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.