Q:I have an existing credit card account kept with the bank and now I intend to apply for a personal tax loan from the bank. In considering my tax loan application, what sort of account data will the bank be entitled to look at from the credit reference agency ("CRA") ? Can the bank make use of the credit report so obtained so as to decrease the credit limit to be granted to me under my credit card account?
A: In relation to the fresh personal tax loan applied for which falls within Clause 2.9.1.1 as a grant of new consumer credit, the bank can access both your positive credit data (comprising your account general data and repayment data), your account data relating to hire-purchase, leasing or charge account as well as your negative credit data (i.e. the material default data outstanding at or existing prior to the time of access). The bank should not use the credit report so obtained from the CRA to review (which term "review" is taken to mean under Clause 2.9.3, 2.9.4 and 2.9.5 an increase or curtailing of credit amount or the putting in place or the implementation of a scheme of arrangement with the individual) your credit card limit. The proper course is for the bank to make a "review" access to obtain a credit report.