The draft legislation for mandatory comprehensive credit reporting — which aims to address the “information asymmetry” that currently gives consumers more access to their credit risk than the credit provider — was released earlier this month, with a consultation on the mandatory regime currently open until Friday, 23 February.
The Treasurer has said that CCR could result in “better deals” on loans, as it will enable lenders to access both positive and negative credit reports — and therefore price loans accordingly.
CRR can help give customers “the right type and amount of credit”
Ahead of the mandatory regime coming into effect, NAB has become the first major bank to start participating in CCR, rolling it out for personal loans, credit cards and overdrafts and with the view of extending it to other products in the future.
It added that “other types of lending” will be included “later this year”.
NAB chief operating officer Antony Cahill commented: “Under comprehensive credit reporting, we now have a more holistic picture of a customer’s credit situation, so we’re better able to make sure our customers receive the right type and amount of credit for their individual circumstances.
“We believe CCR is good for competition and will mean better outcomes for customers.”
Noting that a number of smaller lenders have already begun participating in the scheme and that it will soon become mandatory for the major banks, Mr Cahill said: “We’re pleased to be going live with CCR today, and we look forward to seeing it roll out across the industry.”
NAB first announced that it would be rolling out CCR in October last year, and it has since said that it is phasing its roll-out of CCR to ensure “a smooth transition for customers”.
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.