Lenders lobby to loosen credit rules
Banks and credit card companies renewed their lobbying campaign under which they hope to persuade the federal government to change privacy laws and make it possible for lenders to pool data on loans repaid by borrowers. At present, lenders may only pool data on defaults, or so-called negative reporting. Banks want to engage in so-called positive credit reporting. The industry argues that greater access to personal financial information would allow more sensible lending practices, and avoid loans to those who are heavily indebted but do not admit this in an application for a loan.