SocietyOne has joined other fintech lenders including RateSetter and Nimble in making positive consumer credit information public before the official start of the CCR.

Of the four big banks, NAB has announced it will start providing positive consumer credit data from February 2018, while CBA has stated it will do the same for its home loan customers before the end of 2018.

At present, only negative information about consumer credit records are publicly reported (namely defaults, the number of inquiries and court judgements) which is then used by lenders to assess consumers for loans.

Under the comprehensive credit reporting (CCR), it has been proposed that positive information be reported as well, including the date an account is opened or closed, the type of credit facility and the last 24 months' repayment history.

Approximately 15 credit providers are understood to be participating in the CCR in 'private' mode, according to SocietyOne.

SocietyOne chief executive and managing director Jason Yetton said the move towards more positive credit reporting would empower consumers.

"SocietyOne began the move towards this when we started operating five years ago by using a customer’s credit score to tailor an interest rate on a personal loan to their own particular financial circumstances," Mr Yetton said.

"When CCR comes into full force sometime next year, Australia will have finally caught up with the vast majority of developed and developing countries, including the UK and the US, where positive comprehensive credit reporting has been the norm for decades and has been shown to benefit consumers, providers and their economies as a whole.

"Not only could these changes help individuals, I also believe they will also stimulate competition across key sectors of the Australian economy and support sustainable growth well into the future."

 

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