Deprecated: Methods with the same name as their class will not be constructors in a future version of PHP; plgContentOsecontent has a deprecated constructor in /home/creditri/public_html/plugins/content/osecontent/osecontent.php on line 31

Big Changes to Credit Reporting

Written by

It's just unbelievable how much the debt collection industry has changed and now there are more changes about to happen in the Credit Providers arena.

As of the 14 March 2014 new laws will come in that will change the way credit is given to consumers.

This will undoubtedly have an affect on business in general, the changes have been bought in to enable Credit Providers to cross reference consumers credit information. The information provided on a consumers credit file will now include payment history on all credit providers accounts.

What does this mean:

  • late payments will be reported on consumers credit file by credit providers
  • payment history will now include both positive and negative information
  • history of applications for credit will be logged.

What does this mean for businesses?

  • consumers with poor credit ratings may no longer get credit
  • consumers who have multiple credit cards will no longer be able to max out a card and apply for a new one with a different bank
  • the flow on effect for business will be that consumers may not have ready access to credit
  • business will need to be diligent with making sure your information about your customers is correct, in the event a customer fails to pay.

In summary business will need to be aware of those customers who change their payment habits, it should ring alarm bells if a customer who normally pays on credit card is now asking for credit.

Ensure you have all current details of your customer and know who they are.

This is a link to an excellent website that explains how the new system works, I encourage all to have a really good look at it, it effects us all.

http://creditsmart.org.au/ 

Don't think you will be able to access a consumers credit report because this is not legal, only those with a credit providers licence will be able to access this information.  The fines are huge for a breach so it wouldn't be worth trying.

All I can do is urge you to have a good poke around the http://creditsmart.org.au/ website.

More in this category: « Money Smart Left to Fester »

Learn the key elements to making sure you get paid for the work you've done.

Haven't signed up yet? Really?! Well, here's what your missing out on...

  • Full Access to The Seven Steps to BCA Debt in your Business and the 7 Lesson in Accounts Management. +

    There are 7 steps that we walk you through, these steps build your accounts management system which ensures you get paid for the work you have done and you know your customers have the ability to pay you before you do any work for them. Read More
  • Terms and Conditions +

    We walk you through this process to ensure you have the ultimate Terms and Conditions, customised to suit your business. Read More
  • The Debt Recovery Blitz +

    Get your money back into your bank account, we will help you increase cash flow from within your debtors ledger. Read More
  • Core Policy Document Suite +

    You we give you a suite of documents designed to support your Accounts Management System, everything you need to raise your standards in customer service. Read More
  • Current Customer Induction +

    These are your business ambassador’s show them how you you are improving your systems and ultimately the service you provide them.
  • Collateral Update +

    Ok, this is all the annoying little jobs that need to be done, like update the website T&C and Privacy Policies. We have streamlined this for you and give you the html docs to get your web developers to upload. Read More
  • Secure your Assets +

    We help you determine if your business would benefit from the Personal Property Securities Register, which can put you on equal footing with secured creditors like the banks. Read More
  • Debtor Management 2.0 ??? +

    Make sure your customers have the ability to pay you before you have even done any work for them. Read More
  • 1

In a recent survey my clients
identified having a system for

Accounts Management

to be one of the top area's
they struggled with.
LEARN MORE