THE CREDIT REPORTING BILL, 2013 MEMORANDUM

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1 THE CREDIT REPORTING BILL, 2013 MEMORANDUM The objects of this Bill are to- (a) (b) (c) (d) (e) enable credit information sharing and reporting; provide for the regulation of the conduct of credit reporting and credit reporting services; make provisions for the establishment of a Credit Data Repository; provide safe guards for data protection for customers of credit providers; and provide for matters connected with, or incidental to, the foregoing. MUMBA MALILA, S.C., Attorney-General

2 THE CREDIT REPORTING BILL, 2013 ARRANGEMENT OF SECTIONS Section PART I PRELIMINARY 1. Short title and commencement 2. Interpretation 3. Application PART II AUTHORITY OF THE BANK OF ZAMBIA 4. Supervisory and regulatory authority of the Bank of Zambia 5. Ownership of information 6. Delegation of authority 7. Register of credit reporting agencies 8. Establishment of central data repository PART III LICENSING OF CREDIT REPORTING AGENCIES 9. Eligibility and prohibition on operating without licence 10. Restriction to carry on business other than credit reporting business 11. Application for a licence 12. Issuance of licence 13. Refusal to issue licence 14. Suspension or revocation of license 15. Validity of the licence 16. Terms and conditions of a license 17. License not transferable 18. Minimum paid-up capital 19. Licensee to notify Bank of Zambia if circumstances change 20. Sale, lease or transfer of credit reporting agency 21. Handling of credit information when licence of credit reporting agency is revoked, 22. Notification of refusal to issue, reinstate, revoke or amend conditions of licence 2

3 PART IV GOVERNANCE AND MANAGEMENT OF CREDIT REPORTING AGENCIES Ownership and Control 23. Limitation on voting control 24. Regulation and divestment of other control 25. Ownership 26. Prohibition of ownership of shares by obscure legal arrangements Board of Directors and Senior Management 27. Composition and responsibilities of Board 28. Appointment of board members and senior management 29. Qualifications of board member and senior management PART V REGULATION OF CREDIT REPORTING 30. Authorised activities of a credit reporting agency 31. Collection of credit information 32. Disclosure of credit information Data Management and Quality Control 33. Storage and security of credit information 34. Retention period 35. Accuracy of credit information 36. Obligation of subscribers, Credit Reports 37. Credit reports 38. To whom credit reports may be provided 39. Prohibited content of credit report 40. Fees Provision of Credit Data by Credit Providers 41. Scope of data to be provided 42. Accuracy of data provided 3

4 Inspections 43. Inspection by Bank of Zambia 44. Restrictions on access to records 45. Supervisory actions Supervisory Actions PART VI CONSUMER RIGHTS AND PROTECTION 46. Consumer relations office 47. The right to information and data 48. Notice of denial of benefit or increase of cost of benefit 49. No condition precedent to disclosure 50. The right to challenge incorrect information 51. Record of challenges 52. Suspension to access 53. Bank of Zambia s order on inaccurate or incomplete information PART VII COMPLAINTS AND INVESTIGATION 54. Complaint 55. Investigation by Bank of Zambia 56. Restriction on investigation initiated by complaint 57. Continuation of investigation notwithstanding withdrawal of complaint 58. Enforcement notice 59. Variation or cancellation of enforcement notice PART VIII APPEALS 60. Reasons for decisions and right to be heard 61. Right of appeal 62. Appointment and convening of Tribunal 63. Powers of Tribunal 64. Decisions of Tribunal 4

5 PART X GENERAL 65. Unlawful collecting, of credit information 66. Transfer of credit information to places outside Zambia 67. Waiver of benefits ineffective; inclusion of certain clauses forbidden 68. Offences and penalties 69. Abetment and attempt punishable as offences 70. Offences by body corporate 71. Immunity 72. Power of Minister to make regulations 73. Power of the Bank of Zambia to prescribe 74. Guidelines 75. Carrying on credit reporting business before the commencement of this Act 76. Exemption 5

6 A BILL ENTITLED An Act to enable credit information sharing and reporting; to provide for the regulation of the conduct of credit reporting and credit reporting services; to provide for the establishment of a Credit Data Repository; to provide safe guards for data protection for customers of credit providers; and to provide for matters connected with, or incidental to, the foregoing. Enactment ENACTED by the Parliament of Zambia. PART I PRELIMINARY Short title and commencement Act No. of This Act may be cited as the Credit Reporting Act, 2013 and shall come into operation on such date as the Minister may, by Gazette notice, prescribe Interpretation 2. (1) In this Act, unless the context otherwise requires- Access log means a record of every access made to credit information held by a credit reporting agency; Act means the Credit Reporting Act; "Account" means any account between a credit provider and a person that involves the provision of credit, and includes any new account created 6

7 as the result of any scheme of arrangement involving one or more previous accounts; "Account data" means the account data referred to in Schedule 1. For account involving the provision of credit to another person for whom a person acts as guarantor, the account data of such account is, in addition to being account data relating to that other person as the borrower, deemed to be also account data relating to the person to such extent as represents the contingent liability of the person as guarantor; "Account general data" means the account general data referred to in Schedule 1; "Account repayment data" means the account repayment data referred to in Schedule 1; "Adverse action notice" means a notice issued by a credit provider to a consumer conveying denial or cancellation of, an increase in the cost of or other adverse or unfavourable change in the terms of the benefit as a result of information contained in a credit report; Appointed date means the relevant date or dates, as the case may be, on which this Act comes into operation; 7

8 Bank of Zambia means the Bank of Zambia of Zambia established under the Bank of Zambia of Zambia Act; Chief executive officer, in relation to a credit reporting agency, means the principal executive officer of the credit reporting agency for the time being, by whatever name called, and whether or not he is a director; Company has the meaning assigned to it in section 4 of the Companies Act 1965 [Act 125]; Constituent documents, in relation to a body, corporate or unincorporate, means the statute, charter, memorandum of association, articles of association, rules, by-laws, partnership agreement, or other instrument, under or by which the body is incorporated or established, and its governing and administrative structure and the scope of its functions, business, powers and duties as set out, whether contained in one or more documents; Consumer means any person who is applying for credit from, or who has been granted credit by, a credit provider and who is the subject of the credit information; 8

