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A Creditinfo Seminar                            onJamaica’s New Credit Reporting Environment                 Wednesday Jun...
The Credit Reporting Act2010MEGAN DEANECHIEF EXECUTIVE OFFICERCREDITINFO JAMAICA LIMITED
Creditinfo Jamaica - StructurePartnership between Creditinfo Group and Coalesce CreditSolutions             Creditinfo Gro...
Credit Bureau Licence - Process• Applied to the BOJ in March 2011• Individual Fit & Proper• Assessment of Proposed:   –   ...
Credit Bureau Licence- Mandate•   Sign credit information providers as subscribers•   Embark on Public Awareness Campaign•...
Creditinfo Jamaica - Vision  “To be the leading Credit InformationBureau in the Caribbean region, providing consistent and...
Creditinfo Jamaica - Mission“To provide consistent and reliable credit information to the financing sector and      the pu...
Creditinfo Group’s Values• Innovation: We are willing to look at innovative ways to fulfill the needs of our customers  an...
Creditinfo Jamaica’s Values (Aligned to Group)PROFESSIONAL CONDUCT• We will approach our data gathering and dissemination ...
The Credit Reporting Act 2010• The Act was promulgated into law on August 31, 2010• Provides for the sharing of credit inf...
The Credit Reporting Act 2010The Act applies to the disclosurea) Of credit information by an entity in Jamaica to another ...
The Credit Reporting Act 2010Section 8 Subsection 2 of the legislation provides for which types of entities may be datapro...
* SECTION 13 OF THE MONEYLENDING ACT13.-( 1) This Act shall not apply to-a) any Friendly Society, or to any Building Socie...
The Credit Reporting Act 2010Under the legislation, a person who discloses credit information abouta consumer in return fo...
The Credit Reporting Act 2010A company may apply for a licence under the Act.Creditinfo Jamaica applied and received a lic...
The Credit Reporting Act 2010The Bureau has as its supervising authority the FinancialInstitutions Supervisory Division of...
The Credit Reporting Act 2010Credit information includes• The Consumer’s name• Present and past addresses• Taxpayer Regist...
The Credit Reporting Act 2010Credit information includes• Analysis of that information including any conclusions  as to cr...
The Credit Reporting Act 2010The Responsibility of Credit Data Providers• Not to disclose credit information about a consu...
The Credit Reporting Act 2010The Responsibility of Credit Data ProvidersNot use or disclose information received from a cr...
The Credit Reporting Act 2010Consumers and Complaints ProcedureProvision of written notice to the Credit Information Provi...
The Credit Bureau & Data ProvidersTHE CREDIT BUREAU WILL,•   Maintain a Register of Credit Information Providers from whic...
Offences and Penalties under the ActPenalties range between $250,000.00 and $2,000,000.00 or imprisonment for terms rangin...
The Credit Reporting Act 2010          Thank you QUESTIONS AND ANSWERS
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The credit reporting act 2010 (megan deane)

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Transcript of "The credit reporting act 2010 (megan deane)"

  1. 1. A Creditinfo Seminar onJamaica’s New Credit Reporting Environment Wednesday June 6, 2012 Knutsford Court Hotel, Kingston Jamaica
  2. 2. The Credit Reporting Act2010MEGAN DEANECHIEF EXECUTIVE OFFICERCREDITINFO JAMAICA LIMITED
  3. 3. Creditinfo Jamaica - StructurePartnership between Creditinfo Group and Coalesce CreditSolutions Creditinfo Group Hf Coalesce Credit Solutions Ltd Creditinfo Jamaica Ltd
  4. 4. Credit Bureau Licence - Process• Applied to the BOJ in March 2011• Individual Fit & Proper• Assessment of Proposed: – Specialised Experience – Policies & Procedures – IT System Infrastructure – Business Financing• System Prototype Demonstration• FIRST Credit Bureau Licence granted - March 7, 2012
  5. 5. Credit Bureau Licence- Mandate• Sign credit information providers as subscribers• Embark on Public Awareness Campaign• Setup Creditinfo Credit Bureau Solution (CBS)• Transfer subscriber credit data to Creditinfo database• Test CBS with Subscribers• Implement business policies and procedures• Final assessment by the Bank of Jamaica• Live Credit Bureau• MORE INFORMATION TO REDUCE RISK
  6. 6. Creditinfo Jamaica - Vision “To be the leading Credit InformationBureau in the Caribbean region, providing consistent and reliable credit and other information to our clients while contributing to national growth and development.”
