Veda introduces solution for small amount lenders in light of new Responsible Lending Laws
Sydney, Australia - New requirements to Responsible Lending laws impacting small amount lenders (micro-financiers) will be made easier with the introduction of an enhanced credit reporting solution from Veda, Asia Pacific’s leading provider of consumer and commercial data intelligence and insights.
Underpinned by the most complete consumer credit reporting information data set available in Australia, Veda’s enhanced credit reporting solution combines Veda’s credit report and scores with additional data sets specifically designed for small amount lenders.
To assist Small Amount Lenders with meeting the consumer credit requirements of responsible lending obligations under Consumer Credit Legislation Amendment (Enhancements) Bill 2012, Veda’s enhanced credit reporting solution will incorporate two new features, only available to small amount lenders, into the existing VedaScore credit report. These include:
•A flag indicating the number of small amount credit contracts held by the credit applicant within the past 90 days
• Count of the number of defaults listed by Small Amount Lenders
From 1 March 2013, small amount lenders will be required to undertake additional assessments of borrowers in accordance with the NCCP Enhancement Act for an offer of credit or an increase in credit limits - and in particular, assessment of previous lending relationships held by borrowers with small amount lenders. Veda’s enhanced credit report will assist lenders meet these new requirements without onerous changes to their systems and processes, as many lenders already access credit reports as part of their underwriting and responsible lending procedures.