The Spot Check on Credit Reporters notes that
between October 2018 and February 2019, the Office of the Privacy Commissioner (OPC) conducted a spot check on the three national consumer credit reporters – Centrix, Equifax and illion.
The spot checks tested credit reporter practice in providing individuals access to their credit information. The spot check was conducted using a ‘mystery shopping’ process. To do this, we arranged through a contractor for 30 people to seek their own credit reports and report on their experience.The 'Headline results' were
- Credit reporters are often failing to meet the 5 working day timeliness rule for expedited reports.
- Credit reporters are generally meeting timeliness for free reports but should be striving to provide reports as quickly as practicable.
- Equifax and illion websites are difficult to navigate and need to more clearly advise consumers they can request a free credit report.
- Equifax’s credit reports should explain in more detail how its credit score is derived and what can affect the score.
The Credit Reporting Privacy Code 2004 (the Code) gives people the right to access the reports that credit reporters hold about them quickly, and to access it for free.
As the information on credit reports is constantly changing, it is important for consumers to have timely and regular access to credit information to check that it is accurate. It can be particularly useful for consumers to check their credit information before seeking credit to ensure it is accurate and to ask for the credit reporter to correct any errors.
Identity fraud is an increasing problem for consumers. Checking credit reports can help identify identity theft, such as credit accounts never applied for, unknown credit defaults or unauthorised credit enquiries. In those instances, consumers can ask the credit reporter to suppress ('freeze') their credit information.
The Code allows credit reporters to charge up to $10 for an expedited report within 5 working days but it also requires credit reporters to provide credit reports for free as quickly as practicable. The spot check tested whether credit reporters complied with access rules and limits on charging as at 30 March 2019.
From 1 July 2019, credit reporters must provide free credit reports within 10 working days (currently 20 working days), and expedited reports within 3 working days (currently 5 working days). ...
From 1 July 2019, Rule 6 of the Code is changing - credit reports requested using the free standard service must be provided within 10 working days (currently 20 working days). Currently only illion is meeting this requirement.
This reduction in the outer time limit reflects the reality that the information is held electronically and is readily packaged. It delivers on a key objective of the Code to enable the unimpeded and prompt access to credit information as a critical measure to promote trust and accuracy.
The changes also help to ensure that consumers at risk of identity fraud can exercise their rights to get an initial credit suppression more quickly, making it more difficult for a fraudster to obtain credit in someone else’s nameThe OPC concludes
This spot check found issues that credit reporters should investigate and address:
- Credit reporters need to address their failure to meet the 5 working day timeliness requirement for expedited reports.
- While credit reporters are generally providing free reports within 20 working days, Credit reporters should be striving to provide reports as quickly as practicable since information is easily retrievable.
- Equifax and illion websites are difficult to navigate and should make it clearer to consumers that they can request a free credit report.
Given that practice is likely to be identical/similar across the Tasman we might encourage the OAIC to undertake such spot testing.
- Equifax’s credit reports should explain in more detail how its credit score is derived and what can affect the score.
