From 12 March 2014, under Part IIIA of the Privacy Act, a credit provider must be a member of an EDR scheme recognised under the Privacy Act to be able to participate in the credit reporting system.
From 12 March 2015, commercial lenders and businesses who make and obtain credit reports and who are not already in an EDR scheme will be required to join an EDR scheme.
Under Privacy Regulation 23, the obligation to be a member of an EDR Scheme does not apply “in relation to the disclosure of credit information by the credit provider if the disclosure is made in connection with the provision of commercial credit” or to energy and water retailers.
The exemption Regulation ceases on 11 March 2015.
Under the Privacy Act reporting provisions, to can gain access to credit reports and list overdue payments and serious credit infringements the Privacy Act requires a business to be a “credit provider”.
But only credit providers who are licensees under Chapter 3 of the National Consumer Credit Protection Act or prescribed by the Regulations and mortgage insurers are able to access repayment history information.
The definition of “credit provider” for credit reporting purposes is wider than the National Consumer Credit Protection Act definition which requires consumer credit providers to be licensed.
A credit provider, as defined in section 6G of the Privacy Act, includes:
• a bank and other ADI’s;
• an entity where a substantial part of its business is the provision of credit,
• a retailer that issues a credit card in connection with sale of goods or supply of services,
• a supplier which provides credit in relation to sale of goods or supply of services where repayment of credit is deferred for at least 7 days,
• a lessor who provides credit in connection with hiring, leasing or renting of goods and credit is in force for at least 7 days.
A securitisation entity is also a credit provider in relation to credit it deals with.
An acquirer of credit becomes a credit provider in relation to that credit.
The following organisations or small business operators are not credit providers for credit reporting purposes:
(a) a real estate agent; or
(b) a general insurer (within the meaning of the Insurance Act 1973); or
(c) an employer of an individual.
