Dated 10 November 2002
This document is at http://www.privacy.org.au/Papers/SubmnFPC021110.html
Paul Armstrong
Director Policy
Office of the Federal Privacy Commissioner
GPO Box 5218
SYDNEY NSW 2000
Dear Paul
Thank you for your invitation dated 1 October to make a submission on the proposed determination.
Whilst we have no specific evidence to offer on the use or abuse of the privilege granted to various miscellaneous credit providers by the existing and previous determinations, the Foundation has a general `in principle' interest in the issue.
We are disturbed by the allegations reported in the paper about credit providers authorised by the determination not complying with the requirements in the Act and Code of Conduct. In particular, the failure to inform borrowers about credit checks and reporting, and of their rights; and the listing of defaults that do not meet the required criteria, if true, are very serious.
We are somewhat surprised that given that these allegations were made some time ago, the paper does not report any activity by the OFPC to check up on potential non-compliance - using your own-motion investigation or audit powers. It should not be left to consumer groups to provide systematic evidence of abuses or breaches - once they have drawn these to your attention it is surely part of your function to investigate?
At the time of the original determination, the Foundation did not object strongly to the authorisation of additional classes of credit provider - the reasoning behind it seemed persuasive, and we naturally assumed that any organisation operating under the determination would be subject to, and generally respect, the statutory requirements and safeguards. If however some of those given the privilege of access to the credit reporting system have been systematically and routinely abusing it, denying borrowers important information, rights and protection, then at the very least those particular organisations should no longer be allowed to participate.
Whether there are grounds for revoking the approval for whole classes of credit provider will depend on the extent of the non-compliance, which only OFPC has any realistic prospect of finding out. We suggest that you urgently carry out a survey of credit providers who have been operating under the Determination, demanding evidence of compliance with the legal requirements.
Only after the results of such a survey have been made available will interested parties such as ourselves be in a position to assess whether we wish to oppose a revised determination outright, or propose modifications or conditions. At the very least we would expect there to be a need for a much stricter monitoring and self reporting regime if any or all of the classes of credit providers are to be permitted continued access to the credit reporting system.
For further information, contact:
Tim Dixon, Director, (02) 9231 4949 or 0411 114411, TimDixon
Nigel Waters, Deputy Chair, (02) 4981 0828, 0407 230342, nigelwaters@iprimus.com.au
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Created: 21 November 2002
Last Amended: 21 November 2002
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