The scores will thwart fraud and stop untrustworthy people getting loans. Photo / Kenny Rodger
Dunedin woman Sarah* was horrified to read about Veda Advantage's new credit reporting system.
She and her husband, both in their early 40s, have been bankrupted within the past two years over a failed automotive garage business. Their troubles included a former staff member who allegedly stole their client database
and set up in opposition.
They have successfully supported mortgages before, which included two rental properties. "We sold all of that to buy the business," she said.
Although they will be discharged as bankrupts within a year or so the couple know they won't get a bank loan for another four. They are doing university papers to try to get ahead but can't even get student loans because of their bankrupt status.
Sarah fears the system will further penalise them. "Should we continue to be castigated year after year? How long does the widow wear black?"
Veda Advantage's John Roberts says the case highlights the problem with negative credit reporting. "If we had positive reporting, [Sarah's] rehabilitation, if you will, would actually translate into a positive score."
*Not her real name
