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The Principles of Reciprocity & Data Exchange (PRDE)
Access to credit reporting information can have a critical impact both on lending decisions and the ongoing management of credit accounts. Borrowers may either inadvertently or deliberately under-disclose their liabilities, in which case the onus will fall on the lender to ‘fill in the blanks’ from other, possibly unreliable, sources.
The use of comprehensive credit reporting information makes a lenders’ job a lot easier, as this information provides an impartial, easily accessible source of accurate information about a borrower.
ARCA has drafted the Principles of Reciprocity and Data Exchange (PRDE) which is a multilateral arrangement that governs the supply and access of data entered into the credit reporting system by signatories. As part of the PRDE, signatories will also begin to supply data in accordance with the Australian Credit Reporting Data Standard (ACRDS).
To find out more about the six principles of the PRDE, click here. You can also browse through our range of FAQs which have been developed to answer some of the more common questions about the PRDE. The PRDE FAQs can be found here.
For further information about the PRDE or the PRDE signatory process, please submit your details below:
In Australia, legislation allowing comprehensive credit reporting commenced operation in March 2014. Comprehensive credit reporting refers to two new data sets: consumer credit liability information (CCLI) and repayment history information (RHI) which can only be accessed by Australian Credit Licence (ACL) holders.
Why is this valuable information? Experience in overseas markets has shown that information about a borrower’s current liabilities results in better credit decisions – because a lender is able to use this information to more accurately assess a potential borrower’s risk, and make a decision which reflects this assessment.