The Australian Retail Credit Association (ARCA) is the peak Australian body for organisations involved in the disclosure, exchange and application of credit reporting data in Australia.

Members include the credit reporting bodies (CRBs), major banks, other lenders, specialist consumer finance companies, utilities and peer-to-peer lenders.

Following a systemic issue reported in 2018 by the then Financial Services Ombudsman, ARCA reports that its long-standing use of a default code “S” for defaults that had been ‘settled’ has been considered as unlawful by the Office of the Australian Information Commissioner (OAIC).

The OAIC’s view was that, since legislative change in 2014, the default code “P” (meaning ‘paid’) should be used in lieu.

CRBs are working through existing credit listings to make the change and amend the “S” code within their systems.

More information is available here.