NAB monitors their customer's Veda file

[Hvr]

Looks like your Veda file is basically an open book for NAB.

Big-four bank NAB is being tipped off each time a business banking customer goes to a rival for a loan, sparking fears about privacy breaches and unfair competition.

...

For years Sarah* did her personal and business banking with NAB. But, in April, dissatisfied with the bank, she applied for a car loan with ANZ, which offered better rates.

NAB is notified when a business banking customer approaches a rival.


She was shocked when NAB emailed her saying its "smarter" systems alerted it to the fact she was "seeking or inquiring for finance elsewhere" and it could whip up "multiple quotes".

Read more: NAB using Veda to track disloyal business customers going to rival banks
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The article notes that other banks may also monitor Veda files of their customers.

Noting what appears to be an open flow of information to credit providers should Veda be prevented from obtaining such information unless consent is provided?

The new style of credit reporting was supposed to be advantageous to customers, it looks like some of their customers, i.e. credit providers have made the most of the opportunity.

 

[travelislife]

Only for business accounts. Don't have same privacy laws.

 

[Dr Ralph]

This was specifically for business customers. Other customers would need to see if they have provided consent in their previous dealings with their banks.

 

[Freq Flier 2013]

So what if the bank has access? They can use this to provide a better offer? Similar to when we call up a credit company and say we will leave if they don't reduce fees ect...
The worst thing is that you still end up leaving the bank.

 

[theblank]

The article notes that other banks may also monitor Veda files of their customers.

the borrower gave permission for the banks to do this when they applied for credit.

 

[albyd]

Some credit providers have a permanent access to our file as "continuing credit providers" and poll it regularly. This has been around for ages as far as I've noticed on my credit file. I'm not a business customer but from memory NAB is one of them, diners club, GE money and Amex also have this status. I always thought was so they could regularly confirm your creditworthiness as well as flag to potential creditors you have an ongoing relationship with them so you don't inadvertently forget to declare them on a credit application. Assuming this last bit is redundant now with comprehensive reporting.

 

[burmans]

Some credit providers have a permanent access to our file as "continuing credit providers" and poll it regularly. This has been around for ages as far as I've noticed on my credit file. I'm not a business customer but from memory NAB is one of them, diners club, GE money and Amex also have this status. I always thought was so they could regularly confirm your creditworthiness as well as flag to potential creditors you have an ongoing relationship with them so you don't inadvertently forget to declare them on a credit application. Assuming this last bit is redundant now with comprehensive reporting.

the borrower gave permission for the banks to do this when they applied for credit.

As someone who was heavily involved in implementing comprehensive credit reporting I think the continuing credit provider flag for personal customers is on very thin legal system grounds for personal customers. The revised Privacy laws considerably restrict what information Credit Bureaus can both store and share and CCPs are not in that list. The traditional reason for sharing CCP info is a responsibility to assist borrowers who are in lending stress.

Of course the bureaus interpret the laws somewhat "liberally" but personally am waiting for the first challenge of this in the courts and far from convinced they'd win this particular case.

Agree the borrower may have given permission but this doesn't trump a law which in general says you can't share info except for some very tightly defined cases (of which in my opinion this is not one).

 

[BillytheFIsh]

It doesn't surprise me and it wouldn't really bother me either. I'd be happy to get more targeted offers from my banks.

 

[theblank]

Agree the borrower may have given permission but this doesn't trump a law which in general says you can't share info except for some very tightly defined cases (of which in my opinion this is not one).

Interesting comment overall, thanks.

Regarding the case of a Bank polling the Veda file, they are not sharing information, Veda is doing the sharing.

Now on that point, I recall an interesting part of the original privacy act legislation, which specified that the 'seeker' of private information was required to have a consent form signed by the individual/s, but the provider of the private information did not.
And this was concisely explained in our (NAB) Procedure manuals. Made for some interesting calls whenever I would ring another bank seeking a credit report, because they would sometimes demand a copy of my consent form, and I would argue that under the legislation I didnt have to show them, and they were breaching the legislation by asking for it (as it contained private info on it). Yes I was being pedantic and deliberately so, in the early days of the Privacy act too many people were 'over' zealous in its application, and in my experiences since, its not any better. Unless the privacy act has changed since 1988.