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The Australian Competition & Consumer Commission (ACCC) has taken credit reporting body Equifax to Court over alleged breaches of the Australian Consumer Law.
According to the regulator, Equifax made false or misleading representation to consumers from June 2013 to March 2017. The included paid credit reports that “were more comprehensive than the free reports, when they were not.”
Equifax was formerly known as Veda advantage. The US-based firm acquired Veda in February 2016, and Veda’s Australian operations were subsequently rebranded under the Equifax name.
ACCC has also accused Equifax of representing to customers that they had to buy credit reporting packages for it to correct information held about them, or to do so quicker. “Equifax was required by law to take reasonable steps to correct the information in response to a consumer’s request for free,” said the regulator.
Euifax is said to have misrepresented a one-off fee for credit reporting services, as its agreement provided that customer’s subscriptions to the services automatically renewed annually unless the consumer opted out in advance. ACCC said this renewal term is an unfair contract term, which is void under the ACL.
“We allege that Equifax acted unconscionably in selling its fee-based credit reporting services to vulnerable consumers, who were often in difficult financial circumstances,” ACCC Commissioner Sarah Court said.
“We allege that Equifax told people they needed to buy credit reporting services from them in situations when they did not. It is important for consumers to know they have the legal right to obtain their credit report and to correct any wrong information for free,” she added.
