Document ID: chunk:federal_register_of_legislation:F2024L01251:clause:2_16:p2
Version: federal_register_of_legislation:F2024L01251
Segment Type: clause
Provision Reference: sch 2 cl 16 (pt 2/3)
Character Range: 77157–80087

the individual has entered.

Restrictions on the disclosure of credit reporting information to assist individuals to avoid default
 (5) A credit reporting body must only disclose credit reporting information to a credit provider, for the purposes of enabling the provider to assist the individual to avoid defaulting on his or her obligations in relation to consumer credit provided by the provider to the individual where either:
 (a) the credit provider confirms to the credit reporting body that it is aware of circumstances that reasonably indicate that the individual may be at significant risk of defaulting in relation to those obligations; or
 (b) the credit reporting body is aware that an event has occurred in relation to the individual that is an event of the kind that the credit provider has identified could, if it were to occur, reasonably indicate that the individual may be at significant risk of defaulting in relation to those obligations.
Note: Section 21H of the Act permits credit providers to use credit eligibility information about an individual (that is disclosed by a credit reporting body) to assist that individual to avoid defaulting on their obligations under credit provided by that provider.

Disclosures to individuals where credit reporting information is used to assess an application for credit
 (6) Where a credit provider obtains credit reporting information about an individual from a credit reporting body and, within 90 days of obtaining that information, refuses an application for consumer credit made by the individual (whether alone or jointly with other applicants), the provider must provide a written notice of refusal that:
 (a) meets the requirements of subsection 21P(2) of the Act;
 (b) explains the individual's right to access their credit reporting information without charge during the 90 days following the date of the credit provider's notice of refusal and how to request the relevant credit reporting body to provide access to that information;
 (c) contains a statement to the effect that it is important for individuals to be proactive in checking the accuracy of the credit reporting information that credit reporting bodies hold about them;
 (d) states that the credit provider relies upon information from a number of sources when deciding whether to refuse consumer credit including information provided by the individual and credit reporting information disclosed by one or more credit reporting bodies;
 (e) provides information about factors that are often taken into account when refusing credit, which may include:
 (i) the adequacy of the applicant's level of income and other resources to meet repayments of credit;
 (ii) the extent of the applicant's indebtedness and other commitments;
 (iii) the security of the applicant's employment; and
 (iv) the applicant's credit history including previous bankruptcy, defaults, serious credit infringements, high