A 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. report can contain information about a person’s:
- previous credit applications;
- credit repayment history;
- late payments on credit contracts;
- relevant 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. judgments; and
- whether or not the person is or has been bankrupt.
For more detailed information about what is permitted to be included in a credit report, see ‘Permitted disclosures’, below.
Note that information can only remain on a credit report for a specific period of time.
Part IIIA of the PA 1988 permits credit-reporting bodies to disclose credit-reporting information to credit providers, A restriction attached to ownership of property to secure the repayment of money borrowed. The mortgage stops the owner of the property selling it until they have paid off the debt. insurers and trade insurers – but only for certain permitted purposes.
Information that is permitted to be disclosed in a credit report includes:
- loan repayment information (for details, see ‘Repayment history’, below);
- transfer of the credit provider’s rights: the PA 1988 recognises that the repayment rights of a credit provider in relation to credit may be transferred; the PA 1988 treats the acquirer as a credit reporter for the purposes of credit;
- credit application information: this includes details of loans a person has applied for, and anything the person has bought or attempted to buy on credit; the credit report shows whether or not a loan or purchase was approved;
- 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. information (for details, see ‘Default listings’, below);
- court judgments: a person’s credit report should only show if a court has made a judgment against the person in relation to any unpaid loans or credit; this information stays on a credit report for five years from the date of the judgment;
- When a debtor who cannot pay their debts has their money and property taken over and managed by a trustee who uses it to pay back creditors. The debtor is then called a bankrupt. information: a person’s credit report indicates whether or not they are or have been bankrupt; this information stays on a credit report for at least five years;
- serious credit infringement information: a serious credit infringement is:
- an A written law made by parliament. Also called an ‘Act of parliament’, ‘statute’ or legislation. done by an individual that involves fraudulently obtaining Under the Australian Consumer Law, a person who buys goods or services for less than $40 000 or for personal or home use. credit or attempting to fraudulently obtain consumer credit; or
- an act done by an individual that involves fraudulently evading the individual’s obligations in relation to consumer credit, or attempting to fraudulently evade those obligations; or
- an act by an individual where:
- a reasonable person would consider the act to indicate the individual’s intention to no longer comply with their obligations in relation to consumer credit provided by a credit provider,
- the credit reporter has – after taking steps that are reasonable in the circumstances – been unable to contact the individual about the act; and
- at least six months have passed since the credit provider last had contact with the individual.
A serious credit infringement stays on a credit report for seven years.
A credit report can contain information about the repayments a person has already made for credit contracts (e.g. repayments for credit cards, home loans, and personal loans).
Repayment history information can only be accessed by certain credit providers (e.g. banks).These credit providers can see a 24-month history of loan repayments.
Phone, gas and electricity providers are generally not able to access repayment information or to provide this information to a credit-reporting body. However, utilities providers can report a payment that is at least 60 days late.
A credit provider must take reasonable steps to ensure that:
- it does not disclose information to a credit-reporting body about a person’s repayment history more frequently than once a month;
- for each month, the credit provider only discloses whichever of the following is applicable:
- that the person’s credit repayment was not overdue for that month, or
- that the person’s credit repayment was overdue for that month; and
- the Providing information to another person or institution as required by a contract or other legal process. is expressed as a code, as following:
- where the person’s credit repayment is not overdue: ‘Current up to and including the grace period’, or
- where the person’s credit repayment is overdue, the age of the oldest outstanding payment is disclosed as a number: 1: 15–29 days overdue (this disclosure can only be made on day 15, as this allows for the 14-day grace period), 2: 30–59 days overdue, 3: 60–89 days overdue, 4: 90–119 days overdue, 5: 120–149 days overdue, 6: 150–179 days overdue, X: 180 and over days overdue.
A credit report can show if a person has not made repayments on time for credit contracts (e.g. credit cards, home loans, and personal loans). A ‘default listing’ on a credit report shows that a payment is overdue (s 6Q PA Act; CR Code).
A default listing can only be included in a credit report where:
- the payment is more than 60 days overdue;
- the overdue amount is greater than $150 (or a higher amount if prescribed by the Privacy Regulation).
Default listings are removed from credit reports after five years.
Under the PA 1988, credit-reporting bodies must take reasonable steps to ensure personal information included in credit reports is accurate, up-to-date and complete, and to correct any information that is not. Amendments to the PA 1988 set clear timeframes for processing corrections to people’s credit reports.
In addition, the CR Code requires that only permitted, accurate, up-to-date and complete information is included on a person’s credit report.
CR Code amendments, February 2020
Amendments to the CR Code were introduced on 14 February 2020. These amendments limit the types of information that can be included in credit reports – to the advantage of individual consumers – by ensuring that publicly available information that is not relevant to a person’s creditworthiness is not included in credit reports. For more information about these amendments, see https://www.oaic.gov.au/updates/news-and-media/credit-reporting-changes-to-benefit-consumers/.