Arca framework addresses credit corrections involving fraud, hardship, and circumstances beyond a consumer's control
The Australian Retail Credit Association (Arca) has published new industry guidance to support consistent application of Australia's Privacy (Credit Reporting) Code 2025, with a focus on simplifying the corrections process for consumers disputing information on their credit reports.
The guidance is intended to help credit providers and credit reporting bodies handle correction requests in a uniform way across the industry — an outcome with direct implications for mortgage brokers whose clients present with disputed or corrected credit files.
"Correcting your credit information should be consistent and easy to navigate, regardless of which credit provider or credit reporting body a consumer contacts," said Richard McMahon (pictured top), general manager – government and regulatory at the Australian Retail Credit Association.
"Australians can already access their credit report free of charge and request corrections where information is inaccurate or no longer provides a fair reflection of their circumstances. These recommendations help ensure those requests are handled consistently across the credit reporting system."
For cases involving fraudulent credit enquiries, the recommendations encourage organisations to draw on information they already hold before requesting additional evidence from consumers. This is designed to reduce the burden on individuals who may need to correct multiple fraudulent enquiries stemming from a single fraud event.
"The process of correcting a credit report should not create additional stress for someone who has already experienced fraud," McMahon said. "Where appropriate, organisations should work together, make use of information already available to them and avoid placing unnecessary burdens on consumers."
The guidance also addresses circumstances where adverse credit information arose from events outside an individual's control, including domestic abuse, natural disasters, hospitalisation, incarceration, banking errors, and other unexpected events affecting a person's ability to manage their finances. Organisations are advised to assess each case on its merits and consider whether corrections or backdated hardship arrangements may be appropriate.
"No two correction requests are the same, particularly where people have experienced significant life events outside their control," McMahon said. "These recommendations provide a practical framework that helps industry respond consistently while recognising each person's individual circumstances."
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