WARNING: As of December 2012 your repayment history (i.e. missed and late payments) is being recorded, and could end up on your Credit Report!
The Federal Privacy Commissioner has announced that from December 2012 missed payments on credit cards or loans may be included on your credit reporting file and could affect your ability to obtain credit in the future. Changes to the Privacy Act 1988 (Cth) will soon allow credit reporting agencies to collect new kinds of credit-related personal information. The changes will allow lenders to give your Repayment History Information (RHI) to credit reporting agencies starting in March 2014, but the information that they hand over can date back to December 2012.
Previously the Privacy Act said that only a default on your loan repayments could be listed on a credit report. A default happens when a payment is at least 60 days overdue and the lender has already taken steps to recover the money. The new RHI can now include:
- The date your payment is due
- Whether you have paid by the due date
- The date on which you do pay if you are late (in other words, how late you are).
It doesn’t matter how much the missed or late payment is for, only the fact that a payment was missed is recorded on the credit report. Part payments will count as missed payments. Credit providers will still be collecting information about defaults on loan repayments. If you would like to find out what RHI is held about you, you can make a request to the relevant credit provider or credit reporting body to access that information. In most cases they should give you this information for free.
For information on how to get a copy of your Credit Report. Note that RHI information will not yet show on your credit report even though it may already be being collected ready for March 2014.
To read more about these changes, visit the Privacy Commissioner’s website