SYDNEY 17 April 2015:
The Australian Retail Credit Association (ARCA) today said it is pleased with the level of support it has received for its application for authorisation of the Principles of Reciprocity and Data Exchange (PRDE), which is currently being considered by the Australian Competition and Consumer Commission (ACCC).
The PRDE is designed to support industry efforts to expand credit data sharing, paving the way towards the implementation of comprehensive credit reporting (CCR) in Australia.
ARCA CEO Damian Paull said: “We are very pleased with the level of industry engagement regarding the PRDE application. A number of organisations representing a broad cross section of industry have supported the PRDE in submissions lodged with the ACCC. If authorised, we are confident that these principles will bring Australia one step closer to comprehensive credit reporting.”
Australia is one of the last developed countries to adopt comprehensive credit reporting, introducing an amended Privacy Act, supporting regulations and the Privacy (Credit Reporting) Code in March 2014. The legislative framework ensures payment behaviour, such as repayment history information, can be recognised in credit reports as well as information such as defaults and bankruptcies.
Comprehensive credit reporting is widely recognised globally for reducing the likelihood of default on loans, and increasing the availability of responsible credit to borrowers.
As the legislative framework did not address how organisations are incentivised to exchange credit data, in consultation with its Members and other stakeholders ARCA developed the PRDE- a voluntary set of principles designed to create an industry standard to incentivise credit reporting bodies and credit providers to exchange credit data. If authorised by the ACCC, signatories to the PRDE would agree to data exchange on a reciprocal basis, to improve the overall transparency and fairness in the credit reporting system.
“ARCA and its Members are committed to comprehensive credit reporting remaining a progressive and voluntary system, with the PRDE designed to encourage industry participation. We look forward to further public engagement throughout the authorisation process.” Mr Paull said.
The ACCC is expected to make a decision on the authorisation application later this year.
