The Consumer Data Right (CDR) is currently operational in the banking sector. The banking sector was designated in September 2019, following the Review into Open Banking which recommended a broad range of lending products provided by banks be in scope for the CDR, including lease products.
The banking rules were drafted on the basis that lease products are within scope of the banking designation, and the sector is currently operating on that basis. However, uncertainty as to whether the definition of ‘product’ in the designation instrument covers all lease products prompted Treasury to consider an amendment to the instrument to explicitly capture the full range of lease products offered by banks.
Part IVD of the Competition and Consumer Act 2010 requires the Secretary of the Treasury Department to prepare a report and for the Minister to consider a range of factors before making a designation instrument for the sector.
Treasury’s final sectoral assessment report recommends the banking designation instrument be amended to explicitly include goods and services that have been supplied in connection with the letting on hire of goods (leases), including on hire‑purchase.
This definition is consistent with that recommended for inclusion in the non‑bank lending designation instrument by the Sectoral Assessment Final Report. Making this change will ensure there is consistency in definitions between the banking and non-bank lending sectors.