The Official “Mandatory” roll-out date for Positive Credit Reporting or Comprehensive Credit Reporting as it is better known in Government circles, was due to take effect 1 July 2018. The consequences to borrowers of diverse credit histories has been well documented in previous articles so I won’t reiterate the obvious; however; a recent move last week by the Labor shadow treasurer Chris Bowen to call for a 12 month delay to the roll-out may just entrench the big four’s dominance of personal loans.
The new credit reporting rules will arguably help open up the overall lending market, inclusive of mortgage and business loans, by allowing non-bank lenders access to the real insights into individual and company credit histories; information which until now the big four and other banks have tightly guarded.
The CCR as it will be known (Comprehensive Credit Reporting) will require the major banks to not only report when borrowers have missed a payment but when they have made them on time or at all.
Knowing a loan applicants prior credit history will be a game changer for all whilst providing a level playing field for all lenders to better consider risk and reward.
Watch this space, I’m inclined to believe this recent pushback by Labor is just the medicine the banks have been hoping for. Who said “Information is Power”, was it Mark Zuckerberg?
By Richard Aulsebrook