Credit Bureaus and You

Credit bureaus are changing the way we operate in Jamaica.Where once a customer had to provide a complete set of documents for each loan application simply to establish his credit worthiness in the eyes of a lender, a credit report may now be generated which can give the lender a fairly good idea of his customer's financial history including how well his loans are repaid.The process however is not all one way as a customer may request a copy of his own credit report to gauge his credit standing, check for any errorsin assessment or to see which companies have been inquiring about his credit worthiness. In addition, a lender may not view your credit history without your permission.
Among the advantages is the assurance of knowing that a good report could mean even more favourable loan terms. Also bureaus may only report up to the last seven years of activity on any account, so there is always the chance of rebuilding good credit over time.

What is a credit bureau?

A credit bureau is an agency that collects credit information from lenders and other relevant credit information sources on a borrower's credit history, and provides that information, for a fee to prospective lenders.

Who collects information and reports on me?

Credit Info and CRIF NM are the two main credit bureaus in Jamaica that gather and maintain information about you that is included in your credit report. The credit bureaus then provide this information in the form of a credit report to companies who are authorized to request it, such as lenders from whom you are seeking credit.

Where do credit bureaus obtain their information?

Under the Credit Reporting Act (2010) credit bureaus may collect information from both public and private sources.They collect information on your credit history from lenders like financial institutions,businesses that otter hire purchase and utility companies.
Bureaus can also get data from public records like court. electoral or property records.

What kind of information do they collect?

The data collected by credit bureaus essentially helps to confirm your identity and establish how much of a risk you would be to anyone willing to lend you money.
As such, the information collected could include personal information such as your last known address or addresses to which you have been linked or may have provided to lenders.
It collects details of your payment records with utility companies or mortgage providers. including missed payments or excellent repayment history.
Bureaus may also source data on the amount and nature of loans and advances, or other credit facilities, granted to you. This includes lease financing and hire purchase. If you stood as guarantor or accessed any other non-fund-based facility this would also be reflected in your report. Information collected by a credit bureau could also identify persons with whom you have a financial link such as a joint mortgage lenders.

Credit Bureaus

If you have ever taken anything on credit, applied for a loan to offset any bill or taken out a mortgage,you have been creating a credit file. It is this information - also referred to as a credit report - supplied by your lenders and other public information sources which will help other lenders to decide whether or not to lend you money and on what terms.It details every credit related information and public information issued in your name. A typical credit report will have your basic
personal information including:

• your name.

• tax registration number (TRN} address

and may include information on:

• Your existing credit such as your credit card accounts, mortgages, car loans, and student loans.

• The terms of your credit (Hire Purchase and Revolving Credit Accounts),

• how much you owe your creditors, and

• your history of making payments.

If your financial matters have ever been logged in the courts it will be included. This
could include:

• tax liens against your property,

• monetary suits and judgments or

• whether you have filed for bankruptcy.

The report could also outline a list of companies or persons who recently requested a copy of your report.

Why Do Companies Access Credit Reports?

While a credit report is generally used to assess how much of a risk you pose to someone who wants to lend you money, some, like employers or landlords use the information to form other opinions of you. They may use a credit report to determine your integrity by seeing how well you repay and manage your financial obligations.
No one should be able to view or request a credit report on you without your consent.
Persons who usually request a credit report are financing companies you have initiated business with, such as banks,building societies, credit unions, hire purchase companies and other specific types of businesses.
You can also give your written consent for a special version of your credit report to be sent to potential employers and landlords.Because they are only trying to assess your integrity by seeing how you repay and manage your financial obligations, they get a different version than lenders get.

Who else is allowed to see my credit report?

Because credit reports contain sensitive personal information, access to them is limited. Credit bureaus can provide credit reports only to
lenders from whom you are seeking credit; lenders that have granted you credit; telephone, cell phone,and utility companies that may provide services to you;
your employer or prospective employer, but only if you agree;
insurance companies that have issued or may issue an insurance policy for you;
government agencies reviewing your financial status for government benefits; and
anyone else with a legitimate business need for the information, such as a potential landlord or a bank at which you are opening a checking account.
Credit bureaus also furnish reports if required by court orders or subpoenas. Upon your written request, they will also issue your report to a third party.