9 Correction, in relation to credit information, means and includes, without limitation, amendment, variation, modification or deletion; Court means the High court of Zambia; Credit means (a) any loan, overdraft facility or other kind of credit provided by a credit provider to and for the use of a person, or to and for the use of another person for whom a person acts as guarantor. (b) Financing under a lease or hire-purchase terms, provided that any amounts overdue under such lease or hire purchase agreement shall, for purposes of this Act, be deemed to be amounts in default under the lease or hire purchase contract; (c) any advance, loan, trade credit or other facility in whatever form or by whatever name called whereby the person to whom the advance, loan, trade credit or other facility is given has access, directly or indirectly, to the funds or property of the person giving it; (d) the giving of a guarantee or any security in relation to the obligations of any person; (e) any hire-purchase, leasing, factoring, debt trading and such similar dealings or transactions; or 9

10 (e) any other like dealing or transaction as may be prescribed by the Minister on the recommendation of the Bank of Zambia; Central Data Repository means a computerized mechanism created by the Bank of Zambia to receive and supply credit information to financial service providers and other institutions authorized by the Bank of Zambia, regarding the credit transaction of consumer, including off balance sheet operations; Credit information means the history of an individual or entity with regard to credit and financial obligations that a credit reporting agency may collect from a credit provider; Credit information processor, in relation to credit information, means any person, other than an employee of the credit reporting agency, who processes the credit information solely on behalf of the credit reporting agency, and does not process the credit information for any of his own purposes; Credit provider means any person that carries on a business involving the provision of credit and includes:- (a) a financial service provider within the meaning of the BFSA, Cap 387 of the Laws of Zambia; 10

11 (b) (c) (d) (e) a subsidiary of a financial service provider; a money lender licensed under the Money Lenders Act, Cap 398 of the Laws of Zambia; and a person whose business (whether or not the person carries on any other business) is that of providing finance for the acquisition of goods by way of leasing or hire-purchase. A person who provides a good or service on credit. Credit report means any record or information, whether in a written, oral or other form, that (a) has any bearing on a consumer s (i) eligibility to be provided with credit; (ii) history in relation to credit; or (iii) capacity to repay credit; and (b) is used, has been used or is capable of being used as one of the factors in establishing a consumer s eligibility for credit; Credit Reporting Agency means any data user who carries on a business of providing a consumer credit reference business: (a) for gain or profit (b) on a regular, co-operative and non profit basis 11

12 Credit reporting business means a business that involves the processing of credit information for the purpose of providing a credit report to another person, whether for profit, reward or otherwise, but shall not include the processing of credit information (a) for the purpose of discharging regulatory functions or that is required or authorized by or under any law; or (b) by a credit rating agency; Data system means any system, whether automated or otherwise, which is used, whether in whole or in part, by a credit reporting agency for the processing of credit information, and includes any document and equipment forming part of the system. Financial Service Provider means a Bank of Zambia, financial institution or financial business as defined in the Banking and Financial Services Act. Minister means the Minister responsible for finance; Officer, in relation to a credit reporting agency, includes the chief executive and any employee; Person includes an individual, a company, a partnership, an association and any group of persons acting in concert, whether or not incorporated; 12

13 Personal information means information about a consumer s character, reputation, health, physical or personal characteristics and mode of living, but does not include credit information; Processing, in relation to credit information, means collecting, recording, holding or storing the credit information or carrying out any operation or set of operations on the credit information, including (a) the organization, adaptation or alteration of credit information; (b) the retrieval, consultation or use of credit information; (c) the disclosure of credit information by transmission, transfer, dissemination or otherwise making available; or (d) the alignment, combination, correction, erasure or destruction of credit information; Record means a book, paper, document or thing, whether in electronic form or otherwise, that may contain information in respect to the finances or business of a credit reporting agency. Register means the Register of Credit Reporting Agencies established and maintained under section 7; 13

14 Relevant credit reporting agency, in relation to (a) an inspection, means the credit reporting agency who uses the data system which is the subject of the inspection; (b) a complaint, means the credit reporting agency specified in the complaint; (c) an investigation (i) in the case of an investigation initiated by a complaint, means the credit reporting agency specified in the complaint; (ii) in any other case, means the credit reporting agency who is the subject of the investigation; (d) an enforcement notice, means the credit reporting agency on whom the enforcement notice is served; Relevant person, in relation to a consumer, howsoever described, means (a) in the case of a consumer who is incapable of managing his own affairs, a person who is appointed by a court to manage those affairs, or a person authorized in writing by the consumer to act on behalf of the consumer; or (b) in any other case, a person authorized in writing by the consumer to make an access request, correction request, or both such requests, on behalf of the consumer; 14

15 Requestor, in relation to an access request or correction request, means the consumer or the relevant person on behalf of the consumer, who has made the request; Significant shareholding, means any direct or indirect shareholding or beneficial interest in excess of five per cent of the share capital of a financial service provider; Specified, where no mode is mentioned, means specified from time to time in writing; Subscriber means any person who has entered into a subscriber agreement with a credit reporting agency; Subscriber agreement means a written agreement providing a subscriber with access to credit information held by a credit reporting agency and is as specified in the Fourth Schedule; Use, in relation to credit information, does not include the act of collecting or disclosing such credit information; Unfavourable credit action means a denial or revocation of credit, an unfavourable change in the terms of an existing credit arrangement, or a 15

16 refusal to grant credit in substantially the amount or on substantially the terms as requested. Application 3. (1) This Act applies to credit reporting agencies licensed under this Act, consumers and credit providers. Provided that the requirements of this Act are not binding on the Bank of Zambia, except in so far as this Act expressly imposes a duty on the Bank of Zambia. PART II AUTHORITY OF THE BANK OF ZAMBIA Supervisory and regulatory authority of the Bank of Zambia 4. The Bank of Zambia shall for the purposes of this Act be the supervisory and regulatory authority to:- (a) license, regulate and supervise credit reporting agencies, data providers and credit information recipients and their agents; (b) maintain proper standards of conduct and acceptable credit reporting practices; (c) take measures to protect the interests of credit information subjects; (d) protect the integrity of the credit reporting system against abuses; (e) impose penalties for contravention of this Act; and 16

17 (f) undertake other activities necessary or expedient to give full effect to the provisions of this Act. Ownership of information 5. The information held by the credit reporting agency remains the property of the Bank of Zambia and where an agency winds up the information shall revert to the Bank of Zambia. Delegation of Authority 6. (1) The Bank of Zambia, may subject to such conditions as it may consider necessary, delegate to any person the performance of any of the powers conferred upon the Bank of Zambia, in this Act, including the management of the Central Data Repository on such conditions as the Bank of Zambia may determine. (2) The exercise of any of the Bank of Zambia s authority or the carrying out of any of the Bank of Zambia s responsibilities by a person to whom they are delegated is deemed to be the exercise or the carrying out by the Bank of Zambia. Register of Credit Reporting Agencies 7. (1) The Bank of Zambia shall establish and maintain a Register of Credit Reporting Agencies. (2) The Register shall contain the names and addresses of all credit reporting agencies which have been licenced under subsection 14(2) and any other particulars regarding such credit reporting agencies as may be determined by the Bank of Zambia. (3) Subject to subsection (4), the Bank of Zambia shall make the Register available for inspection by the 17

