2008 - Complaint Case Note 14

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Case Citation:

N v Telecommunications Company [2006] PrivCmrA 14

Subject Heading:

Listing of a serious credit infringement on an individual’s consumer credit information file

Law:

Section 6(1), section 18E(1)(b)(x), section 18E(8)(a) and section 18E(8)(b) of the Privacy Act 1988 (Cth)

Facts:

The complainant cancelled their telecommunication service with the telecommunications company. Subsequent to this cancellation, the complainant received notices that the account was overdue and seeking payment of the account. The complainant contacted the telecommunications company disputing the overdue account. The telecommunications company listed a serious credit infringement on the complainant’s consumer credit information file.

Issues:

Section 18E(8)(a) and section 18E(8)(b) of the Privacy Act restricts the information that can be disclosed by a credit provider to a credit reporting agency. A credit provider’s opinion that an individual has, in the specific circumstances, committed a serious credit infringement, is information permitted to form part of an individual’s consumer credit information file under section 18E(1)(b)(x) and this provision also interacts with the definition below.

Section 6(1) of the Privacy Act says that a serious credit infringement means an act done by a person:

1. that involves fraudulently obtaining credit, or attempting fraudulently to obtain credit; or
2. that involves fraudulently evading the person’s obligations in relation to credit, or attempting fraudulently to evade those obligations; or
3. that a reasonable person would consider indicates an intention, on the part of the first-mentioned person, no longer to comply with the first-mentioned person’s obligations in relation to credit.

The issue for consideration was whether the telecommunications company was permitted to list a serious credit infringement on the complainant’s consumer credit information file in the circumstances.

Outcome:

The Privacy Commissioner opened an investigation into the matter under section 40(1) of the Privacy Act. The Commissioner wrote to the Telecommunications Company providing an opportunity to respond to the complainant’s allegations. In response the Telecommunications Company put forward a proposal to resolve the matter.

Without admission of liability, the Telecommunications Company proposed resolution included the removal of the enquiry and the serious credit infringement listing from the complainant’s consumer credit information file, and a refund of the amount to the complainant. The complainant accepted this offer in resolution of the complaint. The Privacy Commissioner closed the complaint under section 41(2)(a) of the Privacy Act on the grounds that the Telecommunications Company had adequately dealt with the complaint.

OFFICE OF THE PRIVACY COMMISSIONER

June 2008