New legislation 'could lead to significant rate changes'

Proposed changes to privacy laws could have a major impact on people who are hoping to take out mortgages, credit cards and personal loans.

The alterations will enable banks and lenders to have greater access to data on a customer's credit history.

This, the Australian reports, could lead to companies offering people different interest rates based on their previous ability to meet repayments and manage their debt.

According to AAP, recent figures provided by the Australian Bureau of Statistics showed the demand for personal loans increased by 2.6 per cent in seasonally adjusted terms in September.

This suggests Aussies are feeling a little more confident about their financial situation, as a lot of people had been reluctant to take on extra debt in the aftermath of the global economic crisis.

The new legislation could come into effect in March 2014 and bosses at credit bureau Veda feel the greater availability of credit profiles will benefit banks and customers.

"Lenders have the information needed to make responsible choices about what credit to extend, to whom, while consumers will be empowered to get the best deals for their own circumstances," commented Veda chief executive officer Nerida Caesar.

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