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Credit companies hope a possible change to privacy laws will make it easier for people with a good credit history to borrow money or get a mortgage.
A change to the Privacy Act, which is being reviewed by the Law Commission, could open the door for credit companies to sell both the positive and negative details of people's credit history.
Veda Advantage - formerly Baycorp - holds credit files for 2.4 million credit-active individuals and 800,000 companies in New Zealand, but cannot sell details about positive credit history.
The Credit Reporting Privacy Code does not allow positive reports, because such people should not be forced to reveal private financial dealings. Veda says a comprehensive credit service would benefit responsible consumers, who at present often have to borrow at the same rate as those with a poor credit history.
"When you have a market which is pretty much driven by a negative regime, you seem to have a fixed cost of money," said New Zealand Veda director John Roberts.
"So if you line up for a loan at a bank, you'll have to pay as much as any other person regardless of your credit history. With a fuller picture, the way they approach you as a customer might be quite different."
A review of privacy issues on both sides of the Tasman has Veda pushing for the service, and chief executive Andrew Want has said the service could be a reality in Australia by 2009.
Privacy Commissioner Marie Shroff said the service raised privacy issues and needed to be debated.
"It is vital that there is some public debate about proposals to expand the scope of credit reporting.
"If there is going to be greater availability of personal financial data, then we need to think really carefully about what is necessary and what is relevant. The debate is more complex than just, 'yes, there should be positive credit reporting'."
The Law Commission says it is premature to consider the possibility of positive credit reporting at this stage.
"It's impossible to say whether anything like that [service] could happen here. It's just not on the radar at the moment," said commission president Sir Geoffrey Palmer.
The commission would consider credit issues when it looked at the Privacy Act, which would be the final stage of the present review on privacy.
"The law in New Zealand certainly will not be changed by 2009. There are no recommendations to change it at all at present."
