2Degrees Credit Reporting FYI

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PaulFindlay

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#320272 24-Jul-2025 20:46

Hi all,

Despite not asking for explicit permission/consent.. 2degrees broadband customers' payment history appears to be consistently reported to credit agencies. This appears to have the downside of any missed direct debit (even if manually paid the same day or auto retried by 2degrees) being reporting as a late payment.

This hasn't just been experienced by myself but a number of customers: https://old.reddit.com/r/newzealand/comments/1jupov1/2degrees_customers_beware/mm6w3ws/

I asked for the 2degrees team about details of this and got some really uninformed replies about the Credit Reporting Privacy Code requiring this, how they completely and utterly comply with the Credit Reporting Privacy Code and that the Privacy Policy covers this. When I personally signed up, it was in the privacy policy as only happening if one agrees/consents: https://web.archive.org/web/20240805020551/https://www.2degrees.nz/termsofuse/privacy-policy

I hope this is a helpful public service notice for anyone who cares about their privacy and credit rating. Especially in the face of recent price rises which may not be reflected in ones direct debit setups. So far 2degrees has express no interest in remediating the situation to me, so I have emailed the Privacy commissioner.

Hmm in hindsight this may apply to all Vocus companies and the credit agencies have my broadband under Vocus Group.

KiwiSurfer

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#3396894 24-Jul-2025 21:09

Many companies who bill on credit (e.g. telcos, powercos, etc) do this so not sure why the specific target at 2degrees?

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#3396895 24-Jul-2025 21:11

And what is the actual issue? This is nothing new....I am actually pleased they do it

I watch my credit report / history and monitor it monthly

I can see my credit card and mortgage and power company getting reported on as well

you emailed the privacy commissioner lol 😆 😂 🤣

PaulFindlay

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#3396899 24-Jul-2025 21:51

More an information piece for others.

The Privacy Commissioner oversees the Credit Reporting Privacy Code. I think it's a pretty aggressive interpretation impacting others I.e. pay by bank transfer and get reported as late seems a bit mental.

Since this isn't America and one doesn't need to build a credit score the same way, I personally would have just picked someone like Quic and prepaid every month if I knew this is what they did and how they view Kiwis.

Unlike the Privacy Principles, the Credit reporting Privacy code requires active consent unless there is a debt collection process in play. So it might surprise others to see Vocus/2degrees act this way. Flick/Frank/Meridian all informed me about their credit checking and reporting in comparison

SaltyNZ

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#3396902 24-Jul-2025 22:40

You agreed when you signed up. The credit checking and reporting was a condition of being offered credit (a postpaid account). If this is not acceptable then you will need to get a new prepay connection from scratch (and it will be exactly the same with Spark and One).

iPad Pro 11" + iPhone 15 Pro Max + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.

PaulFindlay

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#3396905 24-Jul-2025 22:54

Hey, IANAL, but the code is pretty clear

If a credit reporter collects credit information from the individual concerned, the
credit reporter must take any steps that are, in the circumstances, reasonable to ensure
that the individual concerned is aware of—
(a) the fact that the information is being collected

...

A credit reporter must conspicuously display on the credit reporter’s website a
statement that sets out the purposes for which it collects credit information and the
purposes for which the information will be used and disclosed.

If they made myself aware, I would have no problem. If you read the privacy policy from August 2024 it clearly says they will only do this if customer agree/consent etc.

Not sure why you are treating your assumption as the legal framework these sorta companies need to operate under.

DeroyBoy

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#3396908 24-Jul-2025 23:59

Not a lawyer or defending any action that has occurred but I think people are referring to the t&c's that were agreed upon when opening the account.

https://www.2degrees.nz/termsofuse/personal/broadband/fibre-and-copper/2degrees-broadband-terms-and-conditions-from-1-november-2022

Credit Check

The Activation of your Account is conditional upon you completing the Account set up a process, which may include a credit check.
In accordance with our Privacy Policy, you authorise us to check your credit status with any credit reference agency or agencies as we see fit from time to time during the term of this agreement and to pass on information about you to any credit reference agency for that purpose. We do not accept responsibility for the accuracy of information we receive about you from any credit reference agency. You must contact that agency directly if you are dissatisfied with any information supplied to us.

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PaulFindlay

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#3396909 25-Jul-2025 00:14

Those terms are from 2022. I have read my terms and conditions from 2024 and even linked in the first post to the version of their privacy policy from the date I signed up. Which is also the only document I saw mentioning the topic. I have even gone through the signup form to confirm this.

PaulFindlay

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#3396910 25-Jul-2025 00:25

Also guys, in 2degrees own words

Like most telcos, we charge broadband a month in advance

Which is unlike the power examples, as customers are not in debt each month.

DeroyBoy

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#3396912 25-Jul-2025 01:09

My link was to the current ‘Broadband terms and conditions’ and have applied since November 2022.

There are also the 2024 plan terms that I think you are referencing which state ‘These terms and conditions apply to all customers on the applicable Plans from 4 November 2024 in addition to our Broadband Terms and Conditions‘ (that was what I linked)

You also linked to the privacy policy.

So all three seem current and applicable.

The Broadband terms and conditions seem to cover you agreeing to the credit check and sharing.

Regardless I am genuinely interested in the response from the privacy commissioner so please share it.

PaulFindlay

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#3396919 25-Jul-2025 07:42

Fair enough. This language is not as clear as it could be. A credit check is understood colloquially to mean just accessing the score. Spark at least spell out things https://www.spark.co.nz/help/account/bill/comprehensive-credit-reporting-at-spark/

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#3396920 25-Jul-2025 07:46

PaulFindlay:

Which is unlike the power examples, as customers are not in debt each month.

@PaulFindlay How could a power company charge in advance? Just looks like to me you are trolling or have nothing better to do with your time on this planet

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KiwiSurfer

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#3396949 25-Jul-2025 08:34

PaulFindlay:

Also guys, in 2degrees own words

Like most telcos, we charge broadband a month in advance

Which is unlike the power examples, as customers are not in debt each month.

Even if they charge in advance, the customer would still owe money until the bill is paid. E.g. bill 1st of month for that month, you have until 20th or whever to pay. So still requires credit to be given to the customer -- hence the credit check/reporting.

PaulFindlay

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#3397002 25-Jul-2025 11:33

This is true. They expect payment within 7 days of the usage period starting. All I was trying to highlight, is for people who fail a direct debit then immediately sort it or rely on 2degrees to retry.. they will be consistently reported as bad creditors. 2degrees instead of saying this is our business decision said "we have to operate this way according to the code" which is what I am interested in the Privacy Commissioner's opinion on.

@DeroyBoy In terms of the T&Cs: I signed up for brand new accounts for both mobile & broadband. Despite having interest free plans for mobiles etc there is no credit reporting occurring. Just broadband. They have very similar T&Cs. So I think there is something here about Vocus' billing system driving this.