RateSetter first to sign PRDE
RateSetter has furthered its commitment to comprehensive credit reporting (CCR) in Australia by becoming the first credit provider to become a signatory to the Principles of Reciprocity and Data Exchange (PRDE).
The PRDE is an important set of industry-developed principles that encourages credit providers and credit reporting bodies to share consumer credit information, such as on-time loan repayments, as well as negative data.
We see the sharing of comprehensive credit information as a game-changer for Australian consumers. It will boost competition between lenders, which will lead to a greater supply of low interest personal loans. It will also allow consumers to be rewarded for their good credit behaviour, through wider adoption of ‘risk-based pricing’, which RateSetter is helping pioneer here in Australia.
We also know from the RateSetter group’s experience in the United Kingdom that the additional data available with CCR will help lenders make better lending decisions, improve the stability of lending institutions, and help underpin a stronger economy.
By being the first to sign up to the PRDE, we are encouraging other lenders to quickly adopt this common set of standards and rules to share comprehensive data.
This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.