In response to a request by the Commonwealth Attorney-General, the Australian Retail Credit Association (ARCA) has announced it will make an application to the Office of the Australian Information Commissioner requesting the Credit Reporting Privacy Code (CR code) be varied so that the five day grace period for late payments recorded on a consumer’s credit report is extended to 14 days.

Currently clause 8.1 of the CR Code states that:
(a) consumer credit is overdue if, on the last day of the month to which the repayment history information relates, there was at least one overdue payment in relation to which the grace period has expired; and
(b) the grace period allowed by the CP for an overdue payment must be at least 5 days, beginning on the date that the CP’s systems first classified the payment as being in arrears.

Defaults can only be recorded on a person’s credit history if the payment is more than 60 days overdue, is for a debt of more than $150, and the person has received written notifications prior to the listing of the default.