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Consumers are being unfairly disadvantaged by credit reporting companies profiling them based on the suburb they live in, according to credit repair company Credit Fix Solutions.
Victoria Coster founder of Credit Fix Solutions told ABC News that credit scores were being influenced by where a person resides.
“If I am Victoria Coster from a poorer postcode I might get a credit score that is 20 points lower than Victoria from a richer postcode, which in turn means that I might not be able to access those lenders with the best interest rates.”
Victoria Coster believes it is important for brokers to educate consumers about all the different elements that go into a credit score.
“Unfortunately, automated decision making (ADM) in finance is growing with Equifax and other credit reporting companies using the technology. This means people are being unfairly disadvantaged because systems are being automated and algorithms are being used.
“It’s unfair to think that where you currently live should play a role in your ability to service a loan in the future. Every consumer should be reviewed independently, but while Equifax is using postcode data it’s very important information for those seeking out future home loans to be aware of the ramifications of where they live.”
Victoria’s sentiments were echoed by Professor Lyria Bennett Moses, director of the University of NSW Allens Hub for Technology, Law and Innovation.
“There is a risk, particularly using something like postcodes that you will ultimately be doing proxy discrimination,” she told ABC News.
If you would like more information in regard to credit reporting and important updates for your clients, please email the Credit Fix Solutions team at
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