18 public, subject to such conditions as the Bank of Zambia may consider fit. (4) A person may on payment of the prescribed fee (a) inspect the Register; or (b) make a copy of or take extracts from an entry in the Register. (c) shall not use the information for commercial purposes or other reason unless through a court order. Establishment of central data repository 8. The Bank of Zambia may establish a Central Data Repository. A financial service provider and any credit provider shall be required to supply or furnish the Bank of Zambia with all the documents and information that is necessary to effectively maintain and manage the repository. PART III LICENSING OF CREDIT REPORTING AGENCIES Eligibility and prohibition on operating without license 9. (1) A person shall not establish or operate a credit reporting agency or carry out or conduct credit reporting services in Zambia unless such person is- (a) incorporated as a limited company under the Companies Act solely to carry out credit reporting activities; and (b) licenced under this Act. (2) A person who contravenes the provision of subsection (1) commits an offence and is liable, on conviction, to- 18

19 (a) in the case of a body corporate or other body of persons to a fine of not less than one hundred and fifty thousand penalty units, and (b) in the case of an individual to a fine of not less than one hundred thousand penalty units or to a term of imprisonment of not less than two years or to both. (3) In the case of a continuing offence, the offender shall, in addition to the penalties under subsection (2), be liable to a fine not exceeding five hundred penalty units for each day or part of a day during which the offence continues after conviction. Restriction to carry on business other than credit reporting business 10. (1) A credit reporting agency shall not carry on any business other than that of a credit reporting business, unless it has obtained the prior written approval of the Bank of Zambia. (2) A person who contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years or to both. Application for a licence 11. (1) An application for a licence to conduct credit reporting agency business shall be made to the Bank of Zambia in such form and accompanied by such fees as may be determined by the Bank of Zambia. (2) The application shall be accompanied by the following information and supporting documents- 19

20 (a) certified copies of the applicant s certificate of incorporation and articles of association; (b) names and the permanent residential addresses of the directors, key management personnel concerned with the management of the business, significant shareholders or beneficial owners including their educational and professional background; (c) the physical and postal addresses of its head office and the addresses of each branch proposed to be opened by the applicant; (d) feasibility study and business plan showing organizational structure, internal monitoring procedures, mission statement and goals, market analysis, ownership structure, governance structure, management structure, description of projected investments, projected financial statements for a minimum of three years, analysis of profitability and business continuity plan (e) the source and amount of its capital and documents that support the value of applicant s capital base as well as sources of funds; (f) an overview of operations including a description of systems, design of data collection and dissemination, management 20

21 (g) (h) processes, development schedule of the software required for operation, characteristics of products and services to be provided to users, policy on service provision, proposed security and control measures to prevent improper access to credit information, operational manuals designed to ensure that credit information provided is accurate and updated, the proposed fee and cost structure of products; proof of payment of non-refundable licence application fee; and such other information or documents as may be determined by the Bank of Zambia for the purposes of determining the application and suitability of the applicant. (3) At any time after receiving an application and before determining it, the Bank of Zambia may by written notice require the applicant to provide to the Bank of Zambia such additional information or documents or direct the applicant to comply with such other requirements as the Bank of Zambia may require within the time as specified by the Bank of Zambia. (4) if the requirement under subsection (3) is not complied with, the application for a licence shall be deemed to have been withdrawn by the applicant and shall not be 21

22 further proceeded with by the Bank of Zambia, but without prejudice to a fresh application being made by the applicant. (5) An applicant may withdraw an application by written notice to the Bank of Zambia at any time before approval is granted or refused. Issuance of licence 12. The Bank of Zambia shall, within one hundred and eighty days after issuing a letter to the applicant confirming that the application has been accepted, grant or refuse to grant the licence and communicate the reasons for its refusal to the applicant. Refusal to issue licence 13. (1) Subject to section 22, on receipt of an application pursuant to section 11, the Bank of Zambia may refuse to issue a licence if the Bank of Zambia has reasonable grounds to believe that: (a) based on the past conduct of the applicant, or any officers, directors or representatives of the applicant, the applicant will not carry on business with honesty and integrity and in accordance with this Act, the regulations or any term or condition of the licence; (b) the applicant has made a false or misleading statement, with respect to any matter that the Bank of Zambia considers material, in an application pursuant to section 11 or in any of the information or material submitted to the Bank of Zambia 22

23 in support of an application; (c) (d) the applicant directly or indirectly holds more than five percent share(s) or controlling interest in a debt collection agency or a financial service provider; or it is not in the public interest to issue the licence. (2) An appeal shall lie under Part VIII against a decision of the Bank of Zambia to refuse to issue a licence. Suspension or revocation of licence 14. (1) Subject to section 22, the Bank of Zambia may suspend or revoke a licence if it is satisfied that:- (a) the credit reporting agency has failed to comply with any of the terms and conditions of the licence; (b) the credit reporting agency has failed to comply with any of the provisions of this Act; (c) the issuance of the licence was induced by a false representation of fact by the credit reporting agency; (d) the credit reporting agency is in the course of being wound up or otherwise dissolved; (e) a receiver, manager or receiver and manager or an equivalent person has been appointed in respect of any property of the credit reporting agency; 23

24 (f) (g) (h) the credit reporting agency has ceased to carry on the credit reporting business for a continuous period of three months; the credit reporting agency carries on the credit reporting business in addition to other businesses without the prior written approval of the Bank of Zambia; or the credit reporting agency surrenders its licence to the Bank of Zambia. (2) An appeal shall lie under Part VIII against a decision of the Bank of Zambia to suspend or revoke a licence. (3) When a licence is revoked, the licensee shall, within fourteen days from the date of service of the notice of revocation of licence, surrender the licence to the Bank of Zambia, and the Bank of Zambia shall, as soon as practicable, publish notice of the revocation in the Government Gazette and in a newspaper of general circulation in Zambia, and may take any additional steps which, are necessary to inform the public of the revocation. (4) If the Bank of Zambia considers it appropriate to do so, the Bank of Zambia may reinstate a licence that has been suspended. Validity of the licence 15. A licence issued under this Act shall remain valid unless revoked. Terms and conditions of a licence 24

