20 April 2007

The Privacy Commissioner, Karen Curtis, has concluded that, while the credit reporting provisions of the Privacy Act have generally worked well, the regulation of personal credit information could be improved to reduce complexity while still maintaining strong privacy protections.

"The protection of credit information remains an important privacy issue for the community, and my Office is committed to working to make credit reporting privacy safeguards and standards clearer and more accessible," Ms Curtis said. 

In her submission to the Australian Law Reform Commission's (ALRC) Review of Privacy (Issues Paper 32) ,  the Commissioner has recommended that the existing credit reporting provisions could be repealed and replaced by the National Privacy Principles operating in tandem with a binding code, as a way of improving consistency and reducing complexity.

"The existing credit provisions from 1991 are complex and this can result in businesses being unclear about their obligations," Ms Curtis said. 

"I am confident that regulating the use of personal credit information through a combination of the National Privacy Principles and a binding code will assist businesses and the community. It will reduce the complexity of the credit reporting provisions, help people to better understand their rights and still provide strong privacy protections."

In response to questions raised by the ALRC's Issues Paper, Ms Curtis detailed a range of other positions on credit reporting matters. These include: 

Comprehensive reporting

In the absence of independent research, there is not a strong argument to support a move to comprehensive ("positive") credit reporting. An independent research study should be commissioned to determine how such a scheme would impact on consumers and the economy.

Publicly available information

The ALRC should consider whether all personal information used to determine an individual's eligibility for credit, including publicly available information, should be regulated by the credit reporting provisions of the Privacy Act. 

Commissioner's role

The Commissioner should be given stronger powers to handle systemic issues within the credit industry and potential issues arising from industry practice.

For further information see Submission to the Australian Law Reform Commission''s Review of Privacy - Issues Paper 32 Credit Reporting Provisions

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