The Office of the Australian Information Commissioner (OAIC) opened an investigation into Veda’s data marketing subsidiary Inivio after a complaint by a data subject. Under the Privacy Act, it is illegal for credit reporting agencies to share the contents of consumers’ personal credit reports for marketing purposes.
Veda stated: “In regard to our Inivio marketing services, information is used within the constraints of the Privacy Act, from sources as permitted under the Australian Privacy Principles, or where consent has been provided by the individual, either directly or through a third party, to be contacted with offers.”
“Individuals may opt out of receiving marketing communications at any time.”
Australia’s Privacy Commissioner Timothy Pilgrim said the law around credit reporting was clear. He stated: “There are strict provisions that restrict those organisations from being able to use that info for direct marketing purposes. It’s just not allowed under the Privacy Act.”
Veda is due to reply to the OAIC’s questions this week.
Veda, which was bought recently by Equifax maintains a database of the credit histories of 20 million people in Australia and New Zealand. Every time a consumer applies for a loan, credit card or utility service, or they default on a debt, Veda enters a record on their permanent credit report.
Source: ABC News