Credit Reports are intended to be a means of warning credit providers about people who would have a poor history in repaying credit extended to them. The information on Credit Reports include your personal details, details in relation to loan applications you have made in the last 5 years, details of your current loans, defaults in payments by you of more than 60 days and also payments of those default, judgments against you, bankruptcy notices and serious credit infringements or “clear out listings”.
Some of this information may remain on your Credit Report for 5 years and in the case of bankruptcies or serious credit infringements for 7 years from the date of listing.
Unfortunately, the information on Credit Reports is not always accurate but it still has a lasting effect on your ability to obtain finance.
The Privacy Act (Cth) 1988 has provisions to protect you from incorrect information remaining on your Credit Report. You are entitled to obtain a copy of your Credit Report and request that any incorrect information is corrected.
Under the Privacy Act 1988, section 18J;
(1) A credit reporting agency in possession or control of a credit information file, or a credit provider or credit reorting agency in possession or control of a credit report, must take reasonable steps, by way of making appropriate corrections, deletions and additions, to ensure that the personal information contained in the file or report is accurate, up‑to‑date, complete and not misleading.
(2) Where:
(a) a credit reporting agency in possession or control of a credit information file, or a credit provider or credit reporting agency in possession or control of a credit report, does not amend personal information contained in that file or report, by making a correction, deletion or addition, in accordance with a request by the individual concerned; and
(b) the individual requests the credit reporting agency or credit provider to include in that file or report a statement provided by the individual of the correction, deletion or addition sought;
the credit reporting agency or credit provider must take reasonable steps to include the statement in the file or report within 30 days after being requested to do so.
Further, under section 18R of the Act;
(1) A credit reporting agency or credit provider must not give to any other person or body (whether or not the other person or body is acredit reporting agency or credit provider) a credit report that contains false or misleading information.
(2) A credit reporting agency or credit provider that intentionally contravenes subsection (1) is guilty of an offence punishable, on conviction, by a fine not exceeding $75,000.
If you would like more information on this area please contact Janet Lazzaro at our Sydney office.
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