to which the information relates is made or given. Credit information relating to repayment history will be retained for a period of 2 years, starting on the day on which the monthly payment to which the information relates is due and payable.
Generally information can only be removed from your credit report once the relevant retention period has passed, however it is possible to request amendments to your credit report to reflect satisfied debts etc so that they do not show as outstanding.
There are a number of credit reporting agencies that can provide you with a copy of your credit report on request and further information.
Otherwise if you have any questions about your own credit information or credit history report please contact us.
The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
By Danielle Edwards (Senior Associate)
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