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Privacy (Credit Reporting) Code (CR Code) variation

Privacy (Credit Reporting) Code (CR Code) variation

ARCA is conducting a consultation on the proposed CR Code variation between 3 and 17 April 2018. The context for this variation is set out in greater detail below.

The consultation material is as follows:

Further information on the independent review into the CR Code is available here: https://www.oaic.gov.au/privacy-law/privacy-act/credit-reporting

Feedback in response to the consultation material can be emailed to CRCode@arca.asn.au by close of business, Tuesday 17 April 2018.
 

Context for CR Code variation

The OAIC has written to ARCA and confirmed that it would consider an application by ARCA (as Code developer) to vary the CR Code to address the following matters identified by the CR Code Independent Reviewer (Pricewaterhouse Coopers):

  • clarifying the timing of issuance of section 21D notices and the possibility that there is inconsistency between the relevant provisions in the Privacy Act 1988 (Cth) and the Credit Code (PwC recommendation 4)
  • clarifying the permitted methods of delivery of section 21D notices and where to deliver those notices (PwC recommendation 5)
  • determining how the ‘maximum amount of credit available’ is calculated and consistent categorisation of credit contracts in determining the maximum amount of credit available (PwC Issue 15)
  • determining ‘the day credit is terminated or otherwise ceases to be in force’ to ensure accurate disclosures of consumer indebtedness (PwC Issue 16)
  • improving and clarifying mechanisms for correction of information (PwC Issue 18)
  • clarifying the definition of ‘month’ for purposes of reporting repayment history information (RHI) in respect of whether the time is to be calculated using business and/or non-business days (PwC Issue 29)
  • clarifying the impact of the application of a ‘grace period’ when calculating the first RHI period (PwC recommendation 7)
  • clarifying the scope of prohibition for developing a ‘tool’ to facilitate a CP’s direct marketing (PwC recommendation 8).

Given the introduction of the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting (CCR)) Bill 2018 in Parliament on 28 March 2018, it is expected that ARCA will work towards obtaining the Acting Australian Information Commissioner’s approval of these variations, so that they apply by 1 July 2018. On this basis, the OAIC expects that ARCA will commence consultation in early April 2018.