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What it is?

It is the record of an individuals ability torepay debt that is based on the pasthistory of the persons borrowing and

repaying in conjunction with the entitys

availability of assents and income to payoff future debt.

Where can you obtain your credit

rating from?Credit Rating Agencies such as Baycorpand Veda Advantage can provide onewith their credit worthiness value.


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Since a database is a collection of relateddata to a particular subject, credit ratingagencies utilise databases to record data onan individuals credit rating details (such aspast debt, whether they are punctual inpaying off credit card debt) and personal

information that allows credit ratingcompanies to identify the individual.

Databases are used to store data on anentity through the use of different fieldscontaining information on the individual to

formulate their credit score.


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Some of the data included in acredit rating database for anentity are:

Full Name

Ones interest charged

Debt that needs to be paid(This is amount of moneyneeded to be paid for its use.)

Amount of credit used(This is amount of money usedfrom borrowing)

Ones saving patterns(This is person's abilities to savemoney and repaying money)

Rating of payment of loans(This is in percentage, if its high

then you have more spendingmoney)


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Someone can use previous good credit rate forbefore and bank would still let them borrow if anagencys credit rating database is not up-to-date.

A person managing credit rating databases may

give away a clients personal details to a individualor organisation without the clients information.

A employee from a credit rating agency may foolan individual to provide personal details that arenot necessary to formulate one's credit score.

Repair clinics have been set up to help one withbad credit rating. These so-called clinics offer tohelp you clean up your credit by using loopholes inthe law that only they know about. They may alsopromise to remove negative information from yourfile or to get you a major credit card. These arefalse promises.

Lugi wants to know if

you the manager of the

credit rating database,

could fix a few minor

details on his account


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In Simple Terms.

WHY?

Under the Federal PrivacyAct 1988, credit ratingagencies (they manage thedatabases) MUST ADHERETO A STRICT CONDUCT. If

conduct is BREACHED,PENALTIES OCCUR.

WHAT ARE THE LEGAL

RESPONSIBILITIES OF THOSE

MANAGING THE DATABASE?


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LEGAL OBLIGATIONS

Those who gather information to produce a record on a entity are forbidden toobtain personal information in ones credit information file unless that type of

information is reasonable essential to identify the individual.

CREDIT RATINGNAME: JOHN CITIZENPERSONAL INFORMATION: Medical History Criminal Record Physical handicapcy

Political beliefs Religious beliefs Race and ethnic origins


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LEGAL OBLIGATIONS

Those in charge of modifying databases in credit rating agencies must makesure 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 sheapproaches Commonwealth Bank to get a loan, they inform her that her creditworthiness 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-Anneunable to obtain a loan.

Commonwealth Bank

To: Sally Ann

Loan: $15, 000


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LEGAL OBLIGATIONS

Must secure database against unauthorised access, lossof data and misuse of data.

If this occurs, the Privacy Commissioner (that regulates creditrating agencies) can give out penalties such as fines andcriminal records.

Not allowed to disclosepersonal information to either a

person or organisation other than the individualwhos credit worthiness is measured and those whohave received permission to access from theindividual.

CREDIT SCORE AGENCY

Mr. Howard has a bad creditrating scorepass it on!


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ETHICAL OBLIGATIONS

We live in a society that believes in a high standard of morality. In this societythose managing the databases in credit rating agencies have responsibilities tocarry out their work justly to the information they withhold on others. Many of

these responsibilities are relevant to their legal obligations:


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

They must assure that ones credit rating is accurate.

ACCURATE

CONFIDENTIAL


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THIS PRESENTATION IS BROUGHT TO YOU BY:

What is Credit

Rating?

How areDatabases

Involved in

Credit Rating?

What are the

types of data

stored about

individuals in a

credit rating?

Cassandra

Cassandra

Jhalak


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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


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What are the

ethical

responsibilities

of those

managing credit

rating

databases?

Sheenal

CASSANDRA,JHALAK AND SHEENAL

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