National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2019 (joint submission)

This is a joint submission by:

• Australian Privacy Foundation
• CHOICE
• Consumer Action Law Centre
• Consumer Credit Legal Service (WA)
• Financial Counselling Australia (FCA) and
• Financial Rights Legal Centre.

Consumer representatives still have broad concerns about Comprehensive Credit Reporting (CCR) which we have expressed in several previous consultations. The consumer credit liability information that will appear on credit reports will now display previously undisclosed liabilities. This means that repayment history information will provide very little additional value for responsible lending purposes. Additionally, including financial hardship information in credit reports will lead to fewer consumers proactively talking to credit providers to obtain hardship assistance. This will undermine a decade of hard work and success in cementing good hardship practices.

The remainder of this submission addresses the following:

• Policy concerns:
  • Reducing retention time for financial hardship information;
  • Reducing accessibility of financial hardship information; and
  • The need for public disclosure of information security risks.
• Drafting concerns
  • Problems with the definition of “financial hardship indicator”; and
  • The need for a robust independent statutory review.
  • Amendments to external dispute resolution requirements.