20 July 2009

'It is important for New Zealanders to be proactive in protecting their credit record,' Privacy Commissioner Marie Shroff said today. The credit reporting system is under the radar for most people. A low credit score could impact on individuals seeking loans, housing or employment. It is important for New Zealanders to know they can have free access to their own credit reports so they can ensure that their credit record is accurate.

'I encourage everyone to check their reports regularly,' Marie Shroff said.

'Credit reporting raises many privacy issues. It involves pooling financial and other data on individuals into large databases that are accessed by thousands of businesses and individuals. Inaccuracies can really harm people. Reliability of information is vital for the people credit reports are written about and also those who buy the reports.'

ENDS

For further information contact: Annabel Fordham 021 509 735 or 04 474 7598.

NOTES

Credit reporters collect credit application information and provide that information to businesses (credit providers) when individuals and businesses apply for credit. One credit reporter reports the credit status of around 60,000 people and businesses in New Zealand and Australia per day. With individuals' consent, credit providers, landlords, insurers underwriting a loan and prospective employers (where the position involves significant financial risk) can access credit reports.

Credit reports will include:

• identity information
• a list of the agencies that have accessed the credit report
• information from the property and companies register
• information about any credit defaults, bankruptcies etc.

Access and default information can remain on a credit report for several years. People should report any errors to the credit reporter, who will check whether the information is accurate. If people are not satisfied with the credit reporter's actions, they can complain to the Privacy Commissioner.