Case Citation: 

N v Accountancy Firm [2007] PrivCmrA 16

Subject Heading:

Improper consumer credit listing

Law:

Sections 6 and 18G of the Privacy Act 1988 (Cth)

Facts:

The complainant was a member of a trust and a shareholder in a company, both established to conduct a business.  The complainant's spouse was also a member of the trust and shareholder of the company; the spouse took on directorial and secretarial responsibilities.

An accountancy firm prepared a Business Activity Statement for the trust and issued an invoice but received no payment.  The complainant maintained that the responsibility for the debt belonged to their spouse.  The accountancy firm had a payment default listed on the complainant's consumer credit information file.

Issues:

Section 6 of the Privacy Act defines credit as a loan that is intended to be used wholly or primarily for domestic, family or household purposes.

Section 18G(a) of the Privacy Act provides that a credit provider in possession or control of a credit report must take reasonable steps to ensure that personal information contained in the file or report is accurate, up-to-date, complete and not misleading.

Outcome:

The Privacy Commissioner investigated the matter under section 40(1) of the Privacy Act.

The accountancy firm provided documentation with joint signatures of the complainant and their spouse which, they argued, was evidence the complainant had a degree of responsibility for the trust's financial activities.

The Commissioner decided that the intended use of the credit was the most important consideration in the complaint.  The Commissioner was of the opinion that the money owed was for the provision of an accounting service to the trust rather than for domestic or household purposes.  This meant that it could not be classed as credit under section 6 of the Privacy Act, and so the default could not be listed on a consumer credit information file.

As a result, the default listing was removed from the consumer credit information file. The complainant was satisfied with this response.  The Commissioner closed the complaint under section 41(2)(a) of the Privacy Act on the basis that it had been adequately dealt with.

OFFICE OF THE PRIVACY COMMISSIONER

June 2007