This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 13 February 2012, prescribe various matters for the purposes of sections 92A to 92I of the Summary Proceedings Act 1957 (the principal Act), as amended by the Summary Proceedings Amendment Act 2011.
Sections 92A to 92I of the principal Act authorise the routine disclosure of amounts of overdue penalties (default balances) to recognised users (generally credit reporting agencies) for inclusion in credit reports and other documents about the creditworthiness of individuals or organisations.
Section 92B of the principal Act states that the purpose of the disclosure is to provide incentives to defendants who have default balances to pay or resolve the required payments in accordance with that Act. In order to achieve that purpose, sections 92C to 92I of the principal Act authorise, among other things,—
the chief executive of the Ministry of Justice to disclose information about a person's default balance to recognised users to enable them to assess the creditworthiness of the person and to protect themselves against the possible subordination of their security interests; and
the chief executive of the Ministry of Justice to use information received from recognised users (for example, updated information about a person's address, employer, or occupation) to enhance the accuracy and completeness of fines enforcement records and, therefore, to facilitate the collection of fines.
Sections 92A to 92I of the principal Act underpin the other provisions in the Summary Proceedings Amendment Act 2011 that allow a District Court to be given priority over a secured creditor for proceeds from the sale of seized property if the creditor could have used the new credit reporting legislative framework to discover that a default balance was owed by the defendant, before the creditor advanced money to the defendant to finance that property, and some or all of that default balance is still owing by the defendant when the property is seized.
These regulations set out provisions that are required for the proper implementation and operation of the credit reporting measures in the principal Act, including the detailed framework governing the exchange of information between the Ministry of Justice and the credit industry for credit reporting purposes.
Date of notification in Gazette: 3 November 2011.
These regulations are administered by the Ministry of Justice.