1. CREDIT REPORTING & THE CONSUMER
Bank of Jamaica
6 April 2017
Presenter: Sharon Johnson

2. Overview of Presentation
Background on Credit Bureaus
Benefits to the Consumer
Jamaica’s Credit Reporting System
Conclusion

3. BACKGROUND: Credit Bureaus
A credit bureau:
An agency that collects information on your credit history from institutions that provide credit to you.
Provides that information in a report, for a fee, to the providers of credit.

4. BACKGROUND: What is a Credit Report
A credit report represents your comprehensive credit profile which includes a history of your credit transactions, such as:
Your total number of credit facilities;
Your total balances; and
Your payment history
(including any default).

5. BACKGROUND: What is a Credit Score
Many lenders, as well as credit bureaus themselves, use credit bureau information to generate credit scores.
Credit scores are statistical estimates of the probability of how you might repay in the future based on characteristics available in the information provided to the credit bureau.

6. BENEFITS: To Consumers
Develop your “reputational” collateral
Faster processing of your loan applications
Lowering your financing cost for borrowers with good credit history
More disciplined use/management of credit
Business expansion with new credit access

7. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK:
The Credit Reporting Act provides for:
Entities that can submit your credit information to a credit bureau
How and when your credit information may be used
Who can request your credit report
Security and confidentiality of your credit data
Access to your own credit information
Consumer complaints resolution
Supervisory oversight by the BOJ

8. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Eligible Credit Information Providers (CIPs)
All licensed deposit taking institutions such as Banks & Building Societies
Credit Unions
Securities Dealers & Insurance Companies
Hire Purchase Companies

9. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Eligible Credit Information Providers… Cont’d
Micro Finance Enterprises
Utilities and Telecommunication companies
Trade Creditors

10. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Credit Information
Under the law, a credit bureau can collect the following types of information on you:
The amount and types of loans or other credit facilities granted to you
The type of collateral taken in respect of your credit facilities

11. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Credit Information cont’d
History of your financial transactions
An analysis of your information (e.g. in the form of a score)
Limited personal information (e.g. name, address, taxpayer registration)

12. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Disclosure of Credit Information
A credit bureau may disclose your credit information to:
A credit information provider (CIP)
(with YOUR written consent)
You the Consumer
The Supervising Authority (i.e. BOJ)
Under Court Order  

13. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Uses of Credit Information
A CIP Can Only Request a Credit Report for you if:
A loan or other credit facility is being granted to you
Dealing with any other financial or commercial transactions for you
You may give written instructions to a credit bureau to provide a credit report for:
Insurance underwriting
Employment purposes

14. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection

15. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection
You are entitled to:
Receive a credit free report in each calendar year
A full disclosure of your information in the credit bureau’s possession

16. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection…cont’d
Your free report should show:
All information pertaining to you in the possession of the credit bureau
The sources of the information
The name and address of every person to whom your information has been sent in the last six months

17. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection…cont’d
A lender that has obtained your credit report is required to confirm to you the name and address of the credit bureau that provided the report.
Where a benefit is denied or a liability is imposed on you based on credit information provided by a credit bureau, you must be informed of your right to request the name of the credit bureau.

18. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection…cont’d
If you have a dispute over the accuracy or completeness of your credit report, you may make a complaint in person or in writing to the credit bureau.
If you are dissatisfied with the outcome after reporting it to the credit bureau, you may submit the complaint in writing to the Supervising Authority (i.e. Bank of Jamaica).
The Supervising Authority investigates and makes a decision or issue a direction.

19. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection…cont’d
If either you or the credit bureau is dissatisfied with the result of the BOJ’s investigation, there is a right of appeal to an Appeals Tribunal.
The Appeals Tribunal consists of at least 3 members appointed by the Minister of Finance, one of whom is an Attorney-at-law.

20. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Consumer Protection…cont’d
Once you make a complaint to a credit bureau, it should take steps to have the information corrected no later than fourteen days after you make the complaint.
Whenever your credit information has been amended, a copy of the amended report is to be sent to every person to whom the inaccurate or incomplete information had been disclosed.
You are also to be notified when the necessary changes have been made.

21. Supervising Authority for Jamaica’s Credit Reporting System
The Bank of Jamaica
Supervising Authority for Jamaica’s Credit Reporting System

22. KEY FEATURES OF JAMAICA’S CREDIT REPORTING FRAMEWORK: Role of the BOJ
BOJ’s supervisory authority includes powers to:
Review and recommend on licence applications;
Conduct on-site examinations
Require periodic reports from credit bureaus
Issue supervisory guidance for credit bureaus’ operations
Investigate and determine on your complaints
Issue directions to CIPs

23. CONCLUSION:
The credit reporting regime in Jamaica presents a significant opportunity for:
Consumers seeking credit to benefit where they have a good repayment history; and
Consumers to be more responsible in their borrowing habits
The credit reporting system will also serve to ultimately enhance our financial sector and our economy

24. Thank You!
Questions…