  7. 7. Creditinfo Jamaica - Mission“To provide consistent and reliable credit information to the financing sector and the public, complemented by comprehensive data analysis and other related services”
  8. 8. Creditinfo Group’s Values• Innovation: We are willing to look at innovative ways to fulfill the needs of our customers and partners. We are not afraid to do something that has not been done before• Respect: We respect our customers, partners and any other stakeholders. Every employee in our company should feel appreciated. We respect cultural diversities• Service-minded: We are customer oriented and do our upmost to provide good service both inside and outside the company• Co-operation: We can achieve more, faster and better if we work together as a team. We give advice freely and share our knowledge. We help each other• Effective: We are practical and down to earth. We use our resources to create value for our customers and partners. We do not waste time and money, nor do any other things that are not in some way contributing to achieving our strategy and goals. We are not a bureaucratic company
  9. 9. Creditinfo Jamaica’s Values (Aligned to Group)PROFESSIONAL CONDUCT• We will approach our data gathering and dissemination with integrity and professionalism, always balancing the confidentiality of our operations with the right of business and individuals to informed decision-makingTRANSPARENT ORGANISATION• We will conduct our business within the regulatory framework with equity, transparency, accountability and lack bureaucracySATISFIED CUSTOMERS• We are responsive to the needs of our customers and deliver customer service above and beyond expectationsMOTIVATED STAFF• We will create a work environment that is open and honest, which promotes teamwork and develops highly motivated and committed staffPROACTIVE ATTITUDE• We will be innovative, creative and proactive, to ensure that Creditinfo Jamaica remains on the cutting edge of the credit information industry.
  10. 10. The Credit Reporting Act 2010• The Act was promulgated into law on August 31, 2010• Provides for the sharing of credit information between specified bodies, the licensing of credit bureaus and for connected matters• Object is to ensure that credit reporting is done through reasonable procedures that meet the needs of commerce for credit information in a manner that is fair and equitable to the consumer having regard to the confidentiality, accuracy, relevance and proper utilisation of such information
  11. 11. The Credit Reporting Act 2010The Act applies to the disclosurea) Of credit information by an entity in Jamaica to another entity in or outside Jamaicab) By any entity outside Jamaica, of credit information relating to any transaction, in whole or in part, in JamaicaNB. A company that discloses credit information in any other country, in return for monetary payment or other reward, shall, for the purposes of the Act, be deemed to have made such disclosure in Jamaica.
  12. 12. The Credit Reporting Act 2010Section 8 Subsection 2 of the legislation provides for which types of entities may be dataproviders to a Credit Bureau. They are,• A bank licensed under the Banking Act• A financial institution licensed under the Financial Institutions Act• A building society licensed under the Building Societies Act• A society registered under the Co-operative Societies Act• The Development Bank of Jamaica Limited• A dealer in securities who is licensed under the Securities Act• Any person who carries on the business of selling goods under hire purchase, credit sale or conditional sale agreements, as defined by the Hire Purchase Act• A person who publishes information on suits and judgments for debt claims• A credit bureau• An insurance company registered under the Insurance Act• The National Housing Trust• The Students’ Loan Bureau• An entity exempt from the provisions of the Moneylending Act by section 13 of that Act*• Such other body, other than an individual, as the Minister may designate to be a credit information provider by notice published in the Gazette and in at least one daily newspaper in circulation throughout Jamaica
  13. 13. * SECTION 13 OF THE MONEYLENDING ACT13.-( 1) This Act shall not apply to-a) any Friendly Society, or to any Building Society or Benefit Building Society, registered under the Friendly Societies Act or the Building Societies Act respectively or any enactment amending or substituted for the same, or to any loans made by any such Society; orb) any Society registered under the Industrial and Provident Societies Act or any enactment amending or substituted for the same, or to any loans made by any such Society; orc) any body corporate, incorporated or empowered by an enactment of the Legislature of this Island to lend money in accordance with such enactment; ord) any company licensed under the Financial Institutions Act; or any company licensed under the Banking Act; or any loan to or contract or security for the repayment of money lent to a body corporate incorporated in Jamaica by or under any enactment or by royal charter; or any insurance company registered under the Insurance Act, in the course of whose business and for the purposes whereof it lends money; or any person whose main business is not the lending of money and who lends money solely incidental to the conduct of such business; or any loan or contract or security for the repayment of money lent at such rate of interest not exceeding such rate per annum as the Minister may by order *prescribe; or a licensee under the Securities Act; or an entity – (i) which is established by a statutory body or authority; and – (ii) the primary purpose of which is to lend money.
