It means that positive information such as You had this loan for $x which was repaid on time will now be held on file, as well as negative information.
Previously the only information held was negative e.g. You had a loan for $x and you had defaulted.
Veda Advantage will also be allowed to keep a record of drivers licence numbers.
What does this mean for you?
- We believe that as a creditor credit reports will now be far more useful. It's all very well knowing if someone has been default listed in the past (the old leopard doesn't change it's spots type thing), but it is far more useful to know if someone has made commitments in the past and kept them. Over time this will make it more relevant for you to invest in credit reports for your new clients.
- It would be beneficial to start recording drivers licence details when you get them as identification.
- You need to make sure you have the correct authorities in place to collect information off your clients. Normally this is part of your terms of trade (see our website for more details) but there are other ways to get your clients authority.
As far as we can tell this change came about because people were complaining that information held on Vedas file didn't relate to them. We can understand this. For example how do you tell one John Smith from another?
The only way to do this is by giving everyone an ID number. As New Zealand does not have a national ID card then the drivers licence is our national ID card by default.
We do feel sorry for those without a drivers licence but no system is perfect.
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