ARCA accept and support the Australian Law Reform’s recommendation for inclusion of four additional categories of personal information in credit reporting. ARCA also encourage the government to move forward simultaneously on inclusion of the fifth data element (i.e. repayment history) recommended by the ALRC.

The government has a rare opportunity to implement one of the most substantial credit reforms for many years. ARCA is keen for the government to seize the opportunity to implement reform to credit reporting within this current term of parliament.

ARCA is conscious that credit reporting has been considered by the ALRC within the framework of reform of the Privacy Act and their recommendations run across a wide range of privacy issues. Any credit law reform package should be based on two principles:

• Better credit information for borrowers and lenders; and
• Better consumer protection

We urge the government to begin the legislative reform process immediately with a target of implementing legislative changes by December 2009.

The industry is aligned through the Australasian Retail Credit Association (ARCA) and will provide support to the government to help implement this important aspect of credit reform. ARCA is demonstrating that the industry is capable of self regulation.

Australia already has a high level of consumer indebtedness and tightening economic conditions are likely to cause financial stress.

Access to a wider range of credit information will allow lenders to make better credit decisions and be more accountable for responsible lending practices.