31 August 2006

The Privacy Commissioner, Karen Curtis, has today announced the renewal of two credit provider determinations. There is no change in the terms of either of the determinations and both will be effective for five years.

"I believe these Determinations appropriately balance the protection of individual's privacy with the needs of business to continue arrangements for the effective provision of credit services," said Ms Curtis.

The Office sought input on the review of the Determinations from industry, consumer representatives and other regulators.

"The consultation on the operation of the Determinations, the experience of my Office in researching enquiries and complaints from individuals, and the experience of other regulators demonstrate that, on balance, the Determinations remain appropriate.

However, in light of results from consultation and research, the OPC plans to investigate options for providing further guidance and education to organisations that access the credit reporting system by virtue of the Determinations. The areas of focus will be the requirement for organisations to properly notify their customers that defaults may be listed with a credit reporting agency and the requirement for organisations to keep complete and accurate records.

"It is important that credit providers fulfil their obligations under the Privacy Act and the Determinations if they are to receive the benefits of the credit reporting system," said Ms Curtis.

The Privacy Commissioner also intends to refer some matters arising from the review of the Determinations to the Australian Law Reform Commission's current inquiry into privacy law in Australia, including:

• that some credit providers recognised under the Privacy Act and the Determinations may not be required to comply with other credit related legislation such as the Uniform Consumer Credit Code, and
• the potential impact that changes to the nature of the credit sector in Australia may have on the privacy of personal credit information.

Background

• Determination No. 2006 - 3 Assignees (the Assignees Determination)
• Determination No. 2006 - 4 Classes of Credit Providers (the Classes Determination)

The Assignees Determination means that a corporation which acquires the rights of a credit provider with respect to the repayment of a loan (whether by assignment, subrogation or other means) shall, in relation to that loan, be regarded as the credit provider for the purposes of the Privacy Act 1988 (the Privacy Act). By being granted credit provider status the assignee is able to conduct credit reporting in relation to an assigned loan.

The Classes Determination extends the types of organisations that can gain access to the credit reporting system. This means that when these organisations are considering providing credit for 7 days or more they can access information on the credit reporting system to help inform their decision.

--END---