Common Questions
Does the parent/guardian need to sign a privacy disclosure?
The Privacy Act (1988) states that you must advise parents of your intentions to complete a credit check and or list unpaid accounts on a credit reference database. This may be given verbally however we recommend amending you enrolment documentation to include a written statement.
Including a statement in your debt collection letters that advise the customer that if they don't settle the account that their details may be referred to our collection agency and/or listed on the childcare credit reference database.
How long will the listing stay on this database?
Default listings will remain on our database for a period of 5 years. This is a regulated requirement by the Privacy Act (1988).
What if the parent/guardian pays their debt?
You must update the status of the default listed to 'PAID'. The listing will still remain for the remainder of its 5 year period.
Can I find out more about a debt from the centre that has listed a previous default?
Yes, providing the listing centre has explicit consent from the individual who defaulted. Please note: This restriction doesn't apply to a credit reference database as there is no 'direct contact' with the other credit provider.
How do I get explicit consent to discuss the specific of the default?
This needs to be carefully worded in your enrolment forms, an example would be:
I/we agree to [company name] exchanging information about me/us with any credit provider named in my/our application or that may appear on a credit report issued by a credit reporting agency for any of the following purposes:
- To assess my/our application for credit
- To assess my/our credit worthiness
- To provide information to other credit providers as to my credit status where I am in default with other credit providers
- To notify other credit providers of a default by me/us
- The collection of overdue payments
The information can include any information about my/our credit worthiness, credit standing, credit history and credit capacity that credit providers are allowed to give to, or receive from, each other under the Privacy Act 1988.
What does a privacy disclosure do?
This allows you to investigate a prospective parent/guardians credit history, by accessing our online database and or contacting previous centres where parents/guardians have utilised their services.
Who is the governing body?
We comply with the privacy principles as legislated by the Privacy Act (1988) and enforced by the privacy commission.