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New credit laws start today... not that borrowers would know

Nick Bendel 4 minute read

Australian consumers are mostly unaware of the changes to the new credit reporting rules that came into effect today.

Market research firm Experian found that 74 per cent of respondents were not aware of the changes to the Privacy Amendment Act.

Another 61 per cent couldn’t recall hearing from their credit provider about the changes.

Brokers recently told The Adviser they were cautiously optimistic about the new credit rules, which will allow lenders to consider positive credit history as well as negative credit history when considering whether to approve a loan.

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Experian also found that 85 per cent of respondents had never accessed their credit profile and 20 per cent didn’t know what a credit report was.

Another 30 per cent said they would become more loyal customers if their credit provider educated them about their credit report, while 35 per cent said they would become less loyal if they were not properly educated.

Ideal Finance managing director Chrys Kypreos said brokers benefited when their clients understood their credit histories.

“If they know what the issues are beforehand, it would make my life easier, if I put their submission to the bank and then found out from the bank there was a problem with their credit report,” he told The Adviser.

Scott Marshall from The Loan Arranger said the new credit rules were just another piece of legislation brokers needed to discuss with their clients.

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“The clients aren’t expected to be across that. They’re relying on the experts to advise them on any kind of lending requirements. I wouldn’t say I see it as any more challenging than what we’re already doing,” he said.

New credit laws start today... not that borrowers would know
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