CASSANDRA, JHALAK AND SHEENAL PRODUCTIONS

What it is?
It is the record of an individuals ability to repay debt that is based on the past history of the persons borrowing and repaying in conjunction with the entitys availability of assents and income to pay off future debt.

Where can you obtain your credit rating from?

Credit Rating Agencies such as Baycorp and Veda Advantage can provide one with their credit worthiness value.

Since a database is a collection of related data to a particular subject, credit rating agencies utilise databases to record data on an individuals credit rating details (such as past debt, whether they are punctual in paying off credit card debt) and personal information that allows credit rating companies to identify the individual. Databases are used to store data on an entity through the use of different fields containing information on the individual to formulate their credit score.

Some of the data included in a credit rating database for an entity are: Full Name Ones interest charged Debt that needs to be paid (This is amount of money needed to be paid for its use.) Amount of credit used (This is amount of money used from borrowing) Ones saving patterns (This is person's abilities to save money and repaying money) Rating of payment of loans (This is in percentage, if its high then you have more spending money)

Someone can use previous good credit rate for before and bank would still let them borrow if an agencys credit rating database is not up-to-date. A person managing credit rating databases may give away a clients personal details to a individual or organisation without the clients information. A employee from a credit rating agency may fool an individual to provide personal details that are not necessary to formulate one's credit score. Repair clinics have been set up to help one with bad credit rating. These so-called clinics offer to help you clean up your credit by using loopholes in the law that only they know about. They may also promise to remove negative information from your file or to get you a major credit card. These are false promises.

Lugi wants to know if you the manager of the credit rating database, could fix a few minor details on his account

In Simple Terms.
WHY? Under the Federal Privacy Act 1988, credit rating agencies (they manage the databases) MUST ADHERE TO A STRICT CONDUCT. If conduct is BREACHED, PENALTIES OCCUR.

WHAT ARE THE LEGAL RESPONSIBILITIES OF THOSE MANAGING THE DATABASE?

LEGAL OBLIGATIONS Those who gather information to produce a record on a entity are forbidden to obtain personal information in ones credit information file unless that type of information is reasonable essential to identify the individual.

CREDIT RATING
NAME: JOHN CITIZEN PERSONAL INFORMATION:
Medical History Criminal Record Physical handicapcy Political beliefs Religious beliefs Race and ethnic origins

LEGAL OBLIGATIONS Those in charge of modifying databases in credit rating agencies must make sure information on a individual is up-to-date, accurate and not-misleading.

Eg: Sally-Anne paid off her credit card debt 6 months ago, when she approaches Commonwealth Bank to get a loan, they inform her that her credit worthiness is not upto the standard the bank requires to lend out a loan. The inability for a credit rating agency to update their record has left Sally-Anne unable to obtain a loan.
Commonwealth Bank To: Sally Ann Loan: $15, 000

LEGAL OBLIGATIONS <> Must secure database against unauthorised access, loss of data and misuse of data.

If this occurs, the Privacy Commissioner (that regulates credit rating agencies) can give out penalties such as fines and criminal records.
CREDIT SCORE AGENCY

<> Not allowed to disclose personal information to either a person or organisation other than the individual whos credit worthiness is measured and those who have received permission to access from the individual.

Mr. Howard has a bad credit rating score pass it on!

ETHICAL OBLIGATIONS

We live in a society that believes in a high standard of morality. In this society those managing the databases in credit rating agencies have responsibilities to carry out their work justly to the information they withhold on others. Many of these responsibilities are relevant to their legal obligations:

They have a right to provide confidentiality among the individual and themselves by not leaking out the personal details to another person or organisation unless the person who desires to observe the information has proper authority and individuals consent to view.

CONFIDENTIAL

ACCURATE

They must assure that ones credit rating is accurate.

THIS PRESENTATION IS BROUGHT TO YOU BY:

What is Credit Rating?

Cassandra

How are Databases Involved in Credit Rating?

Cassandra

What are the types of data stored about individuals in a credit rating?

Jhalak

THIS PRESENTATION IS BROUGHT TO YOU BY:

How the data in a credit rating can be misused in different ways are? What are the legal responsibilities of those managing credit rating databases?

Jhalak

Sheenal

THIS PRESENTATION IS BROUGHT TO YOU BY:

What are the ethical responsibilities of those managing credit rating databases?

Sheenal

CASSANDRA, JHALAK AND SHEENAL PRODUCTIONS