This will undoubtedly have an effect on business in general, the changes have been brought in to enable Credit Providers to cross reference consumers credit information. The information provided on a consumer's credit file will now include payment history on all credit providers accounts.
What does this mean:
- late payments will be reported on consumers credit file by credit providers
- payment history will now include both positive and negative information
- history of applications for credit will be logged.
What does this mean for businesses?
- consumers with poor credit ratings may no longer get credit
- consumers who have multiple credit cards will no longer be able to max out a card and apply for a new one with a different bank
- the flow on effect for business will be that consumers may not have ready access to credit
- business will need to be diligent in making sure your information about your customers is correct, in the event a customer fails to pay.
In summary, business will need to be aware of those customers who change their payment habits, it should ring alarm bells if a customer who normally pays on credit card is now asking for credit.
Ensure you have all current details of your customer and know who they are.
This is a link to an excellent website that explains how the new system works, I encourage all to have a really good look at it, it affects us all.
Don't think you will be able to access a consumer's credit report because this is not legal, only those with a credit providers licence will be able to access this information. The fines are huge for a breach so it wouldn't be worth trying.
All I can do is urge you to have a good poke around the http://creditsmart.org.au/ website.