25 16. (1) On issuing or reinstating a licence, the Bank of Zambia may include any terms and conditions that the Bank of Zambia considers appropriate. (2) Subject to section 22, at any time after a licence is issued or reinstated, the Bank of Zambia may amend the terms and conditions of the licence. Licence not transferable 17. A licence issued or reinstated pursuant to this Part is not transferable. Minimum paidup capital 18. (1) The Bank of Zambia shall, by Gazette Notice prescribe the minimum amount of paid-up capital for credit reporting agencies. (2) Subject to subsection (4), every credit reporting agency shall maintain the minimum amount of paid-up capital as prescribed in subsection (1), and if such minimum amount is at any time increased, the credit reporting agency shall maintain the increased amount within such period as may be stated in the order that prescribed the increased amount, but such period shall not be less than three months. (3) Subject to subsection (4), no person shall be issued a licence under section 12 and no credit reporting agency shall carry on a credit reporting business if its paidup capital unimpaired by losses or otherwise is less than the minimum amount prescribed in subsection (1). 25

26 (4) Where the minimum paid-up capital of a credit reporting agency is less than the minimum amount prescribed at any time under subsection (1), the credit reporting agency may, with the written consent of the Bank of Zambia and subject to such terms and conditions as the Bank of Zambia may impose, carry on the credit reporting business. (5) A credit reporting agency which contravenes this section commits an offence and shall, upon conviction, be liable to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years or to both. Licensee to notify Bank of Zambia if circumstances change 19. (1) Within 30 days after a prescribed change in circumstances, an applicant or licensee shall notify the Bank of Zambia in writing. (2) Subject to section 22, after receiving information that there has been a change in circumstances in accordance with subsection (1), the Bank of Zambia may: (a) (b) (c) refuse to issue a licence; suspend or revoke a licence; or amend the terms and conditions of a licence. (3) Subject to section 22, if an applicant or licensee fails to comply with Subsection (1), the Bank of Zambia may: (a) refuse to issue a licence; 26

27 (b) (c) suspend or revoke a licence; or amend the terms and conditions of a licence. Sale lease or transfer of credit reporting agency 20. No person who is or has been licensed as a credit reporting agency shall sell, lease or transfer title or any of its files except to a credit reporting agency licensed pursuant to this or Act Provided that a credit reporting agency shall request the prior written approval of the Bank of Zambia for any arrangement or agreement by which the credit reporting agency or database of consumer information is to change control, be sold, or otherwise be merged with another entity. Handling of credit information when licence of credit reporting agency is revoked, etc. 21. (1) Any credit reporting agency which- (a) has ceased to be a credit reporting agency; or (b) has its licence revoked by the Bank of Zambia pursuant to section 14, shall, within the period as determined by the Bank of Zambia, hand over all the credit information in its databases or within its possession, in whatever form available, and the databases, including back-up files, to the Bank of Zambia. (2) Upon receipt of the credit information and databases from the credit reporting agency under subsection (1), referred to as the first credit reporting agency, the Bank of Zambia may decide either 27

28 (a) (b) (c) to destroy the credit information and databases; to keep the information in a Central Data Repository; or to hand over the credit information and databases to another credit reporting agency, referred to as the subsequent credit reporting agency, upon payment of compensation by the subsequent credit reporting agency to the first credit reporting agency of an amount to be agreed between the first credit reporting agency and the subsequent credit reporting agency. (3) In handing over the credit information and databases of the first credit reporting agency in pursuance of subsection (2)(c), the Bank of Zambia shall be satisfied that the subsequent credit reporting agency to which the credit information and databases is proposed to be handed over to has at least similar or equivalent financial abilities, expertise and facilities to that of the first credit reporting agency to assume the processing of the credit information. (4) The subsequent credit reporting agency shall, upon receipt of the credit information and databases under sub-section (2)(c) (a) inform the consumer by written notice of the fact that his credit information has 28

29 (b) been handed over to the subsequent credit reporting agency; and have the same duties and obligations in relation to that consumer as if it was the first credit reporting agency and shall comply with all the provisions of this Act. (5) Where the first credit reporting agency hands over any credit information and databases to a subsequent credit reporting agency in pursuance of subsection (2)(c), any consent obtained by the first credit reporting agency from a consumer under subsection 32(1)(a) shall lapse, and the subsequent credit reporting agency shall obtain the consent of the consumer under subsection 32(1)(a) if it intends to disclose the credit information of the consumer under that section. (6) A credit reporting agency which contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Notification of refusal to issue, reinstate, revoke or amend conditions of licence 22. (1) The Bank of Zambia shall not do any or all of the following without providing written notice to the applicant or licensee and giving the applicant or licensee an opportunity to make written representations: (a) (b) refuse to issue or reinstate a licence; suspend or revoke a licence; 29

30 (c) amend the terms and conditions of a licence. (2) Notwithstanding subsection (1), if the Bank of Zambia considers that it is necessary and in the public interest to take immediate action, the Bank of Zambia may immediately suspend or revoke a licence without providing written notice to the licensee and giving the licensee an opportunity to make written representations, but the Bank of Zambia shall give the licensee an opportunity to make written representations within 15 days after the date on which the Bank of Zambia suspends or revokes a licence. (3) On receiving an applicant s or licensee s written representations pursuant to this section, the Bank of Zambia shall, within 30 days: (a) consider the submissions and make a decision; (b) notify the applicant or licensee, in writing, of the Bank of Zambia s decision; (c) provide written reasons for the Bank of Zambia s decision; and (d) provide the applicant or licensee with information in respect to the right of appeal pursuant to Part VIII. 30

31 PART IV GOVERNANCE AND MANAGEMENT OF CREDIT REPORTING AGENCIES Ownership and Control Limitation on voting control 23. (1) Shares issued by a credit reporting agency shall be only of such classes or series as may be approved by the Bank of Zambia. (2) A person shall not, without the prior approval in writing of the Bank of Zambia- (a) acquire any beneficial interest in the voting shares of a credit reporting agency; or (b) enter into any voting trust or other agreement, that would enable the person to control more than fifty per centum of the total votes that could be cast on any general resolution at a general or special meeting of the credit reporting agency. Provided that this subsection shall not apply to a company which has more than fifty percent of its shares publicly listed on a securities exchange in a jurisdiction within or outside the Republic of Zambia acceptable to the Bank of Zambia. (3) A credit reporting agency shall not register any transfer of its voting control or right to any person if, as a result of the transfer, the person would contravene the provisions restricting the voting limits under this section without the prior approval of the Bank of Zambia. 31

