No compo for wrong credit reports

The Federal Court has dismissed a case against the credit reporting agency Veda Advantage claiming defamation and negligence arising from alleged failure to maintain accurate credit files. The nine applicants alleged that they were refused credit by lenders who relied on incorrect credit reports in Veda's database. The applicants said this was defamatory. They also alleged that Veda was negligent in not meeting its duty of care obligations to ensure the information in its database was correct.

The court also found that there was no general duty of care owed to consumers by Veda. “If Veda owed the applicants any duty of care at all it was a duty directed to ensuring that its database accurately reflected and passed on to inquiring credit providers the very particulars of default which the listing credit providers wished to enter into the database.” And the court said that when it came to negligence the “applicants were not powerless”. The Privacy Act gave them the right to access their files and to ask Veda to make corrections.

Source: The Sheet