Government opens up CCR for consultation
The government is now seeking views on the draft comprehensive credit reporting legislation including associated hardship arrangements.
Industry submissions are due to the Treasury by the 5 September.
In November 2017, the then Treasurer, Scott Morrison announced that the Government would introduce a mandatory comprehensive credit reporting regime, requiring the big four banks to participate fully in the credit reporting system.
On 25 June 2018, legislation to implement the regime (National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018) passed the House of Representatives.
However, the Bill did not pass prior to the dissolution of Parliament due to the election.
The previous Bill, intended to mandate comprehensive credit reporting, has been updated to include the Attorney-General’s recently announced changes to the reporting of hardship arrangements.
These changes included amending the Privacy Act.
Under previous provisions in the Privacy Act, when a person is engaged in a hardship arrangement with one credit provider, this arrangement cannot be disclosed to other credit providers.
This has seen circumstances arise where people who are struggling to repay one credit provider, are provided with another line of credit from a different provider. The changes aim addresses this situation and provide these people with more confidence to apply for hardship.
Specifically, the revised Bill introduces a new category of information within credit reporting, enabling hardship information to be reported alongside repayment history information.