New credit rules - 5 days late - black mark on credit filecredit file

BG - these people you refer to, who have are struggling so much each month to feed their kids and pay bills - "food, groceries, rent, petrol, utilities (gas, water, electricity), council rates, insurances (building, contents, car, life), medicine, public transport, telco, rego, children's school fees, uniform fees, excursions etc" - jeez, that's pretty much everything.... perhaps they are exactly the people who the bank believes should not be applying for further credit? And since the whole borrowing-of-money system is fairly reliant on banks and other credit institutions, isn't it pretty much up to them to decide who they want to lend money to, and how they want to assess their potential customers?

Or do you think that banks etc should just accept everyone's requests for credit, purely on the 'Yes I promise I'll pay it back" method of assessment?

We occasionally struggle to juggle cash flow at the moment, especially when the unexpected bills come up - the dog's surgery, the a/c that failed, the car that the daughter crashed.... we certainly make do, but it's tighter than we'd like. For that reason, we won't be applying for any more loans/credit at this point.

Beanie Girl, I'm sorry you have had credit applications rejected in the past. It can be a hard pill to swallow, I am sure. Best of luck in the future.
 
hobo said:
Beanie Girl, I'm sorry you have had credit applications rejected in the past. It can be a hard pill to swallow, I am sure. Best of luck in the future.
Click to expand...

:confused: Huh? When did I have a credit application rejected in the past?
Hobo, you sound really nice, perhaps you could point me to a post where I have said that.

By the way, like you and your wife, I am not applying for any more credit either. Done with credit. Going to use our superannuation to buy property.
 
Last edited:
Sorry BG, that was completely my assumption. I guess I couldn't really work out what other reason there would be, to explain why this seems to heat you up so much?
 
hobo said:
Sorry BG, that was completely my assumption. I guess I couldn't really work out what other reason there would be, to explain why this seems to heat you up so much?
Click to expand...

Not heated up, Hobo, just concerned for my fellow beings after I read The Canberra Times article by Jenna Price. Before that article, I didn't even know till then that there was something called the 'Credit Reporting Code' or the 'Privacy Legislation re Consumer Credit'.

I decided to educate myself and went through 3 pages of Google searches and heavens! I didn't even come across the CreditSmart website. So I turned to the source - new Credit reporting (CR) code and new privacy legislation effective 12 Mar 2014.

A day or 2 ago, I was reflecting on the types of info that would be included - all credit cards, personal loans, car loans, mortgages - and I suddenly realised to my horror, that I knew a country that implemented a very similar system recently and the property market went all quiet, then tanked.
 
Oh, OK. Do you mean to say that you believe there was a direct relationship between the implimentation of the system, and the tanking? And do you believe that the same thing will happen here?

Which country was that? I'm sure I need to read more. :)
 
hobo said:
Oh, OK. Do you mean to say that you believe there was a direct relationship between the implimentation of the system, and the tanking? And do you believe that the same thing will happen here?

Which country was that? I'm sure I need to read more. :)
Click to expand...

I'm sorry, Hobo. I cannot name the country. I have friends living in that country who tell me since those credit rules were enforced, even the medium rich find themselves unable to borrow for property investment as they are considered too indebted in mortgages, car loans, personal loans, credit cards (exact same thing they talked about, lol, that's when my memory clicked :)).

DSR works against them plus their age to retirement. Before the shared information came into being, they could 'bank hop' and banks were eager for their business. There were known loopholes and the rich knew about them and used them. Then the loopholes were closed by the peak authorities.
Now every bank had the same information about them and bank had to adhere to strict rules on lending which were enforced and monitored by a peak body. Even if the banks wanted to lend, they are unable to as everybody has a 'credit report' that was comprehensively collated and computerised.
 
I am not following this thread and after reading some posts I don't intend to follow it as well.

I came to know about this credit ratings thing some time ago. And I have missed a number of utility bills and credit card payments in the past. Missed one last week as well. :D

And I don't think lots of people are paying these before due date. If the banks are not going to lend to them, they won't get any business at all. So these changes will take effect slowly. And people including myself will learn.

There are lots of people out there who don't know that too many credit checks affects their chances of getting a loan. And when they really need that loan, they learn.

The same will happen after these changes. Just what I thought.
 
BG, I don't really understand why you don't want to name the country, since I would guess that at this point it's all just past history, no? But that's fine, since the actual country name isn't required I suppose, to understand the concept/progression.

Regardless of which country it was, in regards to the first part of my question, what do you believe? ie Do you believe there was a direct relationship between the implementation of the [new credit reporting] system, and the tanking [of the economy]? And do you believe that the same thing will happen here?

Have a great weekend.
 
Beanie Girl said:
I'm sorry, Hobo. I cannot name the country. I have friends living in that country....
Click to expand...

