Banks to get access to your bills

Sorry if this has been stuck somewhere already. I figured with it being about banks though...


Banks to get access to your bills
15/10/2009 9:30:00 AM
Big four banks

By ninemsn staff and AAP

Banks will be able access information about whether customers have missed payments on utility bills and loans under proposed changes to the Privacy Act.

rest of article here

http://money.ninemsn.com.au/article.aspx?id=875926
 
I hope this doesn't go through - I don't have anything to hide, but really resent this lack of privacy! Fair enough allowing them access to when acc's are closed and loans paid out, BUT they apper to be suggesting much more information then simply this.

And if it does get passed, I wonder when it will come into force and our credit files will contin all this extra info.
 
I'd be happy if they had access to your bills to know what you REALLY spend on the cost of living instead of just deeming you spend X when you really spend X/2.

Telstra sent one of my bills to the wrong house (an old address they had on file that I hadn't lived in since 2002) for 9 months last year and unsurprisingly we didn't pay it because we didn't know it existed, I wonder if that has left us with a black mark ...

... we got it sorted when I was ringing for something unrelated and the operator noticed we had several addresses in their system and fixed it. Then the overdue notices started rolling in.
 
late payments dont necc relate to a credit quality though.

While there is some logic in starting some more useful credit input ( at the moment we have 3 sorts of credit file

Nil
Neutral
Adverse

Digging down to the detail of telco and utilities bills wont do much. However, recording whats been approved and actually accepted in terms of and the repayment history will definetely be helpful

ta
rolf
 
I thought this info showed up as credit defaults on the Baycorp/CRA reports already?

Cheers
Stella

Just imagine the new bank being able to ring your old bank to see the loan statement without your provision - but you ok'd it when you signed the privacy act.
 
Better information will mean lenders will have more confidence in some borrowers(and therefore be more inclinded to provide preferrable terms) and less confidence in others.

Of course, if you felt obliged to fudge the facts to get your loan, you'd be worried, but I'm sure there's no-one like that here.
 
Having seen the amount of info that is available on individuals I don't think there are many secrets left at all these days.

So much info is collected in so many ways - pretty much everything comes with a "we may share this under the Privacy Act" section. Try saying you dont agree & dont want your info shared & see what happens - like there is much choice anyway!

Cheers
Stella
 
We could always have a GESTAPO and a NKVD, so the Police State knows everything everybody is doing.
Oh wait, I almost forgot this country does not have the right to privacy nor that of free speech.
And everybody is a subject of the queen (of Opium) and her idiot decendents.
Am I even allowed to express my opinion of our mongrelized royals? :eek:
 
Better info = better decisions = fewer bad loans = more support for good borrowers AND better shareholder returns.

Everyone's a winner!

In theory at least.

Didn't the country that brought us the GFC have similar credit rating system to that being proposed.

I realise there are no definitive answers to my questions as it is too early yet, but how is repayment history going to be recorded (and/or scored) in your credit file? Does the borrower have transperancy on the scoring system and its calculation?

Does anyone know the detail of how the US system works? I hear of the FICO score and numbers mentioned, but have never seen them explained in detail.
 
Buzz

I was looking at some property in the US and the agents mentioned a FHA loan which I may or may not qualify for due to residency etc. But the terms around it are very interesting - bankrupt, forclosed on, poor credit score....

Think the rates around 5.4% fixed for 30 years.

http://www.zillow.com/fha-loan/#{scid=mor-site-topnavmorfha}
 
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In theory at least.

Didn't the country that brought us the GFC have similar credit rating system to that being proposed.

I realise there are no definitive answers to my questions as it is too early yet, but how is repayment history going to be recorded (and/or scored) in your credit file? Does the borrower have transperancy on the scoring system and its calculation?

Does anyone know the detail of how the US system works? I hear of the FICO score and numbers mentioned, but have never seen them explained in detail.

The US issue was caused by stupidity, not credit reporting/scoring regimes.

When there are institutions buying debt supported by an asset class they are convinced will always increase at a rate greater than their debt, they do stupid things.

When there are mortgage originators that can originate debt without bearing the consequences because they can on-sell that debt to aforementioned stupid people, they also do stupid things.

Stupid is the enemy, not comprehensive credit reporting.

Some background on FICO
 
Stupid is the enemy, not comprehensive credit reporting.

I sure agree with this TF, which means having all that FICO information means nothing, and would not have made any difference.

The issue I have is placing the burden for the institution's stupidity on the private citizens by way of extra impositions and dilution of privacy.
 
I sure agree with this TF, which means having all that FICO information means nothing, and would not have made any difference.

The issue I have is placing the burden for the institution's stupidity on the private citizens by way of extra impositions and dilution of privacy.

There's nothing "new" insofar as the new data is no different to that already supplied by the borrower in their application. It simply allows the lender to check the veracity of the statements made.

I wouldn't blame the GFC. Blame borrowers who lie, get themselves into strife and then call the whaaambulance arguing that the bank should have worked out they were telling porkies.

Ultimately, it is the increased consumer obligations forced upon lenders that opened the door, so you can thank those (including those on this forum) who encouraged people to fudge the figures for creating the imperative.

Enjoy ;)
 
Ultimately, it is the increased consumer obligations forced upon lenders that opened the door, so you can thank those (including those on this forum) who encouraged people to fudge the figures for creating the imperative.
Enjoy ;)

And the institutions like those you work for are absolved for giving out no-docs, ninjas and 105% loans?
Should'nt your educated peers be much more astute and able to tell the difference between sheet & clay? How many hundreds of years of banking does it take? It's in your sig, remember?
I've posted already about the stupidity of borrowing more than you can repay.
But that does not surpass the stupidity of giving them the money.
And ftr, I've never paid LMI and always used min 20% deposits. My posts on this forum are all out in the open.

So are you going to tell me the mortgage institution you work for did'nt do no-docs, ninjas and >100% loans?
That the institutional greed (and that of it's employees) was any different to the borrowers?

Now I'm enough of a historian to know that those who supply the bottomless party hooch never get the blame for the consumption as the consumers supposedly drank it all by themselves. Infact the US & Oz banks have all paid themselves bonuses for their efforts.
It was the same argument in the early 90's, if you were around then. Not to mention the Tech Reck.

And you will be enjoying it just as much as I do :p
 
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