New Credit Reporting Privacy Code

Some parts of the new Credit Reporting Privacy Code, which applies to all businesses in New Zealand that gather and sell credit information, took effect as of 1 April 2005. The Code has implications for credit providers as well as credit reporting businesses.

The Office of the Privacy Commissioner has developed the Credit Reporting Privacy Code in order to introduce some formal controls over the collection and use of personal information by credit reporting businesses.

The main objectives of the Code are to improve the accuracy of credit reporting, to reduce opportunities for the misuse of credit information, and to encourage effective complaints handling procedures.

The Code is to be phased in, with some requirements taking effect on 1 April 2006. However, as of 1 April 2005, credit reporters have been required to:

1. provide free access by individuals to their own credit information; and



2. have clear, fast and effective complaints resolutions procedures.

From 1 April 2006, credit reporters must also:

1. proactively improve standards of accuracy;



2. ensure individuals have information about their rights; and



3. prevent unauthorised access to credit information.

The Credit Reporting Privacy Code has clear implications both for credit reporters and for consumers, but credit providers such as banks are also affected.

In particular, credit providers wishing to use the services of credit reporters will (before 1 April 2006) need to sign subscriber agreements under which they will be required to explain clearly to their customers what happens to personal information when a credit check is done.

The Credit Reporting Privacy Code is legally enforceable.

For more information, see www.privacy.org.nz.

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