Big Changes to Credit Reporting

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It's just unbelievable how much the debt collection industry has changed and now there are more changes about to happen in the Credit Providers arena.

As of the 14 March 2014 new laws will come in that will change the way credit is given to consumers.

This will undoubtedly have an effect on business in general, the changes have been brought in to enable Credit Providers to cross reference consumers credit information. The information provided on a consumer's credit file will now include payment history on all credit providers accounts.

What does this mean:

  • late payments will be reported on consumers credit file by credit providers
  • payment history will now include both positive and negative information
  • history of applications for credit will be logged.

What does this mean for businesses?

  • consumers with poor credit ratings may no longer get credit
  • consumers who have multiple credit cards will no longer be able to max out a card and apply for a new one with a different bank
  • the flow on effect for business will be that consumers may not have ready access to credit
  • business will need to be diligent in making sure your information about your customers is correct, in the event a customer fails to pay.

In summary, business will need to be aware of those customers who change their payment habits, it should ring alarm bells if a customer who normally pays on credit card is now asking for credit.

Ensure you have all current details of your customer and know who they are.

This is a link to an excellent website that explains how the new system works, I encourage all to have a really good look at it, it affects us all. 

Don't think you will be able to access a consumer's credit report because this is not legal, only those with a credit providers licence will be able to access this information.  The fines are huge for a breach so it wouldn't be worth trying.

All I can do is urge you to have a good poke around the website.

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