The National Consumer Credit Protection Amendment (Mandatory Credit Reporting and Other Measures) Bill 2019 has been introduced into the House of Representatives.
It is based on the 2018 Bill which lapsed when the election was called earlier this year but contains additional provisions relating to financial hardship information. Background.
The Bill amends the Credit Act to mandate a comprehensive credit reporting regime. Under the mandatory regime eligible licensees, who on 1 April 2020 are large ADIs, must provide credit information on consumer credit accounts to credit reporting bodies.
An ADI is considered large when its total resident assets are greater than $100 billion. Other credit providers will be subject to the regime if they are prescribed in regulations.
The initial bulk supply is split across two years:
• By 29 June 2020, large ADIs must supply credit information on 50 percent of the consumer credit accounts within the banking group to all credit reporting bodies the large ADI had a contract with on 2 November 2017.
• By 29 June 2021, large ADIs must supply credit information on the remaining accounts, including those that opened after 1 April 2020 and those held by subsidiaries of the large ADI to the same credit reporting bodies as the first bulk supply.
Following the bulk supply of information, large ADIs must keep the information supplied accurate, complete and up-to-date, including by supplying information on subsequently opened accounts. This information must be supplied to credit reporting bodies that received the initial bulk supply and with whom the licensee continues to have a contract under the Privacy Act 1988.
The Bill also amends the Privacy Act 1988 to permit reporting of financial hardship information within the credit reporting framework.