Credit providers can expect further delays to the establishment of a comprehensive credit reporting regime, following the release of the Senate committee review of the Government's draft legislation, which makes substantial recommendations for change.The Senate Finance and Public Administration Legislation Committee made 30 recommendations in its review of draft privacy amendment legislation. These recommendations call for changes that will simplify and clarify the operation of the new regime, and provide a better understanding of consumer rights and credit providers' obligations. The committee said the draft had not provided adequate protection for people who are victims of identity theft. Nor had the Government come up with the right approach to dealing with serious credit infringements.The Privacy Act restricts the information that can be collected and disclosed in a credit report. Under current law, information is restricted to that which detracts from an individual's creditworthiness, such as defaulting on a loan.In its 2008 review of the Privacy Act, the Australian Law Reform Commission recommended that credit reporting agencies be allowed to collect a wider range of information in their credit reports. This could include current credit commitments and repayment performance. The ALRC said this must be considered at the same time as other regulatory issues, such as improving data quality, dispute resolution and penalties for the unauthorised disclosure of such information.The Senate committee agreed with a large number of submissions that said the credit reporting rules were complex.It said: "The exposure draft was not seen as improving clarity or providing greater simplicity. Consumer protections and industry obligations are not clearly set out. The exposure draft contains 60 new definitions, compared with seven definitions in the current Privacy Act."It said these shortcomings were a result of the draft bill being too prescriptive."The move to a more comprehensive credit reporting regime, with the addition of new data sets, has required the implementation of a significant regulatory framework. The approach taken, which regulates the flow of information in the credit reporting sector, may have undermined the goal of simplifying and clarifying the credit reporting regime. This may lead to uncertainty as to obligations and rights."The committee recommended the exposure draft be reviewed to ensure that the provisions are clear and concise.It recommended that the Government consider giving the Australian Information Commissioner power to conduct regular audits of credit reporting agencies and credit providers.The committee also recommended the exposure draft be amended so that the interaction between Australian Privacy Principles and credit reporting rules are clarified.The Government's plan to give telecommunications companies and power suppliers access to credit reports under the new regime raised some issues. A serious credit infringement occurs when, for example, a consumer changes address without informing a credit provider and stops making payments. Consumer groups expressed their concern that a serious credit infringement listing could occur in situations where a telephone or electricity account was left in a person's name after the person had moved on from a shared house. Such an infringement, resulting from an oversight, could have serious adverse consequences