The genesis of ARCA occurred in 2004 when it was recognised that there was not a single body or association representing the views of the wide range of organisations that where involved in the provision of credit to consumers and small businesses. At the time it was felt that the advancement of the retail credit markets in Australia and New Zealand were being impeded by the limited information available to lenders when making a credit decision.

An initial meeting was attended by senior credit executives from banks, other financial institutions, telecommunications organisations and credit reporting agencies. The group recognised that shortfalls in laws relating consumer credit reporting in the Australian and New Zealand markets were leading to adverse consequences for all stakeholders.

In 2006, ARCA was formed and began formulating rules and standards to improve existing credit reporting whilst also working with other stakeholders to develop a more comprehensive credit reporting regime.

On 31 January 2006, the ALRC received Terms of Reference from the Australian Attorney-General for an inquiry into the extent to which the Privacy Act 1988 (Cth) and related laws continue to provide an effective framework for the protection of privacy in Australia. As part of the Privacy Inquiry, the ALRC sought views from the public may help the ALRC to understand where the law is working well and where it could be improved.

ARCA provided a response to the ALRC which essentially recommended that a three tier regulatory structure is established:

• Uniform Privacy Principles (UPPs)
• New Privacy (Credit Reporting Information) Regulations that are linked to the relevant UPPs
• Code of conduct (ACCC authorised) that includes all the detailed policies and procedures of credit reporting.

ARCA also recommended that a single regulator responsible for all matters related to credit reporting should be implemented and that this should be the Privacy Commissioner (OPC). Click here for the full submission by ARCA.

On 11th December 2006, the Treasurer announced that the Productivity Commission would undertake an inquiry into Australia’s consumer policy framework and its administration. ARCA provided a submission to the Productivity Commission which reinforced the recommendations made to the ALRC.

ARCA continues to actively work with other stakeholders in the retail credit industry including industry associations, governments, consumer advocates and privacy groups to promote responsible lending and develop industry codes and standards in relation to the use of information across the retail credit industry.