Media Updates
Arca Media Release: How Australia compares to the UK’s credit reporting system
By Jackie Keogh, Independent Chair of the UK's Credit Information, Interim Working Group
Globally, credit reporting is undergoing a significant shift, with countries like the UK and Australia adopting distinct governance models to manage consumer data and credit information. I’ve observed stark contrasts between the two nations’ approaches. Both face emerging challenges, such as integrating Buy Now, Pay Later schemes, and a push for greater consumer involvement in governance.
What are the main buy now pay later apps in 2024?
In June, the government announced that buy now pay later would be brought under the Consumer Credit Act and regulated as a form of credit, an announcement welcomed by Arca’s CEO, Elsa Markula, "The regulation of buy now pay later is just about adding to the clarification that buy now pay later is a form of credit where a form of responsible lending obligations will apply. It also means that we will see other features like credit checks become standard for buy now, pay later products."
A win for consumer privacy with new credit reporting code
The Office of the Australian Information Commissioner (OAIC) recently announced changes to credit reporting that will see increased protections surrounding credit information.
Introductions to the Privacy (Credit Reporting) Code 2024 (Credit Reporting Code) will set a new standard in the way Australians’ credit information is handled, in the hopes of boosting privacy.
Arca-developed credit reporting code approved by privacy commissioner
Arca welcomes the announcement by the Office of the Australian Information Commissioner (OAIC) today that it has approved the updates to the Privacy (Credit Reporting) Code requested by Arca.
The updates provide for new rights for consumers, and will drive more consistent practices across the credit industry.
CDR to be reset
Assistant Treasurer and Minister for Financial Services, Stephen Jones MP, has announced that the federal government will reset the Consumer Data Right (CDR) in order to deliver “better consumer outcomes”. According to the minister, CDR has the “potential to deliver real economic transformation” and said that the former government’s “poor execution” has meant that the cost to implement CDR into businesses is too high.
How to choose a credit limit for your credit card
If you're applying for a new credit card, you may have the choice between requesting a specific credit limit or letting the lender offer you one. You can also request a credit limit increase or decrease on your existing card. Ideally, you want to choose a credit limit that allows you to pay for the things you need, while also remaining affordable so it doesn't put pressure on your budget.
“Use cases for the CDR are almost unlimited”: Arca
Michael Blyth, general manager for policy and advocacy at Arca told Digital Nation, “The use cases for the CDR are almost unlimited; if the system can earn the trust of consumers.” “Before that can happen, businesses must be convinced that investing in the CDR system as a data user is worthwhile. “Lending and credit-related uses are the best way to promote adoption by businesses and consumers."
Arca proposes credit reporting system modernisation
25 June 2024 / MPA news
Arca, the industry association focused on credit reporting and consumer data, has submitted 36 recommendations to modernise Australia’s credit reporting system. The recommendations, submitted to the Review of the Credit Reporting Framework under Part IIIA of the Privacy Act, aim to adapt the system to meet 21st-century demands and support Australians effectively.
'Expand credit reporting': ARCA
24 June 2024 / Banking Day
The addition of more detailed consumer data, improved regulation of credit repair services, increased credit reporting participation from lenders, telecommunications and utility providers, and Buy Now Pay Later services are all needed if Australia's credit reporting system is to be effectively modernised, the Australian Retail Credit Association says.
'Save our BNPL sales' cry ARA
4 June 2024 / Banking Day
The government must be wary of drafting the final version of this bill in a manner that either stifle, or fails to allow for, innovation, the Australian Retail Credit Association said in its submission to Treasury. “The reform package appears to be driven by a focus on the types of BNPL currently available” Michael Blyth, wrote in its submission.
What will the Government’s ‘Buy Now Pay Later’ regulations mean for retailers? (and shoppers)
5 April 2024 / RetailBiz
Over the past decade, Buy Now Pay Later (BNPL) services such as AfterPay and Zip Pay have become synonymous with offering consumers a sense of improved convenience and flexibility when it comes to payment options. Despite their popularity, the absence of regulations in the BNPL industry has raised concerns about the potential financial risks that these services can have for consumers.
53% of women experience financial stress, study shows
11 March 2024 / Herald Sun
Arca's CreditSmart/YouGov research on women's financial burden has been featured by News Corp in major metro papers nationwide and was originally published by Body+Soul. Arca CEO, Elsa Markula, highlights that women bear the brunt of financial stress due to multifaceted roles. Juggling professional duties, caregiving, and financial management, they're unsung heroes.
‘Like a credit card’: Buy now pay later facing big changes
13 March 2024 / news.com.au
Treasury released draft BNPL regulations for consultation. Arca's Elsa Markula recently discussed the details of the proposed regulations with news.com.au . While the regulations set minimum standards for negative and partial credit checks for BNPL, Arca encourages BNPL providers to go further and move to sharing payment history for BNPL accounts to promote greater financial inclusion, particularly for young consumers.
Arca backs review of credit reporting law
28 February 2024 / MPA Magazine
Arca has welcomed the government’s announcement of an independent review of Australia’s credit reporting framework.
