Dan Richmond - Citigroup - Regulatory issues for credit providers in credit reporting

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Dan Richmond delivered the presentation at 2014 Privacy Reform in Credit Reporting Forum.

From reviewing the journey toward day one compliance readiness to longer term transitional issues, the inaugural Privacy Reform in Credit Reporting Forum assessed all the critical factors industry professionals will want to know regarding the impact of privacy reform on credit reporting.

For more information about the event, please visit: http://www.informa.com.au/privacycredit14

Published in: Business, Economy & Finance
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Dan Richmond - Citigroup - Regulatory issues for credit providers in credit reporting

  1. 1. Regulatory Issues in Credit Reporting Citigroup Dan Richmond Counsel May 2014
  2. 2. Agenda • Default listing requirements • Serious credit infringements • Corrections • Record Keeping
  3. 3. Default Listing • $150 or more • Amount listed must be 60 at least days overdue • New 6Q and 21D letters • Listing cannot occur within 14 days of CP notifying individual that hardship request has been declined
  4. 4. Default listing - 6Q notices • s6Q(1)(b): a written notice: • informing the individual of the overdue payment; • and requesting that the individual pay the amount of the overdue payment • Can be combined with s.88 but only if CP intends to list the arrears and not the accelerated balance • Cannot be combined with 21D notice
  5. 5. Default listing - 21D notices • Must be sent at least 30 days following date of 6Q • Must state amount to be default listed (excluding interest and fees) • Must state that default listing will occur if not cured within 14 days.
  6. 6. Typical Default Listing Process (non-regulated credit) Payment overdue 6Q notice 21D notice Default listing 60 Days 14* - 90 days *consider postage requirements 30 Days
  7. 7. Typical Default listing process (NCCPA Regulated) Payment 30 days overdue S88 notice S.88 expires 6Q notice 21D notice Default 31 Days* 61 days 14* - 90 days *consider postage requirements 30 days
  8. 8. Serious Credit Infringements a) Acts done to fraudulently obtain consumer credit b) Acts done to fraudulently evade obligations in relation to consumer credit c) Acts done which – a reasonable person would consider indicate an intention to no longer comply with obligations in relation to consumer credit; and – credit provider has been unable to contact the individual; and – 6 months have elapsed since last contact
  9. 9. • CP must have default listed individual • CP must attempt to make contact by phone, email and mail – Phone messages must provide contact details and request contact as a matter of urgency – Mailed letters must advise that if 6 months elapses, may be listed as an SCI • CP must take reasonable steps to ascertain new contact details • CP must keep records of attempts to contact • 6 month period runs from later of: – date of 6Q notice; or – last contact Serious Credit Infringements – intention to no longer comply
  10. 10. Corrections • CPs and CRBs have a general obligation to correct credit information or credit eligibility information about individuals • Individuals may request credit providers to correct personal information if: – The personal information is credit information, CRB derived information or CP derived information; and – The CP holds at least one kind of that information.
  11. 11. Corrections Bureau A Bureau B Bureau C
  12. 12. Corrections Bureau A Bureau B Bureau C
  13. 13. Corrections Recipient of correction request must: – Take reasonable steps to correct information – If necessary, liaise with any other CP or CRB – Notify individual of decision within 30 days of request – Notify individual within 5 days of making the decision – Give reasons for any refusal to correct information
  14. 14. Corrections – Notify the individual as to the correction – advise all relevant credit reporting information or credit eligibility information held by the recipient so individual can check whether it has been corrected – Explain that individual has the right to access their information from a CRB and how to do so. Where information is corrected recipient must within 5 days:
  15. 15. Corrections – Notify all CRBs to which it disclosed pre-corrected information – Notify all other recipients that received pre-corrected information within the previous 3 months – Notify any other recipient that received pre-corrected information as nominated by the individual Where information is corrected recipient must within 7 days:
  16. 16. Corrections - Advise individual as to reasons and additional time requested - Request an extension - Advise recipient that they can complain to EDR or Privacy Commissioner - Advise individual as to why - Advise recipient that they can complain to EDR or Privacy Commissioner Where recipient of correction request determines that information will not be corrected it must: Where recipient of correction request requires more time it must:
  17. 17. Record Keeping • 21G(6) “If a credit provider uses or discloses credit eligibility information under this section, the provider must make a written note of that use or disclosure.” • Credit Eligibility Information = – credit reporting information disclosed by a CRB; or – CP derived information
  18. 18. Record Keeping – Credit Eligibility Information • Credit Eligibility Information = – The credit report – Individual components of the credit report (including identification information) – Credits scores, PRS scores, bureau alerts – Anything derived by the CP from such information: • Internal scores • Credit decision?
  19. 19. Record Keeping – other Code requirements • CPs and CRBs must maintain records of: – Where credit related personal information is destroyed – Where CP is a recipient of CEI from another CP: the date, the disclosing CP, a description of the information disclosed and evidence that consent requirements have been met – Where credit reporting information or CEI is disclosed to another CP or CRB: the date, the recipient, a description of the information disclosed and evidence that disclosure was permitted by the Act – consents provided by the individual for the purposes of Part IIIA, the Regulations or Code – any written notice that credit application has been refused where CP had obtained information from the CRB – correspondence and actions taken in relation to ban periods, correction requests, complaints, pre-screening requests and monitoring and auditing • Records must be maintained for 5 years

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