According to Credit Smart, initiative of the Australian Retail Credit Association (ARCA), approximately 95% of all individuals and companies have a credit report. A credit report contains information about the individual/company (such as, last known address, employment details, previous directorships and ASIC information) and lists negative financial information (such as default listings or Court Judgments), as well as how many enquiries have been made by other organisations on an individual’s/company’s credit file to provide a product/service. The individual/company is then given a “credit score” based that alerts other organisations as to whether the individual/company should be provided a product or service. Unfortunately, the effects of a credit score and details of a credit report can be far-reaching and unpleasant.
Credit Reporting is governed by Australian Legislation, in accordance with the Privacy Act 1988 and the National Consumer Credit Protection Act 2009. A credit reporting body is an organisation involved in the handling of personal information to provide other organisations with information about the credit worthiness of an individual/company. The main credit reporting bodies include Equifax, Illion, Experian and Creditor Watch.
Organisations such as banks and other finance companies, retailers, credit unions, utility providers (such as energy and gas), telecommunications carriers and general businesses that provide a paid service are permitted to make an enquiry and/or default listing on an individual’s/company’s credit file. An enquiry is a “look” at an individual’s/company’s credit file to assess whether a service or product should be offered to the individual/customer based on its score, number of credit applications, default listings, length of credit history and credit utilisation, court judgments and repayment information. A default listing is a negative mark on an individual’s/company’s credit report to indicate that they have not paid for a product/service. Court Judgments are listed by Credit Reporting Bodies on their own accord and not by any organisation (this is because court matters are a matter of public record). A credit score is then formed using this information to demonstrate an individual’s/company’s credit risk and likelihood of paying debts.
The Francom Effect
Francom’s distinctive approach ensures all parties involved are satisfied and treated with the utmost respect and consideration. With the hardship assessment support is provided to customers who may be experiencing hardship, acknowledging that each individual circumstance is taken into consideration and solutions vary individually. Further, no interest or fees are charged to an individual, granted a reasonable payment plan is in place. Francom does not actively list, takes over necessarily, works with customers closely to remove any invalid listing based on legislation and consents to remove judgement once a matter has been finalised.
References
- https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/organisations/credit-reporting/about-credit-reporting
- https://www.creditsmart.org.au/comprehensive-credit-reporting/credit-providers-that-currently-participate-in-ccr
- https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports
- https://www.clearcreditsolutions.com.au/2024/06/11/what-is-the-average-credit-score-in-australia/