PCPD - Proposed Amendments to Code of Practice on Consumer Credit Data

The Privacy Commissioner for Personal Data (the Commissioner) Mr. Roderick B. Woo issues a consultation paper today to seek the public's views on the proposed amendments to the Code of Practice on Consumer Credit Data (the Code).

"The revision aims to reflect the full usage of positive credit data by credit providers through credit reference agencies after the expiration of the transitional period of the last revised Code. Besides, it also aims to alleviate certain operational difficulties in enforcing the Code." Mr. Woo said.

The Code provides practical guidance to data users in Hong Kong in the handling of consumer credit data. It deals with collection, accuracy, use, security and access and correction issues in relation to consumer credit data.

The latest version of the Code took effect on 2 June 2003. It established a new regulatory regime in respect of the sharing of both positive and negative credit data amongst credit providers through credit reference agencies and imposed a 24-month transitional period during which credit providers were barred from accessing positive credit data under certain circumstances. Since the expiration of the transitional period on 1 June 2005, credit providers were then able to gain full access to positive credit data through credit reference agencies in handling credit facilities. For this reason, the Commissioner finds it necessary to revise certain clauses of the Code in a technical manner.

Beside, in the light of practical experience in enforcing the Code, it has also appeared that certain amendments to the Code may be desirable for alleviating certain operational difficulties encountered by the consumer credit industry. For instance, to amend the retention of data in relation to write-off accounts due to a bankruptcy order being made.

"Accurate credit reports are critical for both individuals and credit providers. The proposed amendments to the Code will enhance the accuracy of credit reports and subsequently enable credit providers to make more prudent and efficient credit assessment. More importantly, it will help maintain an efficient and healthy credit environment for social and economic prosperity in Hong Kong." Mr. Woo said.

The public consultation period on the amendments to the Code will commence today until 29 June 2007. Copies of the Report are available from the Office of the Privacy Commissioner for Personal Data at 12/F., 248 Queen’s Road East, Wan Chai, Hong Kong. They are also available for download from the PCPD website (http://www.pcpd.org.hk). Submissions can be forwarded to the Commissioner by post, fax (852 - 2877 7026) or email (enquiry@pcpd.org.hk).