5 October 2011

In announcing major changes to credit reporting law, Privacy Commissioner, Marie Shroff, highlighted the need for further public education about the rights New Zealanders have when seeking credit. A new Summary of Rights released by her Office is aimed at helping consumers understand this complicated process.

"Credit is the lifeblood of commerce and our modern consumer society, and credit reporting information underpins lending decisions and helps businesses evaluate the creditworthiness of borrowers and manage debtor risk. But credit reporting can be a complicated process that intrudes upon individuals' privacy - and errors can and do occur," said Ms Shroff.

"The Credit Reporting Privacy Code puts some controls in place to ensure a credit reporting system that is fair, reliable, transparent, limited and accountable. But people are not always aware of their rights. The Summary of Rights gives consumers a quick and clear overview of their rights and how to exercise them," Ms Shroff said.

One key consumer right is the ability to access your own credit record without charge and get errors promptly corrected.

"Our Office worked with experts in clear communication to ensure that the Summary was easy to understand and so I was really pleased when the Summary of Rights was recognised with the WriteMark plain English standard," said Ms Shroff.

The Summary of Rights has been translated into Maori, Simplified Chinese and Samoan. "I hope that the translations will help bring key messages about consumer rights to a wider audience," Ms Shroff said.

"The new Summary should help to make people more aware of how the credit reporting system operates. This will be especially important as credit reporting practices change over the next few years. The credit industry and consumer groups, as well as my Office, have a part to play in helping consumers understand their rights. The Summary is a vital foundation for that," Ms Shroff said.

Credit reporters must make the Summary of Rights available to consumers.

ENDS
See FAQs.
See www.privacy.org.nz for all other Credit Reporting Privacy Code material.
For further information contact: Annabel Fordham 021 509 735 or 04 474 7590.

Notes for editors:
Credit Reporting Privacy Code Amendment No 4 was issued on 14 December 2010 and comes into force in two stages - on 1 October 2011 and 1 April 2012. A new Summary of Rights came into force on 1 October 2011. The summary explains:

• who can access your credit report and on what basis
• how to request a copy of your credit report
• how to dispute information on your credit report
• how to complain if you think there is a problem.

Credit Reporters must display this summary on their websites and must provide it to individuals in certain circumstances, including when responding to an individual's request for a copy of their credit report.
The WriteMark Plain English standard is an internationally recognised quality mark written in plain English.

Amendment No 4, the summary of rights and its translations can be obtained from www.privacy.org.nz.

Other changes to credit reporting being made by Amendment No 5 are outlined in a separate media release.