I'm not clever enough to put the link up, but there was an interesting article whose headlines were on the cover of this weekends AFR. The article went into depth about the new credit reporting regime, (moving from a negative to positive model) which has already been signed off by governement? and how that will affect the way lenders behave. Talking about rate for risk, direct marketing of credit card increases, less scope for fraud etc.
Did anyone else see the article? To my mind it will turn the industry on its head, and I was surprised these changes seemed to have been already approved. It was interesting to note in comparisions done with negative and positve credit reports that both had similar default rates overall, however more loans were written under a positive systme, which was put up as a positive thing. Too bad the research was done prior to the GFC and subprime fiasco....
Did anyone else see the article? To my mind it will turn the industry on its head, and I was surprised these changes seemed to have been already approved. It was interesting to note in comparisions done with negative and positve credit reports that both had similar default rates overall, however more loans were written under a positive systme, which was put up as a positive thing. Too bad the research was done prior to the GFC and subprime fiasco....