32 (4) Where a person (in this subsection referred to as the "shareholder" acquires an interest in or control over voting shares in contravention of subsection (2), that person shall not, in person or by proxy, exercise the voting rights of any voting share owned or controlled by that person other than such shares as are registered in the name of that person on the share register of the credit reporting agency. (5) Where, on the date this section comes into force, a person owns or controls or is deemed, by the operation of any provision of this Act, to own or control shares in contravention of subsection (2), the person may retain any such shares or control, but may not sell or otherwise dispose of the same except in such a manner that no transferee from or successor to the person will thereby contravene that subsection. (6) Any person acting in contravention of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one hundred thousand penalty units or to imprisonment for a period not exceeding five years, or to both. Regulation and divestment of other control 24. (1) Any person who, by virtue of subsection (5) of section 23 has, immediately before the date of coming into force of this Act, the type of control of a credit reporting agency that would otherwise be prohibited under subsection (2) of that section shall dispose of the beneficial interest in the voting shares or terminate or modify the voting trust or 32

33 other arrangements so as to reduce the person s control to the extent permissible under subsection (2) of that section. (2) A person who is required by sub-section (1) to dispose of any beneficial interest in voting shares or terminate or modify the voting trust or other arrangements shall do so within a period specified by the Bank of Zambia; (3) The Bank of Zambia may, in any particular case, order a person to whom sub-section (1) applies to submit to the Bank a plan of action regarding the reduction of control and may give directions for the implementation of the plan. Ownership 25. (1) A person who has de jure or de facto control of a credit reporting agency shall not own any share in the capital of, or acquire or maintain control of, any other credit reporting agency without the prior written approval of the Bank ; (2) A person shall not hold shares as a nominee in a credit reporting agency; (3) A person acting in contravention of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one hundred thousand penalty units or to imprisonment for a period not exceeding five years, or to both. Prohibition of ownership of shares by obscure legal arrangements 26. (1) A legal arrangement shall not own shares in a credit reporting agency unless the ultimate beneficial 33

34 owners and persons who control it are identifiable and are fit and proper in accordance with section 29 of the Act. (2) In this section, a legal arrangement means an arrangement and/or agreement in which a person controls property and/or money for another person. Board of Directors and Senior Management Composition and responsibilities of Board 27. (1) The board of directors of a credit reporting agency shall consist of not less than five members the majority of whom shall be non-executive. (2) A board member shall not serve as a board member in more than one credit reporting agency. (3) The board of directors shall elect a nonexecutive chairperson from amongst their members. (4) Board members of a credit reporting agency shall- (a) have overall understanding of a credit reporting agency operations and information technology systems; (b) provide effective oversight of credit reporting agency affairs; (c) ensure regulatory compliance; (d) review and approve policies and procedures; (e) ensure a credit reporting agency maintains at all times effective system for internal control; (f) ensure that the credit reporting agency maintains a customer claims and inquiry 34

35 (g) service section to attend to customers who may be affected by the information contained in the database and who allege that the information is illegal, inaccurate, erroneous or outdated; and ensure that the credit reporting agency has adequate staff to undertake the functions of the Agency and to sufficiently meet customers demands. Appointment of board members and senior management 28. (1) A credit reporting agency shall not appoint any person to a post of senior management or member of a board of directors without obtaining prior written approval from the Bank of Zambia. (2) Where a member of senior management or board of directors of any credit reporting agency ceases to hold the post of senior management or board of directors, the credit reporting agency shall, within ten working days notify the Bank of Zambia of the cessation and reasons thereof. Qualifications of board member and senior management 29. (1) Notwithstanding anything to the contrary in the Companies Act or any other written law, a person shall not be qualified to be elected a director or to be appointed a chief executive officer, chief financial officer or manager of a licensee if that person- (a) is not a fit and proper person in accordance with the fit and proper criteria prescribed by the Bank to hold the 35

36 (b) (c) (d) (e) (f) relevant office in relation to integrity and professional expertise; is not above the age of twenty-one years; has been convicted of a felony or any offence involving dishonesty; has been declared or otherwise adjudged in any official proceedings to be mentally incompetent to manage one's own affairs; is under suspension or has been removed from office under this Act; has been a director or member, chief executive officer, chief financial officer or manager of a company which has been adjudged insolvent, entered into a composition with creditors, gone into liquidation, declared bankrupt or has entered into any other arrangement with creditors or taken any other action with similar effect in Zambia or elsewhere in the immediate preceding ten years unless that person shows that the person was not responsible for the insolvency, liquidation, composition with creditors, bankruptcy, other arrangement with creditors or other action with similar effect in Zambia or elsewhere; or (g) has been removed from office of trust on account of misconduct, abuse of office, corruption or breach of that trust in the immediate preceding ten years. 36

37 (h) In the case of an expatriate, the Bank of Zambia may prescribe additional and specific requirements, in addition to the requirements in (a) to (h) above, for their appointment. (2) Where a person, who is a director or chief executive officer of a credit reporting agency, at any time does not satisfy the criteria as set out in sub-section (1), that person shall immediately cease to hold the office and act in such capacity, and the credit reporting agency concerned shall immediately terminate his appointment in such capacity. (3) A credit reporting agency which contravenes subsections (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units. (4) In the case of a continuing offence, the offender shall, in addition to the penalty under subsection (3), be liable to a fine not exceeding one hundred thousand penalty units for each day or part of a day during which the offence continues after conviction. 37

38 PART V SUPERVISION AND REGULATION OF CREDIT REPORTING AGENCIES Conduct of Business of Credit Reporting Agencies Authorised activities of a credit reporting agency 30. (1) A credit reporting agency licensed under this Act may engage in the following activities (a) Obtain and receive customer information; (b) Store, manage, evaluate update and disseminate the customer information to subscribers in accordance with this Act; (c) Compile and maintain database and generate reports from customer information database; (d) Opine as to the creditworthiness of a customer; (e) Sell to institutions specialised literature and other informational material related to its activities; (f) Carry out market and statistical research relating to matter set out under this Act; and (g) Carry out any other activity as may be approved by the Bank from time to time in accordance with this Act. (2) The credit information maintained by the credit reporting agency shall not be transferred outside Zambia except in such cases as the Bank of Zambia may determine. 38

39 Collection of credit information 31. (1) No credit reporting agency shall collect any credit information about a consumer unless (a) the credit information is collected for a specific and lawful purpose directly related to an activity of the credit reporting agency and shall not be further processed in any manner incompatible with that purpose; (b) the collection of the credit information is necessary for or directly related to that purpose; and (c) the credit information is adequate but not excessive in relation to that purpose. (2) A credit reporting agency which contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. (3) The collection and use of credit information by a credit reporting agency under subsection (1) shall not require the consent of the consumer concerned. Disclosure of credit information 32. (1) No credit reporting agency shall disclose any credit information for any purpose or to any person unless 39

