Specific privacy protections for individuals’ credit-related information apply under Part IIIA of the Privacy A written law made by parliament. Also called an ‘Act of parliament’, ‘statute’ or legislation. 1988 (Cth). These include:
- reporting information about your current A debt that does not have to be paid until some future time. Being allowed to pay later, in the future, for something you are getting now. commitments and your repayment history information (RHI) over the previous two years. RHI includes the day on which a payment is due, and the date on which you paid. It does not include the amount of any missed payment – only the fact that you have made or missed a payment;
- a simplified and enhanced correction and complaints process;
- prohibiting the reporting of defaults of less than $150; and
- allowing an individual to freeze access to their credit related personal information in cases of suspected identity theft or An intentionally dishonest act, or lack of action, done to deceive someone and bring some advantage over those who have been deceived..
For the most part, these changes commenced in March 2014. However, information collected since December 2012 about credit history may appear on your credit report and therefore affect your ability to get credit in the future.
If you are slow to pay a Money that is owed by one person or business to another., the The person or organisation to whom a debtor owes a debt. is likely to inform a credit-reporting agency (see Chapter 5.9: Credit reporting). Briefly, under paragraph 9 of the Privacy (Credit Reporting) Code 2014 (Version 2.1), which is registered under the Privacy Act 1988 (Cth), the most common circumstances in which a credit provider (creditor) can make a Failure to do something that is legally required. For example, a person who fails to make a payment on their car is in default on the loan; if they continue to be in default the creditor may issue a default summons to take the debtor to court. listing on your credit report are when:
- you are at least 60 days overdue in making a payment on a debt; and
- the credit provider has taken steps to recover the amount outstanding; and
- the credit provider has notified you at some stage that it A document that sets out what a person wants to happen to their money and other property after they die. list you in default if you become overdue in paying. (Note that this notification is often contained in the original terms and conditions of the An agreement that the law will enforce. with the credit provider.)
It is important to note that lodgment of a default listing on your credit report is not part of the An independent body that hears legal claims brought by parties and decides between them. Serious cases are heard by a judge and jury, or just a judge. Less-serious cases are heard by a magistrate. process for recovery of a debt. This means that a credit provider does not have to automatically lodge a default listing even if it has the right to. If you contact a credit provider when you have failed to pay a debt, you may be able to avoid having a default listing lodged if you enter into an arrangement to repay the debt.
Except in the case of credit-related personal information that is inaccurate, out-of-date, incomplete, irrelevant or misleading (which may include cases where the debt was A law made by parliament, either state or Commonwealth. Also called an Act, and Act of parliament or legislation. barred, or no longer legally enforceable (see ‘Statute-barred debts’, below), at the time it was listed), corrections to the default listing are not generally available.
The best you can do is get a note attached to your credit report saying that you have paid off the debt; a default listing cannot be removed just because the debt has subsequently been paid. Default listings stay on your credit report for five years from the date of listing, unless the default is classified as a ‘serious credit infringement’, in which case the listing will remain for seven years.
The most common instance of such a classification is termed a ‘clearout’, where the A person who owes a debt. has moved house without notifying the creditor, who is thus unable to contact the debtor.
The three credit-reporting agencies most commonly used by financial institutions are Equifax (previously called Veda Advantage), Experian and Illion (previously called Dun & Bradstreet). When you apply for a loan, most financial institutions will run a ‘credit check’ on you by accessing your credit file at one of these credit-reporting agencies. If default listings are on your report, it may become harder for you to obtain credit in the future.
Listings are automatically made on your credit report if:
- a judgment is entered against you in a court; or
- you go bankrupt.
While court judgments are held on your credit file for five years, bankruptcies remain there for seven years.