This submission, from the New Zealand Council for Civil Liberties (NZCCL), concerns the addition of further powers to credit rating agencies proposed in Amendment 5 of the Credit Reporting Privacy Code 2004. Together with Amendment 4 this amendment brings the New Zealand Privacy Code in line with that of Australia. They are designed to provide the credit rating agencies with 'positive' data relating to people's financial transaction history, rather than the 'negative' reporting of the past, which related only to a person's debt history, where the debt had been referrred to a collection agency.
Amendment #5 in effect gives the credit rating agencies the right to collect personal transaction data relating to payment for utilities such as power and telecommunications, as well as credit card transactions, for a period of two years. This data can show not only where a person is in arrears in payments but also where they have a positive payment record.
While the inclusion of 'good' debt management as well as 'bad' debt management is an improvement on data that shows only a history of defaults on payment, NZCCL is concerned that such information can lead to a detailed but inaccurate picture of a person's financial position, and can also be used by debt agencies to target vulnerable people with instruments that can lead to increased debt and financial hardship.