By now, we’re used to the idea of getting our money back from a bank, credit union, or credit union affiliate after a transaction.
In some instances, this can be done through the bank’s own automated system, such as checking account alerts, but in others, such systems are used by third parties.
The issue with this type of automated reporting system is that, for most consumers, the reports can’t provide any useful information on what the company you’re paying for has done, according to Paul Condon, a research fellow at the University of Melbourne’s Faculty of Law and the founder of Australian Money Advice.
“In most cases, the report won’t provide enough information to make a reasonable decision on what is fair and what isn’t, and that is one of the things that is driving this industry,” Condon said.
The lack of data on what you’re buying, where you’re spending your money and what you expect to be returned has made this type, or “reactive” reporting, a popular tool in the industry.
According to a recent report from Credit Suisse, in the second quarter of 2016, Australia’s consumer credit markets grew by 8.7 per cent, with an average of $7,865.
However, the average credit score of Australians was just over 580, meaning they had an average credit rating of only 620.
As the number of Australians with low credit scores grew, so too did the number who were able to access the banks’ automated systems.
Credit scores can be a powerful tool for determining whether you’ll qualify for a loan, but the report also found that the information provided by these systems isn’t always accurate.
“People don’t have the confidence in the information they are getting,” Cordon said.
For example, credit scores often don’t accurately reflect your financial status, which could be due to a lack of documentation, poor accuracy of information, or simply poor understanding of the credit score.
The Credit Suise report found that more than 20 per cent of people who used credit scores had their credit scores lowered due to fraud or other misconduct, which may have affected their ability to access loans and make payments.
As part of the report, Credit Suse also revealed that one in five people who use credit scores in Australia report that their scores have been lower due to financial problems, such the death of a loved one or an illness.
The problem with using credit scores for consumer credit reporting, however, is that they can also mislead people into believing that they’re getting a good deal on their credit.
“Credit scores aren’t the only tool that you can use to identify your credit score, but they’re certainly the most important tool in terms of identifying your credit history,” Coorinsaid.
“When consumers report low scores, they’re likely to have an issue with their credit score because they think they’re better off than others and that they don’t need to be worried about their credit,” he said.
While there’s no evidence that reactive reporting is the cause of this problem, the fact that consumers are so quick to use it in the first place means it’s not uncommon for banks to use the reports to justify the charges that they charge.
This is not the first time that the banking industry has resorted to reactive reporting.
Earlier this year, Australia was hit with a major credit-rating scandal, as it was revealed that a number of banks had reported a negative score on their consumer credit reports for many years, despite the fact the scores weren’t accurate.
According the report by Credit SuSE, this happened because they had used “inaccurate” data to report their customers’ credit histories.
“Many of these banks have had a reputation for poor service, poor customer service and poor customer experience,” Cordingell said.
“The problem is that people do not understand how the credit scores work, they don the impact of using the score on how the score affects their ability for a good credit score.”
While the credit-scoring companies in Australia have responded by increasing the accuracy of their reports, consumers have continued to use these reports to determine what they’re entitled to and what is considered a fair rate for a consumer credit card.
In recent years, banks have begun to clamp down on reactive reporting, including a $500 fine that was announced by the Australian Competition and Consumer Commission (ACCC) in March this year.
This means that banks will no longer report a negative credit score on a consumer’s credit report.
While the fines imposed on the banks and the government’s response to the credit report scandal have led to a reduction in reactive reporting in Australia, there’s a clear need for more accurate data.
“There is no doubt that there’s been a rise in the use of reactive reporting for consumer information, but it’s a relatively small increase compared to what is happening elsewhere around the world,” Corry said.
He added that there are several other issues with the way the banks report information to consumers, including