• the type of each current credit account;
  
  
• the date on which each current credit account was opened;
   
• the credit limit of each open account;
  
  
• the date on which each credit account was closed; and
  
  
• credit repayment history – only if the Government was satisfied “there is an adequate framework imposing responsible lending obligations in Commonwealth, State and Territory legislation.”

David Bell, Chief Executive of the ABA, said: “These proposals have not been developed to satisfy the demands of the banking industry. Clearly, the Federal Government and the ALRC believe that default rates will be reduced through better risk assessment.”

“The banking industry agrees with these ALRC recommendations because it will give lenders and credit providers more information to assess a customer’s credit worthiness based on their existing credit history. This will enable lenders to see an accurate picture of a customer’s indebtedness. Importantly, this will allow lenders to make better informed and fairer lending decisions.”
 
“Some consumer groups claim this will cause financial exclusion, but these same groups are also the first to criticise banks for providing too much credit. I don’t understand why consumer groups would be critical if these changes will prevent some people falling into unmanageable levels of debt.”

Media stories claiming banks will ‘spy’ on credit histories, implying that lenders will access information in secret or without permission, are incorrect.

Mr Bell said: “The new proposals on the information to be added to the credit files will be done within the Privacy Act, which will be strengthened with a mandatory Code for credit reporting, availability of external dispute resolution schemes and increased powers for the Privacy Commissioner.”

“Access to the credit bureau file will be limited by the law, as it currently is, and mainly when a customer makes an application for credit.”

“There is an added layer of protection for customers because the proposed law will prohibit lenders using the information for direct marketing purposes. Therefore, we think customers’ privacy will be protected.”

Finally, the Federal Government has announced these proposals at the same time as the Parliament is close to passing new and substantial Federal consumer credit law reforms which include responsible lending obligations on all consumer credit providers.