The Australian Retail Credit Association (ARCA) says consumer rights in credit reporting are the focus of CreditSmart Day 2015, which is being held on May 6. CreditSmart Day forms part of national Privacy Awareness Week (3-9 May 2015), which is an initiative of the Office of the Australian Information Commissioner (OAIC) to promote awareness of privacy issues and the importance of protecting personal (including credit) information.
The CreditSmart campaign was launched by ARCA in March 2014 to educate consumers on changes to the Privacy Act enabling comprehensive credit reporting (CCR) in Australia. CCR allows the inclusion of payment history in credit reports, rather than just defaults and credit enquiries.
The comprehensive credit reporting system also now includes a number of safeguards for consumers, affording them more rights under these laws.
These consumer rights include:
1. The right to a free copy of their credit report annually, from each of the credit reporting bodies. If a credit application is rejected, they are entitled to request another free credit report.
2. The right to challenge and fix errors on their report, which credit providers and credit reporting bodies must investigate and correct free of charge.
3. The right to escalate their complaint to an external dispute resolution service such as the Credit and Insurance Ombudsman or the Financial Ombudsman Service, if consumers are unsatisfied with the initial investigation.
4. The right to have a ban placed on their credit file, to protect the credit file being accessed in cases of suspected identity theft.
Check your credit report on CreditSmart Day, says ARCA
ARCA CEO Damian Paull advised consumers to visit CreditSmart.org.au on CreditSmart Day, and follow the links to request a copy of their credit report from each of the three credit reporting bodies.
“We should all check our credit reports at least once each year. It’s more important than ever for Australians to stay on top of their credit record. By checking your credit report regularly, you can ensure you aware of what is on it, including any errors, and save yourself from potential headaches and disappointment down the track when you apply for a loan or credit card,” Mr Paull said.
Australian Privacy Commissioner Timothy Pilgrim also encouraged consumers to consider the significance of ‘privacy everyday’, the theme for this year’s Privacy Awareness Week, and how it relates to everyday life.
“If you are victim of identity theft, or your credit card details are compromised, this could mean that late payments, new credit accounts and possibly defaults may appear on your credit report. The trend towards conducting more of our transactions online using credit cards could affect people’s credit reports as much as their bank balances,” Mr Pilgrim said.
“Checking your credit report annually is just as important as checking your bank statement, which we all do regularly. CreditSmart.org.au is a useful resource for consumers which explains their new consumer rights and obligations relating to credit reporting under the new legislation,” Mr Pilgrim said.
