Credit agency tipping banks off on business customer activity
(20 June 2016 – Australia) Credit reporting agency, Veda, has provided National Australia Bank with data of business customers seeking lending from the banks competitors, Fairfax Media has reported.
The publication has interviewed a businesses who said she was ‘dissatisfied’ with the bank, and applied for a car loan with ANZ.
The customer told Fairfax that NAB contacted her via email, stating its "smarter" systems alerted it to the fact she was "seeking or inquiring for finance elsewhere", and could provide "multiple quotes".
"I felt violated," the customer said. "I felt there was an invasion of my privacy because they accessed information I've never given them permission to access.
"I have a right to get second opinions and compare lenders but they put me in a very awkward position."
Veda maintains a database of the credit histories of millions of Australians.
Fairfax Media stated that NAB has confirmed it receives alerts from credit reporting agency Veda and other sources when its business banking customers approach competitors about business loans.
A spokesman for Australia's biggest business bank said the tip-offs were used to better manage relationships with customers.
According to the publication, other lenders also use Veda's alert service.
A spokesperson for the credit-rating agency said: "Banks may use many sources of data to manage their relationships with their customers, some of which may be their own, as well as through a variety of third parties.”
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