Comments on: Changes to Consumer Credit Rules Could Increase Australia’s Debt Levels

By: Jack

Jack — Thu, 22 Oct 2009 09:05:42 +0000

Banks are hogs for money. They do nothing for clients that they can’t be caught for. everything they do is for themselves and their profits. They dress it up but the facts are plain, they pirate as much gain as they can. From dodgy fees to overcharged interest, to outright lies.

By: PuntPal

PuntPal — Mon, 19 Oct 2009 22:10:19 +0000

Interesting article, I suppose I thought that the changes were designed to make sure lending was more targetted. By having clearer information, banks can adjust their offering to suit the client’s risk profile. While I agree with Shae that this could lead to some people ve given a bum deal, I think it could also lead to some people getting a better deal. If there is competition (and lets be honest, there is ‘some’ competition – i.e. NAB, Westpac and CBA love it when you decide to borrow $500K off them!) then people that have a good credit rating may be offered better rates than present, simply by virtue of the bank being more confident in its credit assessment.

I say this because I will probably appear more credit worthy. My VEDA file probably has black marks all over it from late phone bills when I was 18 and videos I didnt return for years etc…). But my income, ssavings, payment of CC etc… show I have some financial management skills and if they think my income will grow, I probably appear to be a good client.

So without looking at the changes, I dont agree with the suggestion that clearer personal credit information will be to the detriment of the borrower overall

By: Peter Fraser

Peter Fraser — Mon, 19 Oct 2009 21:15:48 +0000

Mick – Everyone is entitled to check their own credit file at any time without anything being noted. In your position I would check your file to ensure that nothing untoward has happened.
If you advise Veda that you are at a new address, they will update their files, which means that any unsatisfied creditors will find out about the new address in time. If you have been the victim of identity theft it would be a good idea to seek professional legal advice. Ignoring it won’t help. If you haven’t been chased by debt collectors my guess is that all is ok. Veda is not the only source of information for debt collectors.
If you have unsatisfied debts of your own making and can’t pay them, then arrangements can be made. Do some research on part 9 and bankruptcy to see if that would be of benefit. Again you would benefit from professional help with those options.
Mick, a public forum is probably not the best place to discuss personal financial matters. If you wanted to send me an email I will give you whatever information I am able, but again you may need a solicitor to solve the problem if your identity has been stolen.

By: mick

mick — Mon, 19 Oct 2009 11:18:21 +0000

Peter,

The main reason I ask is I lost my wallet a couple of years ago in a taxi. As you can imagine licence, medicare card, Business corporate card etc.
I guess my other area of concern is do the credit agencies get wind that you are sniffing around finding out what is recorded about you as apparently even if you make a casual enquiry about some forms of credit it’s noted that you did not achieve it which in itself could be marked as a negative.

By: Peter Fraser

Peter Fraser — Mon, 19 Oct 2009 11:15:33 +0000

Mick – on the other part of your question, if you give Veda an updated address they are obliged to note your file. I suggest that you phone them and ask some general questions. If you do have a problem with a $50,000 unsecured debt you may need some qualified assistance to make arrangements on your behalf. A solicitor may be a good place to start.

Best of luck Mick.

By: Peter Fraser

Peter Fraser — Mon, 19 Oct 2009 10:50:17 +0000

Mick – If you did a search of your own file and found that there was an incorrect entry on it, you should immediately contact Veda and ask what steps are needed to recitfy the situation. It could just be a mistake (eg two people have the same names) or it could be something more sinister.

Whatever the problem, the sooner you move on it the better. Ignoring it will make it worse. Statutory declarations from people who know you, signature comparisons, and general investigations will help convince Veda and the lenders that it was not your debt.

Mick I hope that hasn’t happened to you. Keep you drivers licence, passport etc secure.

By: Zippy

Zippy — Mon, 19 Oct 2009 10:46:30 +0000

We're seeing interesting changes in the UK too.

By: mick

mick — Mon, 19 Oct 2009 10:07:33 +0000

Peter,

What if you approach Veda and they come back with a report which says you own some credit card company fifty thousand and it’s via identity theft for example.
Is the company at liberty to contact the credit card company to pass on your contact address so they can then persue you? how on earth do you prove your identity has been stolen?

By: cb

cb — Mon, 19 Oct 2009 05:27:36 +0000

Shae, it looks to me that you are hedging your bet too much. You need to take a punt and say whether you expect banks to become more generous, or less generous, in terms of handing out money as a result. Maybe you were trying to say that they will be handing out more money and at higher rates, but it is far from clear, and the only thing I can get out of what you say is that things are getting worse for the borrower, but then there is hardly anything new in that. So, what are you saying?

By: Ciao

Ciao — Mon, 19 Oct 2009 03:59:25 +0000

Perversely the major lenders will always revert to these bureaucracies to endorse larger borrowers credentials on the basis of existing debt service. The more debt they have vision of them servicing the more they will be able to access additional debt. The revenue/income assessments on borrowers (and their investments) and their happy clapping assessments of collateral valuations is the end from which the banks have failed to make rational judgement and have fueled the bubble.