MEDIA RELEASE: ARCA welcomes certainty provided by Comprehensive Credit Reporting Legislation
Announcement posted by Honner 08 Feb 2018
MEDIA RELEASE
8 February 2018
ARCA WELCOMES CERTAINTY PROVIDED BY COMPREHENSIVE CREDIT REPORTING LEGISLATION
The Australian Retail Credit Association (ARCA) welcomes the certainty provided by the Federal Government’s release of draft legislation enabling a mandatory comprehensive credit reporting regime.
Today, Treasurer Scott Morrison released details of the draft legislation, mandating the four major banks to take part in Comprehensive Credit Reporting (CCR). The legislation requires the four major banks to share comprehensive data for at least 50 percent of their accounts by 28 September this year, and the remaining 50 percent after another twelve months.
ARCA Executive Chairman Mike Laing said, “The draft legislation will allow industry to transition to comprehensive credit reporting with confidence. We welcome that the legislation makes it clear that industry will lead and administer the data sharing framework. We are especially pleased to see the industry developed principles of data sharing embedded in the legislation”.
Comprehensive Credit Reporting has been globally recognised for increasing the availability and affordability of responsible credit to borrowers. Positive information, which includes information about on-time loan repayments, will improve the ability of credit providers to assess a consumer’s true credit performance and make better lending decisions. CCR is also an important tool for consumers to take control of their credit reputation.
As the peak body for the consumer credit industry, ARCA developed and administers the industry-based data sharing framework, the Principles of Reciprocity and Data Exchange (PRDE). The PRDE is a principles-based framework which enables signatories to share positive information, as well as negative data.
“ARCA looks forward to working with Government, on behalf of our members and industry, as it finalizes the draft legislation. We will continue to encourage and educate industry and consumers alike to better understand the benefits of comprehensive credit reporting and the PRDE,” Mr Laing said.
The Government has given industry two weeks to consider the draft legislation. ARCA will be providing feedback on behalf of its members.
ENDS
For more information, contact:
Rashmi Punjabi, Honner
rashmi@honner.com.au
0466 658 475
Mike Laing, ARCA
mlaing@arca.asn.au
0414 446 240
About ARCA
ARCA is the peak body for retail Credit Providers and Credit Reporting Bodies in Australia. ARCA promotes best practice in credit risk assessment and responsible credit, as well as promoting better standards in consumer credit reporting. ARCA takes a leadership role in encouraging the sharing of information to enable Credit Providers to better serve their customers. Visit www.arca.asn.au for further information.