The Turnbull Government is ensuring Australians can get better deals on their loans – today releasing an exposure draft so interested parties can have their say on the new Mandatory Comprehensive Credit Reporting Regulations.
Consultation on the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Regulations 2018 exposure draft follows the introduction of the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018 into Parliament earlier this year.
The Mandatory Comprehensive Credit Reporting Bill will require the major banks to supply comprehensive credit information to credit reporting bodies from 1 July 2018.
Comprehensive credit reporting is not a new principle in our regulatory framework. Lenders have had the ability to share comprehensive credit information on a voluntary basis since 2014, but have failed to do so. The major banks have failed to join and provide the critical mass necessary to attract other credit providers into the system.
Mandatory Comprehensive Credit Reporting will ensure lenders have access to a deeper, richer set of data, encouraging new entrants and small lenders, including innovative FinTech firms, to compete for small business and retail customers with positive credit histories.
It also ensures competition in the lending market is increased by reducing the credit data advantage held by the major banks.
The proposed new Regulations in the exposure draft will give effect to a number of provisions within the Bill.
These include:
- excluding certain types of accounts from being supplied within the mandatory regime;
- specifying additional events which require ongoing reporting under the mandatory regime;
- placing restrictions on credit reporting bodies from disclosing information they have received or derived through the mandated regime;
- setting out the types of information that credit providers and credit reporting bodies must include in statements to the Treasurer; and
- setting out circumstances when the Australian Securities and Investments Commission (ASIC) can issue an infringement notice for a civil penalty.
The draft Regulations and explanatory materials are available on the Treasury website. The Government encourages all interested parties to make a submission.