13 AUGUST 2008 - Veda Advantage recommends move to comprehensive reporting.

The Australian Law Reform Commission (ALRC) has recommended the reform of privacy and credit reporting laws highlighting the urgent need for reform in New Zealand. The move has been welcomed by Veda Advantage, New Zealand's largest credit information provider.

The ALRC has recommended that more data be permitted on individual credit files, with the Australian Government committed to implementing reform in the next 12-18 months.

New Zealand and Australia currently operate under a 'negative' credit reporting regime, whereas the vast majority of OECD countries practise comprehensive or positive reporting. With Australia moving away from negative reporting New Zealand will be just one of two OECD countries using this outdated system.

In New Zealand, the Office of the Privacy Commissioner has begun to formally review the Credit Reporting Privacy Code 2004 which contains the current barriers to comprehensive positive reporting. Veda Advantage advocates removing such barriers in a responsible way.

Veda Advantage NZ Country Director John Roberts says, ``The current privacy laws in New Zealand and Australia are not open, transparent or fair. They prevent consumers from building a positive credit history, and stop lenders from making informed decisions about a customer's financial situation.''

Mr Roberts urges the New Zealand government to update and modernise the country's credit reporting regulations.

``Today's credit reports currently provide lenders with just 11 percent of the picture required to identify and predict credit risk. With the economy currently in recession and statistics from our credit bureau showing that defaults and bankruptcies are on the increase, it is time our Government recognises the need for law reform that will offer more protection to consumers and businesses.''

While the finance industry has called for a move to full comprehensive reporting, including information on an individual's account status and payment history over the previous 24 months, the ALRC's recommendations stopped short of embracing full disclosure.

However, overseas experience has shown that a move away from negative reporting to full comprehensive reporting can dramatically reduce the incidence of bankruptcies and insolvency whilst making the market for credit more efficient, transparent and fair.

Mr Roberts concludes, ``We applaud the ALRC for recognising the need for change. However, its proposed reforms do not match up with international best practice. We would hope that our own Privacy Commission and Government acknowledge that it is in New Zealand's best interests that we adopt more wide-ranging changes to our Credit Reporting Privacy Code.''

ENDS About Veda Advantage - www.vedaadvantage.com Veda Advantage facilitates credit reference checks for New Zealand's major banks and lenders, and underpins the ability of consumers to exercise choice in relation to consumer credit products. Veda Advantage holds files on around 97.5% of the individual credit-active population and 100% of the commercial credit-active population in New Zealand. You can apply for a copy of your credit file at www.mycreditfile.co.nz or by calling 0800 692 733. A $23 express delivery service fee is payable if the file is needed urgently, or otherwise the file will be available within 10 working days. For media enquiries, please contact: Thom James, Bullet PR T: 09 306 4004 M: 021 503 181 E: thomj@bulletpr.co.nz