“This review of the law is long overdue,” said Richard McMahon, General Manager for government and regulatory at Arca. “It’s been 12 years since the law covering credit reporting was put in place, and a lot has changed since then.”
Australians are managing cost of living pressures but credit awareness gaps exist
14 December 2023 / CreditSmart Media Release
Australians are taking positive steps to manage cost of living pressures but are overlooking key protections that can benefit their credit health, a recent research study conducted by consumer education website CreditSmart has found.
Arca consulting on changes to improve credit reporting
13 November 2023 / Arca Media Release
Arca is consulting on proposed changes to the Privacy (Credit Reporting) Code for public feedback, which aim to better protect a consumer’s credit report and ability to access future credit.
Changing credit for the better - supporting people with knowledge and simpler processes for a safer, fairer future
October 2023 - Thriving Communities Partnership / Blog Spot
Written by Michael Blyth and Richard McMahon
In today's uncertain financial environment, an increasing number of Australians are experiencing significant financial difficulties, often spurred by rising living costs and soaring interest rates. As service providers, it is our responsibility to equip ourselves and our customers with the knowledge and tools necessary to effectively face these challenges.
Financial pressures affecting women and men differently
19 September 2023 - Financy / Article by Elsa Markula
A new study has revealed the stark behavioural differences between men and women when it comes to financial pressures in the current economic environment. The research by the Australian Retail Credit Association and YouGov found that women are less confident than men in their financial future for the next 12 months and in their financial futures more broadly.
Podcast: The importance of credit health during the cost of living crunch
30 August 2023 - Money Magazine’s Friends With Money Podcast #114: The credit crunch
The cost of living is continuing to put a strain on the finances of many Australians, but how is it impacting our credit health? On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Geri Cremin, credit reporting expert at CreditSmart, to discuss the importance of credit health during the cost of living crunch.
Brokers hold key position in assisting borrowers in hardship
5 September 2023 - The Adviser /Article by Josh Needs
As the “point of contact” between the borrower and lender, brokers have an important role in helping those who receive hardship assistance when required, a law firm has flagged.
Brokers have a key role in helping clients receive hardship assistance when needed and protect their credit report, according to the Mortgage & Finance Association of Australia (MFAA).
How to navigate the end of your fixed rate mortgage
21 July 2023 - Money Magazine / Article by Elsa Markula
You're in a fixed-rate mortgage. Finances are tight. Your fixed rate period is coming to an end. You've got a letter from your bank telling you that once the fixed rate ends, your payments are going to increase, by a lot.
What steps should you take to navigate the impending changes?
Australians' resilience shines through in the face of financial stress
4 July - CreditSmart Media Release
Recent research conducted by CreditSmart, has found that Australians are taking charge of their financial well-being despite the challenges posed by shifting personal finances. The research analysed the credit habits, attitudes, and behaviours of nearly 1,500 Australians, and highlighted the remarkable level of resilience and determination in the face of rising cost-of-living concerns.
TCP is a not for profit organisation that enables collaboration across multiple sectors including business, academia, government, NGO’s and those with lived experience. TCP’s goal is to see everybody have fair access to the modern essential services they need to thrive in contemporary Australia.
Ordinary consumers ‘adept’ at using buy now pay later services
22 May 2023. Sky News interview with Elsa Markula
Arca CEO Elsa Markula says nearly 50 per cent of all Australians have used a buy now, pay later product.
Ms Markula said ordinary consumers are quite “adept” at using the services and enjoy the “technology on offer” that may not be present with traditional credit providers.
'Financial hardship': The tough admission that can make your life easier
26 April 2023. Money Magazine Article by Elsa Markula
Rising interest rates and an increase in the cost of living are biting into the hip pockets of Australians, so it’s important to know that support is available to help you get your finances back on track.
Government dragging its feet regulating BNPL sector, causing more grief for the vulnerable
16 March 2023 - Michael West by David Gilchrist
Only a few years ago, Buy Now Pay Later was hailed as the ultimate in consumer credit innovation. The current reality is massive losses for the providers while cost-of-living pressures escalate, and the most vulnerable consumers suffer most.
Arca moves to protect consumers, reaffirms support for BNPL regulation
27 January 2023 - Mortgage Professional
Arca reiterates its position that Buy Now Pay Later (BNPL) should be regulated as credit to protect consumers from harm. In its submission to Treasury’s Regulating Buy Now, Pay Later in Australia consultation process, Arca maintains its long-held position that BNPL is credit and should be regulated as such under the National Credit Code. BNPL is already credit under the Privacy Act definitions.
Call for affordability checks, credit score reports on BNPL
25 January 2023 - The Australian / Article by Joyce Moullakis
Affordability checks and credit score reporting should occur on all buy now, pay later accounts to protect against consumer harm, with the proviso that smaller ticket purchases have a slightly simpler set of regulations.
That's the view of the Australian Retail Credit Association. Combined, Arca's Members account for more than 95 per cent of all regulated consumer lending in Australia.