As of this year a wider variety of credit reporting data will be collected and distributed under a new all-inclusive credit reporting regime. The move has sparked consumer groups and businesses to express their concern about potential breaches to privacy.
Currently, everyone who has a credit card, personal loan or mortgage has a credit report. Yet, according to Yahoo! Finance, new information collected will include credit limits, repayments history and the opening and closing of accounts. The idea behind the tighter regime is that the approval of credit card and loan applications will be sped up.
Australian Chamber of Commerce chief executive Peter Anderson said that there are both disadvantages and advantages to the new regime. While people’s privacy could be compromised, it is a way for those handling repayments well to show lenders their positive credit history, Anderson explained.
Groups are asking that the industry be required to prove they are storing only information deemed necessary and show they are using the information responsibly.
