16Use and disclosure of credit-related personal information by CPs and affected information recipients

16  Use and disclosure of credit-related personal information by CPs and affected information recipients

 (1) This section is made for the purposes of Subdivision D of Division 3 of Part IIIA of the Act.

Note: Subdivision D of Division 3 of Part IIIA of the Act contains a framework restricting the use and disclosure of credit eligibility information. Within that subdivision, section 21H sets out permitted uses of credit eligibility information by credit providers in relation to individuals. Sections 21J to 21N set out permitted disclosures of credit eligibility information to different parties.

Purposes for which credit eligibility information and regulated information must not be disclosed or used

 (2) A credit provider or an affected information recipient must not use or disclose credit eligibility information or regulated information for the purposes of:

 (a) assessing the likelihood that the individual to which the information relates may accept an invitation to apply for, or an offer of, any of the following:

 (iv) a variation of amount of, or terms on which, insurance in relation to mortgage credit or commercial credit is provided;

 (b) targeting or inviting an individual to apply for, or accept an offer of, any of the following:

 (iv) a variation of amount of, or terms on which, insurance in relation to mortgage credit or commercial credit is provided;

 (c) direct marketing.

 (3) Subsection (2) applies despite anything else in this CR Code except subsection (4).

 (4) Subsection (2) does not apply to the following uses of credit eligibility information or regulated information by a credit provider or affected information recipient:

 (a) using the information to assess an application for credit or insurance in relation to mortgage credit or commercial credit;

 (b) where an application for credit or insurance in relation to mortgage credit or commercial credit is received, using the information to assess the application, and offer or invite the applicant to apply for a different product where the original product is unsuitable;

 (c) using the information to exclude an individual from receiving a direct marketing communication on the basis that the individual is at significant risk of defaulting in relation to credit into which the individual has entered.

Restrictions on the disclosure of credit reporting information to assist individuals to avoid default

 (5) A credit reporting body must only disclose credit reporting information to a credit provider, for the purposes of enabling the provider to assist the individual to avoid defaulting on his or her obligations in relation to consumer credit provided by the provider to the individual where either: