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  1. #1
    Join Date
    May 2004
    Location
    Bay Of Plenty, NZ
    Posts
    3,604

    Default News Flash of Importance to the Rental Property Industry

    I received this by email today. Has anybody else been made aware of this. Pretty disastrous if this goes ahead!!


    News Flash of Importance to the Rental Property Industry

    We are sorry if you consider this spam but are you aware that the Office of Privacy Commissioner (OPC) is planning to outlaw tenant checking and reporting systems, such as our affiliated company's, Tenancy Information New Zealand (TINZ) system, at www.tinz.net.nz, and Veda Advantage (Veda) from storing and reporting anything about Tenancy issues.

    The OPC has powers under the Privacy Act to make their own law/code without any act of Parliament. The Credit Reporting Privacy Code 2004 (CRPC 2004) was such an enactment which all credit reporters have to comply with - TINZ and Veda are creditor reporters to our industry.

    The OPC carry out 2 yearly reviews and this is the latest in the round of constant amendments to this Code.

    If the below amendment is incorporated into the CPRC 2004, which is to take effect on 1/4/2011, it will mean the rental industry will go back to square one -

    You won't be able to pre-check tenants or record when you have had a problem tenant.

    One of the planned amendments is to clarify the word "credit" - only credit accounts can be reported - and thereby, stating Tenancy Tribunal orders, 10 day notices and ratings are not credit accounts under the new definitions. We assume then the Ministry of Justice system will be outlawed as a result.

    We have just been told that we have until 13/8/10 to make submissions.

    We would highly recommend that you look at the attached >template of a prepared document<< , which we highly recommend you immediately complete, under your own letterhead, and get back to us to support our submissions. Please email us at [email protected] or fax us on (09) 6250121.

    If you do nothing ... this may lead to the demise of TINZ and Veda being able help you avoid bad tenants.

    The OPC have indicated they want to bring in positive reporting rather than having the current system of only reporting negative issues, however, you won't be able to promote good tenants by placing good ratings on TINZ as it is not credit information under the definition.

    If you want to view the full Information Paper of the Proposed Amendment No 4 to the CRPC 2004 please >>click here<<
    Patience is a virtue.

  2. #2
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,774

    Default Bad tenants have second chance at your expense.

    Quote Originally Posted by TINZ email
    ***IMPORTANT: The Privacy Commissoner is planning to outlaw tenant checking and reporting systems such as TINZ and Veda from storing and reporting anything about tenancy issues. This means you will no longer be able to pre-check tenants or record when you have had a problem tenant. We have until the 13/08/10 to get submissions in to prevent this law change from happening. Both TINZ and Veda are looking to our clients, the industry, for support. We would appreciate it if you could make your submission using the attached submission template, then email it back to us at [email protected]. If you do nothing, then it may lead to the demise of TINZ and Veda from being able to help you avoid bad tenants.***
    Quote Originally Posted by Template
    Draft submission to OPC For TINZ Customers
    Drafting notes are in italics
    This is to be sent to the email address below before the 13th August.

    On your letterhead


    Credit Reporting Privacy Code Amendment
    Office of the Privacy Commissioner
    PO Box 466
    Auckland 1140
    Email: [email protected]

    Insert date
    Submission on the proposed Credit Reporting Privacy Code 2004 (the Code) Amendment 4
    Introduction:
    In a few paragraphs say who you are; what your business does and (if you consider it relevant) how long your business has been going for.
    State whether you would like to attend the meetings which the Privacy Commissioner holds with submitters.

    Then state what your submission is, change the wording or give examples that occur to you - you can use your own words to rephrase this

    1. Tenancy Information N Z Ltd has alerted us to the proposed amendment to the Code.

    2. We oppose one of the changes proposed – the change to the definition of "credit default information". We submit that the definition of credit default information should remain unchanged.

    3. We believe that limiting the definition of credit default information will lead to less accurate credit checks and credit scores, which in turn will undermine our risk assessments of prospective tenants. The exclusion of some information that we are used to seeing reported will be misleading. That is unfair and economically unsound.

    4. Government debts will be relegated to a second class status -harder to recover and ignored on credit reports. The result of that will be less money recovered and an imbalance in repayments.

    5. We as landlords, are regularly awarded monies for rent and related amounts in Tenancy Tribunal decisions .We believe that we are able to load these as defaults under the Credit Reporting Privacy Code( the Code). We believe that this change will prevent us from doing this.

    6. Yet if we are awarded a sum of money and are trying to recover it we should be in the same position as a person awarded a judgment for a sum of money. The proposed change will disadvantage us in an unfair way.

    7. This will mean that some bills are treated better than others. Debtors who are not strictly in default on a ‘credit account will be able to avoid paying here bills. We believe this is unjust and will lead to some creditors being treated worse than others in an unfair way. Although this is by no means certain we have assumed that the changed definition will be limited by the definition of credit in the Code –
    credit means property or services acquired before payment, and money on loan. Is a tenancy agreement – property or a service? It is both. However the legislation around residential tenancies constrains this and also obliges landlords to go through the Tenancy Tribunal. If the landlords succeed and are awarded monies then although those monies are in compensation for ‘property rights’ and ‘debts’ they may not be within the new definition. We are opposed to this change. It is unfair, arbitrary and wrong. We do not understand the justification for such a change at a time when creditors are under siege. People regularly fail to pay their bills, and tenants who are taken to the Tenancy Tribunal in virtually every case go on to fail to pay.

    Meetings on the Code Amendment

    1. We ask to be included in any meetings on this important topic.
    2. Please contact (insert who should be contacted )
    3. These are difficult times. The proposed change to the definition of credit default information will make it harder to assess risk and to recover debt.
    4. In summary, we submit that the definition of "credit information" proposed in clause 3(3) of the proposed amendment should not be made.

    5. Please contact: (insert details of a contact person and address) if you have questions concerning this submission.

    Check your draft- ensure there are no italics – no drafting notes- and only put in what you are happy with

    Yours faithfully
    Keys {of course, quotation makes it all italics! emboldened has been done} (must lengthen to 10 characters )
    Last edited by Keys; 06-08-2010 at 06:43 PM.

  3. #3
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,879

    Default

    Last I knew, passing statute was
    the prerogative of Parliament, rather
    than the Privacy Commissioner.
    .
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  4. #4
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,879

    Default Some Strictly Defined Situations?

    Where are these defined?
    Proposed Amendment No 4 to the
    Credit Reporting Privacy Code 2004
    (Page12)

    Only certain people can access your report for certain purposes


    The Code limits the people who can gain access to your credit information.
    These will usually be credit providers who are considering your application for
    credit. In some strictly defined situations the information may be made
    available to prospective landlords,
    employers or insurers, to debt collectors,
    to those involved in court proceedings and to certain public sector agencies.
    Your credit information cannot be used or disclosed by a credit reporter for
    direct marketing purposes. Only registered credit providers can have access
    to your credit account information.

    Your consent is required in most situations

    Most credit checks can only take place with your authorisation. This applies to
    access by credit providers, prospective landlords
    and prospective employers.
    Your authorisation may not be required for access by certain public sector
    agencies, those involved in court proceedings and debt collectors. The credit
    reporter is required to log each access that is made to your information and
    will normally disclose this information to you on request.
    Bold emphasis is mine.
    .
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  5. #5
    Join Date
    Jun 2009
    Posts
    310

    Default

    Quote Originally Posted by Perry View Post
    Last I knew, passing statute was
    the prerogative of Parliament, rather
    than the Privacy Commissioner.
    .
    No statute is being changed - the existing statute gives executive power to the privacy commissioner to make changes to regulations as he sees fit, within the bounds of the legislation.

  6. #6
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,879

    Default Semantics

    Thanks - I'd caught up with that when I came
    to appreciate that it was a Code.

    Next, is it something about the way the TINZ
    thing is written?

    Quote Originally Posted by TINZ
    IMPORTANT: The Privacy Commissoner is planning to outlaw tenant checking and reporting systems such as TINZ and Veda from storing and reporting anything about tenancy issues.
    What are "issues?" Do they differ from credit
    reports? Seems a bit muddled, to me, given
    the extract I've quoted above from the PC's
    web site.
    .
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  7. #7
    Join Date
    Sep 2005
    Location
    Upper Hutt
    Posts
    262

    Default Stop press!! Have we all overlooked the fine print

    Proposed Amendment No 4 to the
    Credit Reporting Privacy Code 2004
    (Page12)


    Your authorisation may not be required for access by certain public sector
    agencies, those involved in court proceedings and debt collectors. The credit
    reporter is required to log each access that is made to your information and
    will normally disclose this information to you on request.
    The key phrase is "those involved in court proceedings". The existing Rule 11(2)(c)(v) clearly includes tribunals. All those involved in tribunal hearings fall under this clause, and the clause is not being changed.

    Also Rule 11(2)(a) clearly allows access to credit information for "the purpose
    of enforcement of a debt owed by the individual concerned"

    For the code as it currently stands see:
    http://www.privacy.org.nz/assets/Fil...commentary.pdf

    I can not see wording that prohibits an existing landlord from being a debt collector.

    The discussion document suggests credit providers should be registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (“FSPA”).
    However I see nothing that excludes landlords being registerd as credit providers.
    The Son of Glenn

  8. #8
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  9. #9
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,774

    Default

    Quote Originally Posted by Son of G View Post
    However I see nothing that excludes landlords being registerd as credit providers.
    Individually, or as a group?

  10. #10
    Join Date
    Apr 2006
    Posts
    4,018

    Default

    Last time I looked LLs don't provide credit, they provide accommodation.

    This is going to be absolutely devastating for the rental property industry in my opinion. For those of us who do credit checks, we know exactly how important these checks are in determining the suitability of an applicant.

    Quite frequently we get tenants who have good LL references but have a recently lodged large ($5000+) bad debt. While they have been good payers of rent in the past, this large debt could well impact on their ability to be good payers going forward.

    Also, information gained by a gredit check is not restricted to an individual's creditworthiness. A credit check also reveals previous addresses, which in some cases is far more important that the credit info.

    I will be making a submission.

    Final question: why is this only being bought to our attention now, with a submission deadline of 13 August, when the call for submissions went out on 16 June? I got notification of this from TINZ on the monthly statement I received YESTERDAY - you think that TINZ wouyld be more active when it comes to something that will wipe out their businses.


 

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