Spark IFP and on going credit reporting from agencies

Forums › Spark New Zealand (including Skinny and BigPipe) › Spark IFP and on going credit reporting from agencies

waikariboy

958 posts

Ultimate Geek
+1 received by user: 101

ID Verified

Trusted

#301893 12-Oct-2022 17:40

So my brother was looking at Xbox Series X with Spark on a IFP but then he got this and had to agree to it if he wanted the xbox.

"Throughout your IFP, we'll receive information about you from credit reporting agencies. We'll use it to assess whether to offer you more products on IFP, and whether extra payment reminders could be useful to you. By ticking this box you agree to the above"

How is this legal! On going reports to spark about your credit history. You have to agree to this and if you don't you cant place the order. He isn't going though with it. Is this policy in place on ALL IFP?

Balm its gone!

DeroyBoy

262 posts

Ultimate Geek
+1 received by user: 35

Trusted

#2982056 12-Oct-2022 18:02

Isn't this just Spark asking if customer agrees to a credit check? If it is then does not seem unreasonable when applying for interest free payment terms.

waikariboy

958 posts

Ultimate Geek
+1 received by user: 101

ID Verified

Trusted

#2982057 12-Oct-2022 18:06

DeroyBoy: Isn't this just Spark asking if customer agrees to a credit check? If it is then does not seem unreasonable when applying for interest free payment terms.

To me it seems like ongoing credit reports sent to spark

"Throughout your IFP, we'll receive information about you from credit reporting agencies."

Balm its gone!

DeroyBoy

262 posts

Ultimate Geek
+1 received by user: 35

Trusted

#2982059 12-Oct-2022 18:15

Ok. I missed the throughout part, maybe related to comprehensive credit reporting. They report your payment history and in return receive payment history information other companies are reporting about you to the credit reporting agencies.

Have not noticed that before on any credit applications I have made.

snnet

1413 posts

Uber Geek
+1 received by user: 556

#2982061 12-Oct-2022 18:23

This appears to be pretty commonplace now with many companies, they're making sure people can keep up with payments and trying to reduce collections overheads - condition of finance I guess. Can always opt to buy it outright from a store?

waikariboy

958 posts

Ultimate Geek
+1 received by user: 101

ID Verified

Trusted

#2982063 12-Oct-2022 18:30

snnet:

This appears to be pretty commonplace now with many companies, they're making sure people can keep up with payments and trying to reduce collections overheads - condition of finance I guess. Can always opt to buy it outright from a store?

don't know anyone else doing it, but i have not bought anything with this option. for me its seems like another form of data collecting.

Balm its gone!

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#2982069 12-Oct-2022 18:55

Its a form of credit checking, no more, no less. If you turn out to be a risk, no one will lend, as always. Dont overthink it

Apple TV

Stream your favourite shows now on Apple TV (affiliate link).

waikariboy

958 posts

Ultimate Geek
+1 received by user: 101

ID Verified

Trusted

#2982095 12-Oct-2022 20:20

tdgeek:
Its a form of credit checking, no more, no less. If you turn out to be a risk, no one will lend, as always. Dont overthink it

This seem more than a simple credit check

If you sign up for interest free payments with Spark, we’ll also receive information from credit reporting agencies throughout your interest free payment term. This new information will tell us how you’re managing any other credit accounts you have.

https://www.spark.co.nz/help/other/terms/policies/creditdisclosure/

Balm its gone!

cokemaster

Exited
4937 posts

Uber Geek
+1 received by user: 1089

Retired Mod

Trusted

Lifetime subscriber

#2982118 12-Oct-2022 22:05

When I saw the statement

Throughout your IFP, we'll receive information about you from credit reporting agencies. We'll use it to assess whether to offer you more products on IFP, and whether extra payment reminders could be useful to you. By ticking this box you agree to the above

That got me a little worried. Credit reporting information should have limited scope and using it to market more IFP's should absolutely be a opt-in feature (with the default being opt-out).
Early payment reminders, they can definitely manage this within their own payment data (eg. payment history, credit grades etc). There are some interest debates to be had on what information is collected and how long is it retained for... as well as the security implications too (https://theconversation.com/optus-says-it-needed-to-keep-identity-data-for-six-years-but-did-it-really-191498)

But... thats not what I see on their website https://www.spark.co.nz/help/other/terms/policies/creditdisclosure or on the credit check portion on their online journey:

The terms on their website sound fairly inline with what most utilities would request.

webhosting

Loose lips may sink ships - Be smart - Don't post internal/commercially sensitive or confidential information!

boosacnoodle

1274 posts

Uber Geek
+1 received by user: 858

#2982158 13-Oct-2022 08:26

This has been in-place for a number of years now.

freitasm

BDFL - Memuneh
80653 posts

Uber Geek
+1 received by user: 41045

Administrator

ID Verified

Trusted

Geekzone

Lifetime subscriber

#2982161 13-Oct-2022 08:29

@tdgeek:

Its a form of credit checking, no more, no less. If you turn out to be a risk, no one will lend, as always. Dont overthink it

A couple of replies before yours point out that it's a continuous credit checking during the life of the IFP - not just one at approval time.

Referral links: Quic Broadband (free setup code: R587125ERQ6VE) | Samsung | AliExpress | Wise | Sharesies

Support Geekzone by subscribing (browse ads-free), or making a one-off or recurring donation through PressPatron.

rscole86

4999 posts

Uber Geek
+1 received by user: 462

Moderator

Trusted

Lifetime subscriber

#2982234 13-Oct-2022 11:59

I have both a Spark account and the Xbox finance deal. There is no extra reporting, that I can see, on my credit report. Which makes sense as I'm billed as part of my existing Spark services.

Reading the terms and conditions of another finance provider, it seems like it's a standard condition. I personally do not mind this, and if it goes towards making sure lenders take more responsibility for those who are less financially literate, I'm all for it

Dell

Shop now for Dell laptops and other devices (affiliate link).

loceff13

1089 posts

Uber Geek
+1 received by user: 340

#2982352 13-Oct-2022 16:54

snnet:

This appears to be pretty commonplace now with many companies, they're making sure people can keep up with payments and trying to reduce collections overheads - condition of finance I guess.

Which is great and all but they still charge customers who pay a day late $18.40 for an automatic email reminder, customers shouldn't be subsidising the collection costs of their bad debtors when they are the ones chosing to take on that level of risk.

snnet

1413 posts

Uber Geek
+1 received by user: 556

#2982712 14-Oct-2022 19:03

loceff13:

Which is great and all but they still charge customers who pay a day late $18.40 for an automatic email reminder, customers shouldn't be subsidising the collection costs of their bad debtors when they are the ones chosing to take on that level of risk.

Well, maybe pay on time or tell them you can't - they have people to deal with this? If you just leave it / forget about it, do you not get deterred not to do it again? As someone who invoices and has late payers it's pretty frustrating when someone has agreed to something and fails to follow thru month after month