What are the Principles of Reciprocity and Data Exchange?
The Principles of Reciprocity and Data Exchange (PRDE) is a set of industry-developed data exchange rules to support the move of Australia’s credit reporting towards a comprehensive system. The PRDE facilitates sharing of credit reporting information among signatories by setting up a reciprocal data exchange.
The PRDE has been developed through extensive consultation over many years with ARCA Members and other key stakeholders. Based on this development process, ARCA considers the PRDE to be the most effective means to incentivise participation in the new credit reporting system and facilitate data sharing.
In 2014, Australia improved its system of credit reporting to make it more comprehensive. For decades, Australia had a system where only negative information could be shared by credit providers, like consumer defaults and bankruptcy reports. That system didn’t allow positive things to be shared, like the number and details of credit accounts that a consumer has or their track record of paying back credit.
The new laws mean that since 2014 negative information can continue being shared, but so too can positive information. Importantly, the new laws did not mandate the way that industry must share information, but have enabled industry to work together to develop a system of information sharing.