Making false statements on credit applications is becoming a habit, with 2.7 million Australians admitting they’re guilty.
A Veda Advantage study found Australians underestimate expenses and credit commitments, exaggerate work history, and overestimate their assets. Interestingly, men are twice as likely as women to tell fibs on their credit applications.Now with credit repayment struggles increasing, Veda Advantage is calling on the Federal Government to increase the credit reporting regime, so credit lenders can have access to current and correct information.
“Defaults have significantly increased in the past 12 months,” says Erica Hughes, Veda Advantage, Information, Services and Solutions general manager. “We are concerned that families and individuals who are experiencing financial hardship may have overcommitted by misrepresenting their financial position on their credit application.
“Privacy laws prevent lenders seeing how much a borrower currently owes. With our study also showing four out of five families are worried about their ability to make payments over the next 12 months, we are concerned that lenders are not getting the best credit information that would allow them to see when a borrower is overcommitted.”
“As Australia enters a tightening credit cycle, lenders need access to the best information in order to manage credit risk and help protect potential borrowers. We are calling on the Government to change the law as a matter of urgency.”
