23/8/04

One.Tel in Liquidation has had 65,000 customer default listings dropped from credit records after the Office of the  Privacy Commissioner found that the failed telecommunications company did not have systems in place to update customer credit default listings once a debt had been paid.

"Inaccurate credit records can stop people getting access to credit. It is therefore essential that credit providers have systems to ensure the accuracy of any default listings they make" said Privacy Commissioner Karen Curtis.

"Businesses that do not have such systems or the information necessary to ensure the accuracy of their records run the risk that they too could have default listing removed from credit records" said the Commissioner.

The credit reporting organisation Baycorp Advantage removed the 65,000 records as a result of advice received from the Commissioner that the One.Tel records could be inaccurate.

"I commend Baycorp Advantage for taking positive steps to comply with its obligations under the Privacy Act to maintain the accuracy of its credit records by removing the questionable defaults listed by One.Tel," said the Commissioner.

Baycorp Advantage performed an analysis of its credit record statistics which showed that in comparison to other credit providers only a relatively small number of One.Tel listings had been updated.

Baycorp Advantage has made the decision to send updated credit information files to any individual who has obtained a copy of their personal file in the last three months and whose file has been affected by this change, free of charge. Baycorp Advantage has also cancelled One.Tel in Liquidation's access to its credit reporting services.