Parliament Office has reported in the press that the Credit Reporting Bill 2009 has been committed to a Special Select Committee of the National Assembly. Members of the public, individuals as well as organisations, have been invited to submit their views on the bill to the clerk of the Special Select Committee of the National Assembly by tomorrow.
The explanatory memorandum of the bill is seen below.
Explanatory Memorandum
This bill seeks to provide for the establishment of a credit reporting industry which will facilitate the provision of information about potential debtors to creditors from a creditable source. The aim of the legislation is to enable more reliable, competitive and responsible credit lending while protecting borrowers’ rights.
Part II of the bill provides for the licensing of credit bureaus by the bank. It stipulates that only a local incorporated company limited by shares, whose activities are restricted by its articles of incorporation to carrying on the business of a credit bureau wou1d be eligible to conduct the business of a credit bureau It sets out the licensing procedures and establishes specific criteria governing the form and content of an application for a licence and the factors to be considered by the bank when evaluating an application for a licence. Provision is also made for the circumstances in which a licence could be revoked and the procedure for giving the licencee an opportunity to respond prior to revocation. It provides for the supervision of the credit bureau by the bank and details enforcement measures which may be adopted by the bank. Provision is also made in this part for the conduct of an annual audit and compliance interview and for the submission of this report to the bank and shareholders.
Part III deals with the principles for credit reporting. It provides for sharing of credit information by credit information providers and specifies who is considered a credit information provider the standard of reliability of the information to be satisfied prior to transmission to the credit bureau and the prohibition of the sharing of such data without the consent of the consumer. It specifies the purposes for which a credit bureau may furnish consumer information and the persons to whom it may be furnished. Special provisions to safeguard the confidentially and integrity of the information during transmission, transcription and storage are also included.
Part IV provides for the administration and responsibility of a credit bureau. It requires that the directors of the credit bureau ensure that its activities are conducted in full compliance with the act. The permissible activities, duties and responsibilities of the credit bureau are specified along with the capital requirement which it is required to satisfy. Provision is also made for the suspension and liquidation of a credit bureau and how the information collected should be dealt with in these circumstances.
Part V deals with the rights of the consumer. The consumer has a right to receive copies of all the information in the consumer’s file at the credit bureau, all the sources of such information and a list of the users who have accessed it during the six-month period prior to the provision of the information. It also provides the consumer with the right to challenge the information on the grounds that it is illegal erroneous or outdated and places a duty on a credit bureau to investigate the disputed facts. Provision is made for the modification or deletion of the information in the file depending on the outcome of the investigation. A procedure for the resolution of disputes is also detailed.
Part VI provides that the unauthorised disclosure of credit information the obtaining of credit information under false pretences and other breaches of the provisions of the bill are offences. This part also confers on the bank the broad authority to prescribe regulations and issue such notices or guidelines including the form of an application for and of a licence the scope and procedure tor the conduct of the annual audit and compliance review, the books, accounts and records to be kept by the credit bureau, the level of data adequacy and any other matter as may be required for the carrying out of the purposes of the bill.