  14. 14. The Credit Reporting Act 2010Under the legislation, a person who discloses credit information abouta consumer in return for monetary payment commits an offenceunless they are,• A licensed credit bureau• A credit information provider to another credit information provider• An affiliated company having the same consumer client• Authorised by the courtWith the legislation, use of the words “Credit Bureau” or any otherwords which could reasonably be construed as indicating that theperson carries on the business of a credit bureau constitutes anoffence
  15. 15. The Credit Reporting Act 2010A company may apply for a licence under the Act.Creditinfo Jamaica applied and received a licence with several conditions• Operation to commence within twelve months• Appropriate organisational arrangements• Details on proposed disposal procedures for inaccurate information• Signed Data Providers Agreements• Appropriate insurance coverage• Demonstration to the BOJ of the Credit Bureau System• Documented MIS and IT Security Protocols• Physical location inspection and approval
  16. 16. The Credit Reporting Act 2010The Bureau has as its supervising authority the FinancialInstitutions Supervisory Division of the Bank of Jamaica whichwill oversee,• Fit and Proper Status of a credit bureau’s principals• The security protocols of the credit bureau system• The integrity of the data in the credit bureau system• The financial sustainability of a credit bureau
  17. 17. The Credit Reporting Act 2010Credit information includes• The Consumer’s name• Present and past addresses• Taxpayer Registration Number (or other numeric reference)• The amount and nature of loans and advances or other credit facilities granted by a credit information provider• The nature of the security taken in respect of credit facilities (including lease financing or hire purchase arrangements)• The nature of any guarantee or other non-fund based facility• Information about financial means, creditworthiness or history of financial transactions (including antecedents and adverse court judgements)
  18. 18. The Credit Reporting Act 2010Credit information includes• Analysis of that information including any conclusions as to creditworthiness, whether in the form of a system of numerical or alphabetic scores or otherwise• Any credit related information that the Minister specifies, in directions issued by the Minister by notice published in the Gazette, as appropriate to include.
  19. 19. The Credit Reporting Act 2010The Responsibility of Credit Data Providers• Not to disclose credit information about a consumer to a credit bureau without first receiving the consumer’s consent in writing• Provide reliable information (accurate in all material respects; is fair and balanced; does not include personal information unless the consumer consents in writing attached to the information);• Publish in a daily newspaper in circulation in Jamaica at least seven (7) days before first commencing the provision of any credit information, a notice stating its intention to do so;• Advise in writing every applicant for any credit facility at the time of application a notice indicating that credit information may be supplied to a credit bureau;• Advise a consumer if credit is denied due to any information in a Credit Report and provide information as to the Credit Bureau or Credit Information Provider that provided the report.
  20. 20. The Credit Reporting Act 2010The Responsibility of Credit Data ProvidersNot use or disclose information received from a credit bureau except, a) in connection with, the extension of credit to; a guarantee or other non- funds based facility for, or the purchase or collection of a debt incurred or guaranteed by, the consumer to whom the information pertains; b) with the written permission or directions of the consumer and without monetary reward, for the purposes of, - the employment of the consumer; - the underwriting of insurance for the consumer; - facilitating a financial or commercial transaction involving the consumer; or (c) for purposes of updating any credit information disclosed before;CONTRAVENTION OF RESPONSIBILITIES CONSTITUTES AN OFFENSE
  21. 21. The Credit Reporting Act 2010Consumers and Complaints ProcedureProvision of written notice to the Credit Information Provider or CreditBureau that the consumer’s credit information has been or may beaffected by a fraud committed by another person,• The Credit Information Provider will deliver copy of the notice to all whom it had disclosed the credit information and in the case of the Bureau, to the Provider who provided the information.• Include a copy of the notice with any subsequent disclosure in relation to the consumer until the notice is rescinded in writing to the Bureau.If the Bureau discloses inaccurate information unknowingly, it is requiredto,• Give notice in writing of the inaccuracy to all who previously pulled the report• Take steps to correct the inaccuracy
  22. 22. The Credit Bureau & Data ProvidersTHE CREDIT BUREAU WILL,• Maintain a Register of Credit Information Providers from which credit information has been requested or obtained including, (a) Name and Address (b) the number of instances in which (i) that provider gave information that was not reliable (ii) the accuracy of credit information provided by that provider was disputed by a consumer And also advise that Information Provider accordingly in writing and include in the Register any written response (c) the resolution or otherwise of the instances outlined• The Bank of Jamaica, as the Supervising Authority, operates a protocol in respect of Credit Information Providers that contravene any aspect of the legislation, which protocol includes suspension of data provision and consequent inability to pull data.
  23. 23. Offences and Penalties under the ActPenalties range between $250,000.00 and $2,000,000.00 or imprisonment for terms rangingbetween six months and one year or both such cash fine and imprisonment• Disclosure of credit information for monetary payment or otherwise• Obstruction of officer executing warrant• Knowingly, or recklessly supplying false information, etc. in licence application• Using the words “credit bureau” etc. in name without licence or approval• Failure to give notification of change in particulars• Disclosure of unreliable, confidential or personal information; failure to correct unreliable information• Disclosure of credit information obtained from person other than credit information provider• Failure to maintain register of credit information providers• Obtaining or disclosing information while prohibition notice is in effect• Unlawful disclosure of credit information by credit bureau• Unlawful use of credit information• Breach of Confidentiality; knowingly using or disclosing credit information obtained in contravention of the Act• Failure to comply with requirement or directions of supervising authority; wilfully misleading or obstructing supervising authority• Inclusion of false information in statement etc. relating to amalgamation or transfer• Refusing to produce books or documents or to answer questions put by investigator• Failure to comply with directions of Minister.
  24. 24. The Credit Reporting Act 2010 Thank you QUESTIONS AND ANSWERS
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