The number of Aussies blacklisted by credit reporting bodies will increase exponentially after Friday, due to changes to the Privacy Act allowing credit bodies to share data on borrowers among themselves, according to a national finance company.
From Friday, under the Privacy Amendment Act 2012 (Part IIIA), credit reporting bodies can disclose a borrower’s repayment history information (RHI), along with other credit-related personal information, to licensed credit providers.
Since December 2012 everyone’s RHI started being recorded in full.
Safe Financial managing director Rafer Hart said this means that anyone who has failed to make a payment on time since December 2012 could be blacklisted.
“Repayment history information shows your repayment behaviour including late repayments or missed payments,” he said.
“Something as little as one late repayment could now have far worse consequences for Australians who may face being blacklisted from Friday onwards.
“This alarming new amendment is going to hit Aussies hardest when they’re ready to apply for a car or home loan and learn that they’ve got defaults against their name.”
Having your credit file blacklisted through one simple error can place a borrower’s life and financial position in limbo, Hart said.
“From 14 March, there will be far more people seeking out alternatives to credit cards and bank loans and looking for more compassionate financing options.”
Safe Financial is a national finance company offering home loans, car loans, and business finance solutions. Hart said the company will be taking a “more understanding approach” and will give borrowers who have been restricted by the new regulations a second chance.
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