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The Principles of Reciprocity and Data Exchange (PRDE) is a set of industry-developed data exchange rules to support the move of Australia’s credit reporting towards a Comprehensive Credit Reporting (CCR) system. The PRDE facilitates sharing of credit reporting information among signatories by setting up a reciprocal data exchange that has been developed through extensive industry consultation.
“This has been a significant endeavour on behalf of the Australian Retail Credit Association (ARCA) and its members, including Experian, and we are pleased that the ACCC has finalised its part in reforming the credit reporting system in Australia,” Experian managing director of credit services and decision analytics David Grafton said.
“The authorisation of the PRDE represents a significant milestone in achieving a reciprocity framework to standardise the exchange of credit information between credit reporting bureaux and credit providers, ensuring fair and appropriate access to critical decision-making data within Australia’s credit reporting system.”
Experian has been a long-standing advocate for both the economic and public policy benefits associated with the comprehensive credit reporting environment.
“We have over many years and in many jurisdictions, worked closely with our customers and the regulators to develop a data sharing framework that is not only demonstrably fair, but is also beneficial to consumers, the credit industry and the economy as a whole,” said Mr Grafton, who was a founding director of ARCA and a key proponent of the PRDE framework prior to joining Experian.
According to Mr Grafton, the authorisation of the PRDE will provide a level playing field as all credit provider organisations (large or small) have an incentive and obligation to share information like-for-like, improving the overall transparency, consistency and fairness in the credit reporting system.
“The PRDE is critical to realising the benefits of comprehensive credit reporting,” he said.
“It creates an open, transparent and standardised system for dealing with the new credit reporting data.”
This will create confidence in the integrity of the credit reporting system, and provide incentives for credit providers and credit reporting bureaus to participate in CCR, he added.
[Related: ACCC seeks credit reporting transparency]