Bank of Jamaica
6 April 2017
Presenter: Sharon Johnson
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 Background
on Credit
Bureaus
 Benefits to the Consumer
 Jamaica’s Credit Reporting
System
 Conclusion
2

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.
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
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).
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

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.
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
Develop your “reputational” collateral

Faster processing of your loan applications

Lowering your financing cost for

More disciplined use/management of credit

Business expansion with new credit access
borrowers with good credit history
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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
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
All licensed deposit taking institutions
such as Banks & Building Societies

Credit Unions

Securities Dealers & Insurance
Companies

Hire Purchase Companies
8

Micro Finance Enterprises

Utilities and Telecommunication
companies

Trade Creditors
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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

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


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)
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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
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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
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14
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
15

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
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

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.
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


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.
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

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.
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


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.
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Supervising Authority for Jamaica’s Credit
Reporting System
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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
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
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
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Questions…
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