Privacy - the importance of understanding what happens with your personal information

​Technology has become a huge part of our lives, and we are handing over our personal information more so than ever before due to the ease and accessibility that technology brings.  Being able to apply for finance over the phone, internet or email is a fantastic new step towards simplicity. Today I hope to explain the importance of privacy, and why you need to be careful who you release your information to when applying for finance.

If you are applying for finance it is very important to ensure that your details and information are being kept within that financial institution, and not sent onto other parties.

Most lenders and mortgage brokers will have their privacy statement listed on their website. You should view the fine print on these statements to determine if your information will be safe. It is common practice for many intermediaries and mortgage brokers to have generic privacy statements. This is because they deal with a number of lenders.

If a lender or mortgage broker has a generic privacy statement, this might mean that your information is shared with a number of parties.  For example, when you submit your application with a mortgage broker who deals with multiple financial institutions, it is possible that your information will be sent onto many lenders without your knowledge. This can result in your credit rating being affected due to numerous financial institutions enquiries being listed.

Maintaining a good credit rating is very important. If you decide to get a credit card or loan, the number of enquires on your file is one of the key factors determining if you are successful in your application.  If your information is passed onto other parties, and you obtain several enquiries, this could be worrying for a financial institution when reviewing your credit history.

Loans.com.au is the lender, and when you submit your information to us we don’t need to send your information to other lenders as we are your lender. We clearly state our privacy statement on our website, for all customers to view.

When you start looking at applying for finance, whether it be a credit card, personal loan or mortgage, it is important to make sure that your information is safe and not going to be used by any unauthorised parties. Unfortunately, if you don’t read a privacy statement before you hand over your information, your personal details might be sacrificed.

If you are dealing with a mortgage broker or intermediary, ask them who they are sending you loan application to. Make sure they are not sending your application to a big list of lenders, resulting in a number of credit enquires on your file.

To learn more about protecting your personal information and knowing your privacy rights, you can to go www.privacy.gov.au.

You can never be too careful with your personal information. If you have any questions or would like to know more about our privacy statement, please contact us on 13 10 90.


By Marie Mortimer. You can follow Marie on Google+

Image credit: ArminH

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