40 (a) the consumer has given his or her consent to the disclosure either in writing or evidenced in writing; (b) the disclosure is necessary for the purpose of preventing or detecting crime or investigations by a law enforcement agency of Government; or (c) the disclosure is required or authorized by or under any law, or by the order of a court. (2) Subject to subsection (3), where a credit reporting agency has obtained the consent of the consumer under sub-section (1)(a), it shall not disclose the credit information- (a) for any other purpose other than the purpose for which; or (b) to any other person other than the person to whom, the consumer has consented under that sub-section. (3) Where a credit reporting agency intends to disclose the credit information- (a) for any other purpose other than the purpose for which the consumer has consented to under sub-section (1)(a); or (b) to any other person other than the person to whom the consumer has consented to under sub-section (1)(a), the credit reporting agency shall obtain the consent of the consumer under sub-section (1)(a) to disclose the credit 40

41 information for that other purpose or to that other person, as the case may be. (4) The consent mentioned in subsection (1)(a) may be obtained by any method that permits the person to produce evidence that the consumer consented, including prominently displaying the information respecting the consent in a clear and comprehensible manner in an application for credit, insurance, employment or tenancy. (5) A credit reporting agency which contravenes this section commits an offence and shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Data Management and Quality Control Storage and security of credit information 33. (1) A credit reporting agency shall, when processing any credit information, take practical steps to protect the credit information from any loss, misuse, modification, unauthorized or accidental access or disclosure, alteration or destruction by having regard (a) to the nature of the credit information and the harm that would result from such loss, misuse, modification, unauthorized or accidental access or disclosure, alteration or destruction; (b) to the place or location where the credit information is stored; 41

42 (c) to any security measures incorporated into any equipment in which the credit information is stored; (d) to the measures taken for ensuring the reliability, integrity and competence of personnel having access to the credit information; and (e) to the measures taken for ensuring the secure transfer of the credit information. (2) Where processing of credit information is carried out by a credit information processor on behalf of the credit reporting agency, the credit reporting agency shall, for the purpose of protecting the credit information from any loss, misuse, modification, unauthorized or accidental access or disclosure, alteration or destruction, ensure that the credit information processor (a) provides sufficient guarantees in respect of the technical and organizational security measures governing the processing to be carried out; and (b) takes reasonable steps to ensure compliance with those measures. (3) Without limiting the generality of sub-sections (1) and (2), a credit reporting agency shall take the following measures to safeguard the credit information it holds against unauthorized access or misuse: (a) develop written policies and procedures to be followed by its credit information 42

43 processors, its employees, agents and contractors, or any other person providing services to it; (b) impose access authentication controls such as the use of passwords, credential tokens, digital signatures or other mechanisms; (c) provide information and training to its employees to ensure compliance with the policies, procedures and controls; (d) ensure that a subscriber agreement, in a form prescribed by the Bank, is in place before disclosing the credit information to a subscriber; (e) identify and investigate possible breaches of the subscriber agreement, policies, procedures and controls; (f) take prompt and effective action in respect of any breaches that are identified; (g) systematically review the effectiveness of the policies, procedures and controls and promptly remedy any deficiencies; and (h) maintain an access log. (4) A credit reporting agency shall ensure that if it is necessary for the credit information to be given to a person in connection with the provision of a service to the credit reporting agency, the credit reporting agency shall take all reasonable measures to prevent any loss, misuse, modification, unauthorized or accidental access or 43

44 disclosure, alteration or destruction of the credit information. (5) The access authentication controls required under sub-section (3)(b) shall include, in respect of an access made, a means of identifying both the subscriber and the specific person of the subscriber who have access to the credit information, or other person who has access to that credit information. (6) The access log required under sub-section (3)(h) (a) shall include a record of the time and date of access to the credit information, the identity of the subscriber or other person who has access to the credit information, and the purpose in relation to each access; and (b) shall identify or provide a means to identify the specific person of the subscriber who has accessed that credit information and the specific consumer whose credit information was so accessed. (7) A credit reporting agency shall ensure that the access log contains records of all accesses made for a period of not less than ten years preceding the date of the last access. (8) A credit reporting agency which contravenes this section commits an offence and shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand 44

45 penalty units or to imprisonment for a term not exceeding two years or to both. Retention period 34. Every credit reporting agency shall retain credit information maintained in its database until expiry of ten years from the date of final loan repayment, bankruptcy, assignment or write-off.. Accuracy of credit information 35. (1) A credit reporting agency shall not use or further process any credit information without taking such steps as are in the circumstances reasonable to ensure that the credit information is accurate, up-to-date, complete, relevant and not misleading. (2) A credit reporting agency shall, when undertaking a comparison of credit information within its control with any other credit information for the purpose of producing or verifying information about an identifiable consumer, take such measures as are reasonably practicable to avoid the incorrect matching of the credit information. (3) Without limiting the generality of subsection (1), a credit reporting agency shall (a) establish and maintain controls to ensure that, as far as is reasonably practicable, only credit information that is accurate, up-to-date, complete, relevant and not misleading is used or further processed; 45

46 (b) (c) monitor credit information to ensure that it is accurate, up-to-date, complete, relevant and not misleading; and conduct regular checks on compliance with the controls. (4) A credit reporting agency which contravenes this section commits an offence and shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Obligation of subscribers, etc. 36. (1) Any subscriber or other person, including a person providing services to a credit reporting agency, who has access to the credit information processed by the credit reporting agency shall take appropriate measures to safeguard the credit information against any unauthorized or improper access, use, modification or disclosure, including (a) developing written policies and procedures to be followed by its employees, agents and contractors; (b) establishing controls, including (c) (i) the use of passwords, credential tokens, digital signatures or other mechanisms; and (ii) user identification; providing information and training to ensure compliance with the policies, procedures and controls; 46

47 (d) monitoring usage and regularly checking compliance with the policies, procedures and controls; (e) taking appropriate action in relation to identified breaches of the policies, procedures and controls; and (f) maintenance of logs of all accesses, amendments and audit trails to the credit information provided to it by the credit reporting agency. (2) A person who contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not less than one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Credit Reports Credit reports 37. Every credit reporting agency shall adopt all reasonable procedures to ensure credit reports are accurate and fair. To whom credit reports may be provided 38. (1) No credit reporting agency shall knowingly provide to any person any information from the files of the credit reporting agency except in a credit report provided: (a) to a person who the credit reporting agency has reason to believe: (i) intends to use the information in connection with the extension of credit to the consumer to whom the information relates or 47

