Changes to the Credit Reporting Privacy Code from 1 April 2012 mean that better credit information is now available for businesses wanting to assess the credit risk of their customers. New Zealand has moved to a “positive” credit reporting system which will provide a more complete picture of a customer’s credit history and performance.
What are the changes?
Previously, New Zealand has operated with a “negative” credit reporting system which records defaults, adverse judgments and bankruptcies on individual credit reports. Under the new positive reporting system, credit reports will also information in relation to:
The Code also permits the use of driver licence numbers, allowing for more accurate identity verification and lessening the chance of individuals using different names or spellings to obtain more credit.
What you can do now
With the new changes to the Credit Reporting Privacy Code, now is a good time to check your credit assessment procedures.
The information contained in this publication is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances.
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Mark Sullivan, PARTNER
Caroline Harris, PARTNER
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