CONSUMERS who make loan payments only five days late will now have the late payment listed on their credit files.
Legal Aid Queensland senior consumer protection lawyer Loretta Kreet said new credit reporting laws could result in consumers struggling to get personal or housing loans for up to two years after the late payment was made.
“The new laws help lenders to easily assess whether a borrower can pay the loan, and no longer rely on a customer verbally verifying how many credit cards and personal loans they already have,” Ms Kreet said.
“However, the new laws report on a borrower’s payment history for the last two years, which means people may have difficulty getting a loan long after a fairly minor infringement has occurred.”
From March 12, the new laws mean credit reporting agencies will have access to more comprehensive information on people such as:
- The type and amount of credit they have sought in applications;
- Credit limits and dates their accounts have opened and closed;
- Two years worth of payment history showing missed or late payments; or
- If any serious credit infrigement has been committed.
“People also need to be aware of credit repair companies fooling people into believing all negative listings on credit reports can be erased,” Mr Kreet said.
“Some credit repair companies are charging up to $1000 to remove each negative credit history listing, but the only way a listing can be removed is if it is incorrect and shouldn’t be there in the first place.
“If a consumer thinks a listing on their credit file is incorrect, they should get legal advice.”
GET AN UPDATE ON YOUR CREDIT FILE, HERE: www.oaic.gov.au