Submission to: Treasury
Joint consumer group submission (led by Financial Rights) into the application of the Consumer Data Right (CDR) to non-bank lenders. Non bank lenders include consumer lease providers, payday lenders, BNPL providers, wage advance companies and others. Extending the CDR to these companies would allow these businesses to circumvent the credit reporting regime and facilitate targeting of high cost finance to people in hardship. We are extremely concerned that the paper does not adequately consider these risks. We recommend a series of reforms including limiting CDR to companies that are part of the comprehensive credit reporting regime and an opt-in consent for jointly held accounts.