This is getting ridiculous! You are pretty forward in demanding links and provable justification from other contributors to this post but YOU won't name a country by title that YOU are referencing :confused:

Do you hold that much power or influence that by naming a country you will influence credit markets of the un-named locale..WOW!

This is simple...DON'T GET LOANS FOR THINGS YOU CAN'T AFFORD TO PAY BACK!
Worried about paying you bills late? Take some time to find out when they are due then pay them early. Wow a novel idea hey!! Personal responsibility. A powerful concept. I am sick to death about hearing how everybody is hard done by:
"I pay my bills late and I get a bad credit reference"
"I couldn't afford to pay my bill on time and I get a bad credit reference"
"A lot of minor bills get 'lost' among the paperwork on my desk"
"I find it harsh that you can be a good payer, but go on holidays for a couple of weeks & you can get a black mark"
"I'm not a fan of the small bills and what's not showing as late as I sometimes miss these just due to poor management "

These bills are your responsibility, if you accepted the produce, goods or service you must pay for them in the agreed time frame. I have accepted goods on credit and not seen a bill. Did I just sit there saying "well I haven't got a bill so I don't have to worry about paying for it". No I got an the phone and said "excuse me I haven't seen a bill for that gear I bought, just checking you have sent the invoice so I can arrange payment. Wanted to make sure it wasn't lost in the mail?". If you accept credit it is YOUR responsibility to ensure you make repayments or payment within the agreed terms. Don't get a credit card statement one month, do you think this means you don't have an obligation to make a repayment? If YOU keep your side of the agreement you will never have negative credit reporting issues. Problem solved....next....


:cool:
 
Just found this article today:
From Australian Broker Online

http://www.brokernews.com.au/news/insight/unfair-changes-in-new-credit-regime-179492.aspx
Unfair changes in new credit regime
by External | 18 Sep 2013

Not all changes to credit reporting laws may be good, says Clean Credit's John Dickinson.

Clean Credit was recently featured on Channel 7's Today Tonight; the topic was some of the proposed changes to credit reporting laws.

Since this story went to air we have received many calls from people who are very concerned about how these changes will affect them. A large number feel these changes are unfair. I tend to agree.


....
Click to expand...
 
Last edited by a moderator:
Bills will need to be payed on time, personal responsibility required.

Absolute boon for small business, how many small businesses fail through poor cashflow leading to bankruptcy and employees losing their job.

Overdrafts can be cut and improved cashflow will encourage expansion and increased employment opportunities.

Good to see Beanie Girl pointing out the the upsides.
 
Some borrowers will benefit. If banks start rejecting some customers because of black marks, they still want to expand their loan book. So they might change their lending criteria (qualifying rate, living expenses, % of rent) to lend more to borrowers who don't have black marks.

Fact is, banks can alter their qualifying criteria to reject whoever they want now.
 
it will effect the 'little' guy, not the bigger players.

Once you reach a certain level, personal relationships play an increasingly important role. But the legal entities change over time, eg personal black spots vs clean trust records)
 
alexlee said:
Some borrowers will benefit. If banks start rejecting some customers because of black marks, they still want to expand their loan book. So they might change their lending criteria (qualifying rate, living expenses, % of rent) to lend more to borrowers who don't have black marks.

Fact is, banks can alter their qualifying criteria to reject whoever they want now.
Click to expand...

Now that's thinking outside of the box. There is always a positive and negative impact on everything.
 
turk said:
Bills will need to be payed on time, personal responsibility required.

Absolute boon for small business, how many small businesses fail through poor cashflow leading to bankruptcy and employees losing their job.

Overdrafts can be cut and improved cashflow will encourage expansion and increased employment opportunities.

Good to see Beanie Girl pointing out the the upsides.
Click to expand...

mate you fail finance 101.

Reduction in finance per sei leads to reduction in economic efficiency.

But your logic there should be no credit at all.

Finance is a productivity enhancing mechanism that increases the effectiveness of capital allocation and leads to future increased productivity.

Its when central bankers distort the natural market flow of capital and debt, that real problems occur.
 
You must log in or register to reply here.

Similar threads

redwing
Why You Shouldn?t Pay Bills Late From March 2014
Replies
3
Views
1K
redwing
redwing
R
New Credit Reporting
Replies
9
Views
2K
Colin Rice
Colin Rice
Peter_Tersteeg
Article describing the new credit and privacy laws
2
Replies
25
Views
4K
Peter_Tersteeg
Peter_Tersteeg
G
New Rules For Obtaining Credit in Australia - Welcome to your Credit Score!
Replies
2
Views
3K
Spanish1
Spanish1
P
Structuring a new business - How to?
2
Replies
21
Views
3K
Propagate
P
Back
Top