11 Nov 2014
Understanding New Privacy Laws
In essence, the new privacy laws (introduced on the 12th March 2014) allows Credit Reporting Bodies (CRB) participants to provide details of repayment history on individuals and entities. It will also give the public wider access to External Dispute Resolution schemes (EDR’s), of which all industry participants must be members. It is encourages that the public approach EDR’s for clarity of credit reporting. Industry leaders believe that this may slow down the current EDR system.
Mortgage solicitors believe it may take up to 1 year for the laws to be put into full effect by the major banks. This is due to the high cost and complexity involved in introducing the new reporting systems. It is also anticipated that the banks will introduce a new pricing matrix taking into consideration reporting history from other CRB’s. The allowance for another tier of pricing could help subsidize the cost of implementing the new laws.