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Case Citation:

C v Telecommunications Company 2010 PrivCmrA 4

Subject Heading:

Listing of incorrect information about a payment default on an individual's consumer credit information file

Law:

Section 18E in Part IIIA of the Privacy Act 1988 (Cth) and paragraph 2.5 of the Credit Reporting Code of Conduct

Facts:

A telecommunications company listed a payment default on the complainant's consumer credit file.  The complainant claimed that they did not owe a debt to the telecommunications company, and that the default was listed in error.

Issues:

If a payment in relation to consumer credit is outstanding, a credit provider may record a ‘default listing' on the individual's consumer credit file.  A ‘default listing' is permitted under section 18E(1)(b)(vi) of the Privacy Act if:

• the payment is at least 60 days overdue
• the credit provider has taken steps to recover part or all of the amount outstanding.

Paragraph 2.5 of the Credit Reporting Code of Conduct states that where a credit provider becomes aware that:

• it has given to a credit reporting agency personal information which was inaccurate at the time of giving the information, and which may have, or might, adversely affect the decision to grant credit or
• it has given information of a type not permitted to be included in an individual's credit information file by a credit reporting agency

the credit provider must immediately advise the credit reporting agency of the inaccuracy or the existence of prohibited information.

Outcome:

The Privacy Commissioner commenced an investigation into the matter under section 40(1) of the Privacy Act.

The records kept by the telecommunications company confirmed that the complainant had not paid an outstanding balance on their account.  The account had also been outstanding for at least 60 days before the telecommunications company listed the payment default.

The telecommunications company sent a number of statements requesting payment to the complainant's current address.  The telecommunications company issued a written notice to the same address, advising that if the complainant failed to pay their account, a default might be listed with a credit reporting agency. 

However, in the course of the Commissioner's investigation, the telecommunications company became aware that it had listed the incorrect amount on the complainant's consumer credit information file.  In response, the telecommunications company offered to remove the default listing from the complainant's credit information file, and to cancel the debt.   

The Commissioner formed the view that while the telecommunications company had listed the incorrect amount, it had complied with the provisions in the Privacy Act regarding listing a payment default.

The Commissioner closed the aspect of the complaint regarding section 18E(1)(b)(vi) of the Privacy Act under section 41(1)(a) of the Privacy Act on the grounds that the telecommunications company had not interfered with the complainant's privacy.

Also, the Commissioner formed the view that the telecommunications company had adequately dealt with the issue of listing the incorrect amount by removing the default and cancelling the debt.  The Commissioner closed the aspect of the complaint regarding paragraph 2.5 of the Credit Reporting Code of Conduct 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

May 2010