Credit Reporting Framework Issues Paper
On 31 May 2024, AFIA responded to the independent statutory review of Australia’s Credit Reporting Framework Issues paper. AFIA acknowledged the importance of a modern and effective credit reporting framework in Australia that is fit for purpose both now and in the future, that caters to all the requirements of the diverse variety of lenders. An effective credit reporting framework is central to enable timely lending decisions and ensure individual’s personal information is secure and protected. AFIA’s submission highlighted that the credit reporting framework in Australia must support the following objectives:
responsible Lending Obligations: provide effective and timely support to lenders for responsible lending assessments and decisions.
an inclusive financial system: promote an inclusive financial system where consumers have access to a choice of financial products.
promote competition, innovation and technology.
improve data quality: promote consistent, up-to-date, accurate and better data quality, and common data collection and information sharing between lenders.
credible governance arrangements: ensure credible credit reporting/industry governance arrangements which are quick to respond to emerging issues.
protect personal information: ensure the protection of consumer’s personal information.
promote good consumer outcomes.
support a national credit law regime which is principles based, ‘non-prescriptive and flexible’, in line with the objectives of the National Credit Code (NCC).