48 the purchase or collection of a debt of the consumer to whom the information relates; (ii) intends to use the information in connection with the entering into or renewal of a tenancy agreement; (iii) intends to use the information for employment purposes; (iv) intends to use the information in connection with the underwriting of insurance involving the consumer; (v) intends to use the information to determine the consumer s eligibility for any matter pursuant to any law in force in Zambia if the information is relevant to the eligibility requirement; (vi) has a direct business need for the information in connection with a business or credit transaction involving the consumer that is not mentioned in sub clauses (i) to (v); (vii) intends to use the information for the purpose of updating the information in a credit report previously provided to the person for one of the reasons mentioned in sub clauses (i) to (vi); 48

49 (b) to a law enforcement agency in Zambia for an investigation or for a prosecution; (c) in response to a court order; (d) in accordance with the written instructions of the consumer to whom the information relates; or (e) in response to an order or direction made by the Bank pursuant to this Act. (2) No person shall knowingly obtain any information from the files of a credit reporting agency in respect to a consumer except for the purposes described in subsection (1). (3) Notwithstanding subsections (1) and (2), a credit reporting agency may provide identifying information in respect to any consumer, limited to the consumer s name, address, former addresses and places of employment to the following, even though the information is not intended to be used for a purpose mentioned in subsection (1): (a) (b) (c) an investigation agency of the Government of Zambia; a police officer acting in the course of his or her duties; a local authority in Zambia or any agency of a local authority. 49

50 Prohibited content of credit report 39. (1) No credit reporting agency shall include any of the following in a credit report: (a) (b) (c) (d) (e) (f) (g) any information unless the name and address of the source of the information is recorded or retained in its files, or can be readily ascertained by the consumer; any information not based on the most reliable evidence reasonable available any unfavourable personal information unless it has made reasonable efforts to corroborate the evidence on which the personal information is based; information as to the bankruptcy of a consumer five years after the date of discharge unless the consumer has been bankrupt more than once; information as to any judgment against a consumer three years after the judgment was given unless the judgment, creditor, or his or her agent, confirms that the judgment remains unpaid, and the confirmation appears in the file; information regarding any debt three years after the last payment was made or if no payment was made, five years after the debt was incurred; information about a court action or other court proceeding more than five years after the date of issue unless the current status of the action or proceeding has 50

51 been ascertained and is included in the report; (h) information as to a conviction of the consumer for a crime five years after the date of the conviction or, if the conviction resulted in imprisonment, three years after the date of the consumer s release or parole, but no information about a conviction shall be reported if, after the conviction, the consumer has been granted a pardon; (i) subject to clause (h), information regarding any criminal charges against the consumer unless the charges have resulted in conviction; (j) information as to any judgment against the consumer unless mention is made of the name and, if available, the address of the judgment creditor or the creditor s agent as given at the date of entry of the judgment and the amount of the judgment; (k) information about the payment or nonpayment of fines after three years after the fine was imposed; (l) any information given orally unless the content of the oral report is noted in writing in the file; (m) information about the race, creed, colour, ancestry, ethnic origin, religion, or political affiliation of a consumer state of 51

52 health or criminal record except financial fraud and other similar types of offences; (n) any other information adverse to the consumer s interest that is more than three years old unless voluntarily supplied by the consumer to the credit reporting agency; (o) any information that is not stored in a form capable of being produced pursuant to subsection 47(1); (p) any other information as may be prescribed by the Bank. (2) A credit reporting agency which contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Fees 40. A credit reporting agency may charge a fee for its services and shall notify the Bank of its fee structure through periodic returns submitted to the Bank. Provision of Credit Data by Credit Providers Scope of data to be provided 41. Where a credit provider has collected any credit information in relation to a person, it may thereafter provide to a credit reporting agency any of following items of credit information. (1) general particulars of the person and in the case of an individual, being: name, sex, address, contact 52

53 information, date of birth, National Identification Number or travel document number; (2) credit application data, namely, the fact that the person has made an application for credit, the type and the amount of credit sought; (3) account data as described in Schedule 1, provided that the credit provider shall not provide to the credit reporting agency: (i) account data of any account which has been terminated by full repayment (excluding payment by refinancing of the debit balance on the account by the credit provider) prior to the effective date; (ii) account repayment data held by it prior to the effective date of any account which already existed prior to the effective date and continues to exist after that date, unless such account repayment data reveal a currently outstanding default, in which case, the credit provider may provide to the credit reporting agency the default data relating to such default; or (iii) account data relating to a mortgage loan, unless such account data reveal a currently outstanding material default, in which case, the credit provider may provide to the credit reporting agency the account general data together with the default data relating to such material default; (iv)) credit card loss data, being: (a) notice that the credit provider, as card issuer, has suffered financial loss as the result of an unauthorized transaction carried out through the use of a credit card that has been reported lost, for an amount in excess of the maximum liability 53

54 (b) (c) (d) of the person before notification to the card issuer of the loss of the card; the amount of such maximum liability and the amount of financial loss suffered by the card issuer; the reported date of the loss of the credit card, and the date of such report; and a description of the event (misplacement of wallet, theft, robbery, etc.) reported to have given rise to the loss of the credit card and any follow-up action including, where applicable, any report to the police, subsequent investigation or prosecution and result, finding of the lost card, etc. (8) If, in the absence of any applicable exemption, a credit provider provides to a credit reporting agency any credit information other than those permitted under this clause, this will constitute an offence. Accuracy of data provided 42. (1) A credit provider shall take all reasonable practicable steps to ensure the accuracy of data that is provided to a credit reporting agency. (2) If subsequent to the provision of data to a credit reporting agency the credit provider discovers any inaccuracy in the data, it shall update such data held in the database of the credit reporting agency as soon as reasonably practicable. (3) A credit provider that fails to take reasonable steps to check the accuracy of the data before providing such 54

55 data to a credit reporting agency, or if it fails to update the data held in the database of the credit reporting agency after discovering such inaccuracy, commits an offence. Inspections Inspection by Bank of Zambia 43. (1) The Bank of Zambia may cause an inspection to be made of a credit reporting agency to determine whether the requirements of this Act and regulations, and other laws of Zambia have been complied with in the conduct of its business. (2) For the purposes of an inspection pursuant to this section, the Bank of Zambia may, at any time, inquire into and inspect: (a) the business affairs of the credit reporting agency; and (b) any data system used by the credit reporting agency. (3) The credit reporting agency shall, during inspection, furnish any record and information requested by the Bank of Zambia. (4) The Bank of Zambia shall, after conducting an inspection, provide the credit reporting agency with a report of findings on deficient areas requiring correction and the credit reporting agency shall provide an action plan for correction of deficiencies. 55

