Australian Government Attorney General's Department - Privacy Reform – Consultation on Exposure Draft legislation

Redfern Legal Centre supports the proposed requirement that consent be voluntary, informed, current, specific and unambiguous. 

We support the introduction of an overarching requirement that the collection, use, and disclosure of personal information be fair and reasonable.

These reforms provide an important framework for addressing broad and ongoing access to consumers’ financial information. 

However, the Exposure Draft does not provide sufficient certainty about how the requirements apply where a credit provider relies on acceptance of a privacy policy during a loan application to access a borrower’s banking transaction data throughout the life of the loan.

Without clarification, lenders may continue to rely on broad privacy policy terms as authority for ongoing access, leaving consumers to challenge these practices after harm occurs. 

Our casework shows that ongoing access can affect hardship decisions and create particular risks for people experiencing financial abuse.

We recommend targeted legislative clarification and regulatory guidance to ensure that a consumer’s banking transaction data is accessed only where the scope, duration and purpose are fair, reasonably expected, and proportionate