POSITIVE CREDIT REPORTING

Sydney, 13 May, 2005: The Australian Bankers’ Association (ABA) believes that there needs to be more information in the public domain to support an informed public debate about the benefits and disadvantages of positive credit reporting.

More information is essential to the development of a sound public policy outcome.

Positive consumer credit reporting would allow consumer credit bureaux to collect and record more data than is presently recorded in Australia.

Positive credit reporting allows credit providers and other firms that provide services on credit to share information on individual consumers' credit files by subscribing and contributing this information to a central database. 

Shared information may include amounts borrowed, type of credit facility, credit provider, repayment history on all credit accounts and default information.

Advocates of positive credit reporting say it will help prevent over-commitment, bad debt and fraud. On the other hand, opponents’ have concerns that the system will lead to higher levels of borrowing leading to consumers more vulnerable to changes in their circumstances, for example, unemployment.

David Bell, Chief Executive of the ABA, said: “The issues surrounding positive credit reporting are complex and there are still mixed views among the ABA membership on the desirability of this system for Australia.”

“In addition, there are community concerns that must be taken into account, for example consumer privacy.”

The ABA will continue to carefully consider all available information on this issue.


For further information:

Heather Wellard
Director, ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
 

ENDS