Consumers and small businesses will have better access to finance under legislation re-introduced into the Parliament today by the Morrison Government to enact the Mandatory Comprehensive Credit Reporting (CCR) regime.
The CCR regime will deliver benefits to both borrowers and lenders by providing access to a deeper, richer set of data, enabling them to better assess a borrower’s true credit position. This will drive more competition in the market by encouraging new entrants and smaller lenders, including innovative FinTech firms, to compete for customers with positive credit histories.
The National Consumer Credit Protection Amendment (Mandatory Credit Reporting and Other Measures) Bill 2019 has been updated to include the Government’s recently announced changes to the reporting of hardship arrangements.
Specifically, the revised Bill introduces a new category of credit reporting information, enabling hardship information to be reported alongside repayment history. Consumers experiencing financial difficulty will be able to demonstrate their credit worthiness with more accurate reporting of their circumstances.
The CCR regime will enable improved competition and data-driven innovation that will allow consumers to get a better deal.
Better access to data and more competition in the financial services sector is part of the Morrison Government’s plan to build a stronger economy.