Following further delays of credit reporting legislation, FinTech Australia announced on Friday it is now calling for the legation to continue to progress. The organization reported that despite a proposed July 1st implementation date, the legislation is still in the House of Representatives and there have been recent reports that lobbying by a partnership of consumers advocates and the banking industry are encouraging delays and calling for more time.
FinTech Australia CEO, Brad Kitschke, stated that Australia had fallen behind other established markets in passing the bill and was surprised that consumer advocates would seek to delay something that would benefit consumers, increase transparency and result in more responsible lending practices as well as fairer access to credit.
“We are disappointed that there appears to be another delay in securing the passage of the comprehensive credit reporting legislation. It is ironic that this legislation is being derailed and delayed by some consumer advocates, when consumers will be the overall beneficiary. Had this law been in place, some of the horror stories being heard at the banking Royal Commission would have been avoided. Access to credit, and an obligation by lenders and providers of credit to consider all the relevant information about a person’s ability to meet the obligations of a loan or line of credit should be seen as a good outcome in light of some of the poor practices being uncovered. Under the government’s proposed framework, earmarked to begin from 1 July 2018, major banks will be required to have 50 per cent of their credit data ready for reporting by September 2018, increasing to 100 percent a year later.“
Kitschke also reported concerns by some consumer advocates that access to a comprehensive set of information about a consumer’s credit history would lead to inequality and unfairness were misplaced and he called on the consumer movement to offer alternative solutions instead of calling for a further delay. Kitsche then took the opportunity to question the motives behind some who are calling for a delay by adding
“As to why politicians are suddenly sympathetic to the views of the big banks, this seems rather at odds with many of their public protestations, especially as the issue of how credit is issued and what obligations lenders have sits at the heart of the banking industry’s many misdemeanors against the trust of the Australian public.“