9Default information

9  Default information

Restrictions on disclosing default information

 (1) Subject to subsection (2), a credit provider must not disclose an overdue payment in relation to consumer credit to a credit reporting body as default information if:

 (a) the individual has made a hardship request (whether via a variation of the terms and conditions of the consumer credit or new consumer credit); and

 (b) either:

 (i) the credit provider is in the process of deciding the individual’s hardship request, including if the provider is waiting upon information from the individual for the purposes of making that decision; or

 (ii) if the credit provider decides to refuse the individual’s hardship request – until at least 14 days after the provider has notified the individual of this decision.

 (2) Subsection (1) does not apply if:

 (a) the hardship request referred to in that subsection is made on a basis that the credit provider reasonably believes is materially the same as the basis on which a previous hardship request was made; and

 (b) the previous request was made during the previous 4 months.

Timing and content of notices relating to default information

 (3) The following requirements must be met before a credit provider discloses default information about an individual to a credit reporting body:

 (a) the credit provider must give the consumer the section 6Q notice and a section 21D(3) notice separately;

 (b) the credit provider must give the section 6Q notice before the section 21D(3) notice;

 (c) the credit provider must not give the section 21D(3) notice less than 30 days after the giving of the section 6Q notice;

 (d) the credit provider must not give the section 21D(3) notice with other correspondence that a reasonable person would conclude materially reduces the prominence of the messages in the notice;

 (e) the credit provider must give the section 6Q notice and section 21D(3) notice by sending them to the individual’s last known address at the time of despatch. The section 6Q notice and section 21D(3) notice may be sent by electronic communication.

Note 1: Under the Act, information is not default information unless a section 6Q notice is provided. Default information may not be disclosed unless a section 21D(3) notice is given.

Note 2: Electronic disclosure should comply with other related legal obligations, including under the Electronic Transactions Act 1999.

Note 3: Either a section 6Q notice or a section 21D(3) notice may be combined with a notice given for the purposes of section 88 of the National Credit Code (Schedule 1 to the National Consumer Credit Protection Act 2009). Where a credit provider combines a notice under the Act with a notice under section 88 of the National Credit Code, all of the requirements set out in the National Credit Code apply to that combined notice.