Credit law delay angers FinTechs

The FinTech industry body has criticised the government and consumer groups over delays to new comprehensive credit reporting laws, with the legislation now remaining in the lower house for three months.

It comes as a senate committee gave a tick of approval to the bill, despite a number of concerns surrounding its potential impact on vulnerable and disadvantaged Australians.

Treasurer Scott Morrison announced in November last year that the government would be legislating a mandatory comprehensive credit reporting regime, requiring all banks to provide credit information and active consumer credit accounts to eligible reporting bodies.

Under the scheme, banks would have to provide “positive” credit data, including how many accounts have been opened, credit limits and monthly payments, in order to give a “more balanced reflection of credit history”.

The legislation was released for public consultation in February this year. Under the bill, banks would have to have 50 per cent of credit data ready to be reported by September this year, with all data available a year after that.

But a number of concerns have been raised by consumer groups along with pushback from the banks, and the legislation has remained in the lower house since it was introduced in March. This is much to the chagrin of FinTech Australia, with the new credit data providing a wealth of opportunities for local FinTech companies.

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Source: Credit law delay angers FinTechs – InnovationsAus.com