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Comprehensive Credit Reporting

COMPREHENSIVE CREDIT REPORTING (CCR)

Comprehensive Credit Reporting is now mandatory in Australia.

Your credit report will now include information about all current accounts held, what accounts have been opened and closed, the date default notices were paid and whether repayments were met.

Concerns are being raised over the increased amount of personal financial information being given to lenders and accessible by many parties such as utilities, communications companies and others. Regardless it is now happening and we have to live with it.

The writer openly admits being one who has serious privacy concerns and not in favour of CCR, believing it was introduced with apparent minimal disclosure to the general public. Most mortgage brokers were not aware this was happening until the very end when it was too late to make comment.

The comprehensive data now being added to your credit report includes:

  • The types of all loans and all credit accounts each individual has;
  • When those loans and credit accounts were opened and closed (if relevant);
  • The current credit limit of each loan and credit account;
  • The repayment history information of each account including:
    • When payments are made on time;
    • When payments are more than 14 days late; and
    • When clients are over their credit limits for more than 45 days.

It is expected there will be reviews to this new additional information in your credit files in the forseable future and the result, as always seems now days, may end up with even more data being collected. But who knows.

Everyone now need to be much more aware of the balances and limits of all their banking accounts so they do not miss repayments or overdraw accounts or exceed the limits on any of their accounts. Also potential borrowers need to ensure all their utility bills (phone, internet, water, electricity and gas) payments are made on time or arrangements made in advance with the service provider to ensure their credit file is not jeopardised with negative records.