1 Feb 2011, 09:00

A man received final demand letters from a credit agency about a tenancy debt that he did not owe.

In an attempt to clear his name, the man requested information from the credit agency about the alleged debt. The credit agency refused him access to this information stating that if the man was not the debtor, the disclosure of the true debtor's details would be in breach of the Privacy Act, and would involve the unwarranted disclosure of another individual's affairs. The credit agency suggested to the man that he provide it with a copy of his driver's licence so it could verify his identity against the details it held on the debtor. The man provided the details of his licence. Based on this, the credit agency still believed its information was accurate and the man was the correct debtor.

The man complained to our office that the credit agency held incorrect information and that he had been denied access to that information. His complaint raised issues under principles 6 and 8 of the Privacy Act.

Principle 6

Principle 6 provides individuals with the right to access personal information held about themselves. However this right is subject to a number of exceptions contained in sections 27 - 29 of the Privacy Act.

The credit agency argued that if the man was not the debtor, the information it held was not his personal information. Disclosing the information would therefore involve the unwarranted disclosure of another individual's affairs.

The credit agency accepted the possibility of mistaken identity and suggested that the man provide a copy of his driver's licence or passport in order for it to verify that he was the debtor that it was seeking. The man argued that he should not have to disclose his personal information to the credit agency in order to prove his identity.

As neither party were willing to provide the other with information that would resolve the issue, we suggested the parties provide the information to us for our scrutiny.

The details of the man and the debtor were similar. Both were born in the same month and year and shared the same first and last name. However, the man's name was spelt slightly differently from the debtor's, and his driver licence number was different.

These discrepancies raised questions about the accuracy of the information that the credit agency was relying on to pursue the man.

Principle 8

Principle 8 requires agencies to take reasonable steps to ensure that personal information is accurate, complete, relevant, and not misleading before using that information.

Although the credit agency noted the discrepancies in birth date and spelling of the names, the private investigation company used to track down the man told the credit agency that it was not uncommon for debtors to use aliases or provide false details to avoid payment of debt. Accordingly, the credit agency believed that it had taken reasonable steps to ensure the accuracy of the identity of the man as the debtor.

In a final attempt to verify the man's identity, he authorised us to forward a copy of his driver's licence photograph to the real estate agent who had met the debtor during the tenancy dispute from which the debt arose.

After a copy had been forwarded to the real estate agent, the agent confirmed that the man was not the debtor involved in the tenancy dispute.

Once we confirmed to the credit agency that the man was not the debtor, the credit agency apologised to him and assured him that it would stop pursuing him.

Because the information held by the credit agency was not the man's personal information, he was not entitled to it under principle 6.

On that basis we discontinued the investigation.

July 2011

Access to personal information - Credit agency refused complainant access to information - principle 6

Accuracy of information - Identity of debtor in dispute - failure by credit agency to check accuracy of information - Privacy Act 1993; principle 8