Comprehensive Reporting
Overview
There is now a timeline for regulatory change for New Zealand to transition from a negative reporting regime to a comprehensive or positive reporting regime. Indeed New Zealand is likely to move to CCR before Australia as Australia requires a change to the Privacy Act to make the CCR transition allowable - this process has yet to be completed and Australia is dependent upon the legislative agenda for passage of the draft bill.
Two amendments to the Credit Reporting Privacy Code namely Amendments 4 and 5, lay the foundation for CCR. Part 1 of Amendment 4 comes into force on 1 October 2011 with Part 2 effective 1 April 2012. The majority of Amendment 5 comes into effect 1 April 2012.
Following a similar industry group established in Australia (ARCA), New Zealand has established the Retail Credit Association industry group. This group is made up of industry leaders and contributors; not only Banks, Finance Companies but also Telecommunications & Utility providers are likely to have input. This group's initial tasks have centred around setting the credit industry data standards for CCR.
Transitioning to CCR expands the information that credit reporters, such as Veda, can collect and provides a more holistic and balanced view of an individuals credit history. This is a considerable change for the credit industry, lenders, consumers and Veda alike however we anticipate the full transition to CCR taking 18 - 24+ months. Veda considers the move to CCR a positive step forward for the credit industry and for New Zealand. Veda is fully committed to ensuring best practice compliance with the OPC requirements for CCR regulation and audit.
Veda has relevant experience at building and implementing comprehensive data credit bureaus overseas in countries such as Singapore, Malaysia, and Saudi Arabia which enables Veda to assist the credit industry, lenders and consumers with the shift to CCR. Veda is committed to ensuring its business is CCR enabled by the implementation date and is proactively committed to assisting and educating parties interested in the CCR transition and in the changes this step change will bring.