New Credit Reporting

[hello1234]

Hi All,

Does anyone know if the new positive credit reporting system (starting from March 2014?) will reveal all open credit facilities and your limits on those facilities to lenders??

How do you think that impact investors wanting to accumulate their existing real estate portfolios?? Cringing at the thought of having to go through finance/refinance in the future

Thank you.

 

[Bigtone]

Hi All,

Does anyone know if the new positive credit reporting system (starting from March 2014?) will reveal all open credit facilities and your limits on those facilities to lenders??

How do you think that impact investors wanting to accumulate their existing real estate portfolios?? Cringing at the thought of having to go through finance/refinance in the future

Thank you.

going to be a mess.

however hardly any of the banks are in any way ready, although they can report under the legislation very few will initially as they simply don't have the capacity to do it.

 

[Kinnon Bell]

Hi All,

Does anyone know if the new positive credit reporting system (starting from March 2014?) will reveal all open credit facilities and your limits on those facilities to lenders??

How do you think that impact investors wanting to accumulate their existing real estate portfolios?? Cringing at the thought of having to go through finance/refinance in the future

Thank you.

Instead of showing a 'continuing credit commitment' it will show what it is and the limit. It will also encompass bills and whether they're paid on time or late and by how much.

It shouldn't be a problem because you should be disclosing all that information to the bank anyway. To not do so means you're committing fraud. If you can't afford a loan based on your true statement of position and you need to fudge the figures to get it across you line than maybe you shouldn't be applying for finance.

I think the new comprehensive credit reporting will be a good thing once all the potential issues are ironed out.

 

[rotterdam]

Great invasion of privacy of all time in my humble view.

 

[Bigtone]

Great invasion of privacy of all time in my humble view.

it is a perfectly executed scam.

1, create a "need" = use fear and vaguely related overseas examples

2, provide a "solution" = that suits the company more than anybody else

3, get companies to provide all the information for free

4, then charge the companies to get their information back

5, then charge consumer to see what their report shows, alerts etc

6, then do an IPO and be 6 times oversubscribed

7, trade 53% above list price in first month

8, make sure those that 'helped ' get legislation passed are well looked after

9, Cashout , job done , scam completed,

10, leave consumers and companies to deal with mess left behind

well played indeed!

 

[rotterdam]

Bigtone is on the money. well said.

 

[Rolf Latham]

I think the new comprehensive credit reporting will be a good thing once all the potential issues are ironed out.

pricing for risk will become more "reality" based as wellI would expect .

ta
rolf

 

[Peter_Tersteeg]

Long term I think it will be good, but in the short term it could prove difficult.

If you're late on a utilities bill, it could get reported very quickly, literally within a few days. This would negatively impact your score whereas today it would take months with lots of follow ups and chances to correct the problem. Let's face it, most people have received a late notice in the mail for all sorts of reasons, but they usually pay it promptly at that point with no negative effects.

If lenders see this and react unfavourably, it will make it difficult for a lot of people to get reasonable access to finance, whereas today they wouldn't have had this problem.

My hope is that for a reasonable lenders will continue to use their existing systems and metrics for their primary credit scoring. At the same time they can gather metrics for the new protocol so when it's applied, the 'little things', don't end up having a big impact.

Once lenders have sorted this out, their risk analysis should become more accurate which should have a better result overall.

 

[hello1234]

According to the Veda site, there will be 5 x new data fields that can be accessed by the lenders:

• Date account opened
• Current Limit of account
• Nature of credit account
• Date account closed
• Account payment history

 

[Kinnon Bell]

According to the Veda site, there will be 5 x new data fields that can be accessed by the lenders:

• Date account opened
• Current Limit of account
• Nature of credit account
• Date account closed
• Account payment history

Why is that so shocking to you? It's information that's eventually gathered anyway be it via credit reporting or pre and post assessment verifications. Why do you think you need to provide X months statements for your accounts?

 

[The Fence]

Im all for it if it means that the good borrowers/payers get a discount and or the lending they need that will get them way ahead of the mob who dont want to conform.

It should facilitate favourable borrowing conditions on those who conform, and rightly so.

 

[tambourineman]

I think it's interestng that Veda floated at a massive premium after this all went through. Coincidence or something more sinister?

 

[mflying]

i guess that is how they intended!

now they are advertising "credit scoring" product to retail market (billboard, TV, Behind bus etc).