56 Restrictions on access to records 44. (1) Any information obtained by the Bank of Zambia as a result of an inspection pursuant to this Act is not open to inspection or available for access except by those persons who are authorised in writing by the Bank of Zambia to inspect or to have access to the information. (2) Unless authorised by this Act or by any other law or with the consent of the person to whom any information relates, no person authorised by the Bank of Zambia to inspect or have access to the information shall: (a) communicate or allow to be communicated any information obtained pursuant to this Act to any person who is not legally entitled to the information; or (b) allow any person who is not legally entitled to the information obtained pursuant to this act to inspect or have access to it. (3) Notwithstanding subsections (1) and (2), the Bank of Zambia may authorise the release of, inspection of or access to the information mentioned in those subsections to or by any person employed by a government, regulatory authority, law enforcement agency or investigative body inside or outside Zambia; provided that: (a) the information will be used solely for the purpose of administering or enforcing an 56

57 Act or law of Zambia or of another jurisdiction outside Zambia; (b) the Bank of Zambia believes that it is in the public interest to allow the release, inspection or access. (4) No person to whom information is provided pursuant to this section is compellable to give evidence concerning that information unless: (a) the person to whom the information relates consents; or (b) a court orders the evidence to be given (5) On an application for an order pursuant to subsection (4)(b): (a) (b) the Bank of Zambia and the person to whom the information relates are entitled to appear before the court and to make submissions; and the person seeking the order compelling the evidence has the onus of showing why it is in the public interest that the order be made. Supervisory Actions Supervisory actions 45. (1) Where- 57

58 (a) a credit reporting agency refuses to comply with an order or directive of the Bank of Zambia under this Act; (b) a credit reporting agency refuses to permit an inspection to be made as provided by this Act or obstructed an examination; (c) in the opinion of the Bank of Zambia an inspection instituted under this Act shows- (i) that the credit reporting agency concerned conducts its business in breach of any written law or engages in a course of conduct that is unsafe or unsound; (ii) that for any reason the credit reporting agency is unable, or is likely to become unable, to continue its operations in the ordinary course of its business; or (iii) the credit reporting agency s capital is less than the prescribed minimum; the Bank of Zambia shall take supervisory action against the credit reporting agency. (2) The supervisory action the Bank of Zambia may take, without prejudice to any other course of action or penalties under the Act, includes- 58

59 (a) taking possession of a credit reporting agency; (b) imposing penalties on the offending member of the management to be met personally; (c) appointing a person, suitably qualified and competent in the opinion of the Bank of Zambia, to manage the affairs of the credit reporting agency for such period as shall be necessary to rectify the problem; (d) removing or suspending from the office any director, officer or employee of a credit reporting agency and requiring the credit reporting agency to reconstitute its board of directors within such period as shall be specified; (e) restricting the credit reporting agency s licence; (f) suspending the credit reporting agency s licence for a period not exceeding six months; (g) revoking the credit reporting agency s the licence; and (h) imposing any other sanctions as the Bank of Zambia may deem appropriate in the circumstances. PART VI CONSUMER RIGHTS AND PROTECTION 59

60 Consumer relations office 46. Every credit reporting agency shall establish a consumer relations office to deal with all requests made by the consumers on credit information stored in the credit reporting agency database. The right to information and data 47. (1) A consumer shall have the right to- (a) know the nature and substance of all information in the files of a credit reporting agency respecting the consumer at the time of the request; (b) know the sources of its information, unless the consumer is able to readily ascertain those sources; (c) know the names of any person to whom a credit report has been provided within the preceding six months respecting the consumer; (d) have access to credit reports respecting the consumer that is kept in a database administered by a credit reporting agency; (e) request a credit reporting agency for a free copy of the consumer s credit report at least once per year and within thirty days of receiving an adverse action notice issued under section 48(1); and (f) challenge information contained in the file pursuant to section 50 and the manner in which a dispute may be made. (2) A credit reporting agency shall make the disclosures required pursuant to subsection (1) to the consumer: 60

61 (a) (b) (c) (d) in person, if the consumer appears in person; by telephone, if the consumer has made a written request for telephone disclosure; or by mail, if the consumer has made a written request for disclosure by mail; or by any other means as prescribed by the Bank of Zambia. (3) The credit reporting agency shall require the consumer to submit positive identification before making the disclosure required pursuant to subsection (1). (4) The credit reporting agency shall, within five working days of receiving a request and such particulars as the credit reporting agency may reasonably require to identify the consumer, provide to the consumer a hard copy or unedited electronic format of all information relating to the consumer held by the credit reporting agency. (5) Subject to subsection (7), a credit reporting agency which is unable to comply with an access request shall (a) inform the consumer by notice in writing that it is unable to comply with the access request and the reasons why it is unable to do so; and (b) comply with the access request to the extent that it is able to do so. 61

62 (6) Where the consumer is given access to, or supplied with a copy of the credit information or credit report pursuant to subsection (1), the credit reporting agency shall advise the consumer that he may request for the correction of that credit information or credit report under section 50. (7) A credit reporting agency may refuse to comply with an access request made under subsection (1) if (a) the credit reporting agency is not supplied with such information as it may reasonably require in order to satisfy itself as to the identity of the consumer; or (b) the credit reporting agency is not supplied with such information as it may reasonably require to locate the credit information to which the access request relates; (c) the credit reporting agency cannot comply with the access request without disclosing credit information relating to another person who can be identified from that information, unless (i) that other person has consented to the disclosure of the credit information to the requestor; or (ii) it is reasonable in all the circumstances to comply with the access request without the consent of the other person; 62

63 (d) any other credit reporting agency controls the processing of the credit information to which the access request relates in such a way as to prohibit the first-mentioned credit reporting agency from complying, whether in whole or in part, with the access request; (e) providing access would constitute a violation of an order of a court; (f) providing access would disclose confidential commercial information; or (g) such access to credit information is regulated by another law. (8) Where the credit reporting agency refuses to comply with an access request under subsection (1), the credit reporting agency shall not later than twenty-one days from the date of receipt of the access request, by notice in writing, inform the requestor of the refusal and the reasons for the refusal. (9) Every credit reporting agency shall provide trained personnel to explain to a consumer any information provided to the consumer pursuant to this section. Notice of denial of benefit or increase of cost of benefit 48. (1) If a credit provider using information contained in a credit report denies a benefit in whole or in part to a consumer, or increases the cost of the benefit to the consumer, as a result of information contained in a credit report respecting that consumer, the credit provider shall 63

64 provide an adverse action notice to the consumer of the denial or the increase. (2). The user of information must give the notice mentioned in subsection (1): a) within 30 days after making the decision; and b) in person or by mail to the last known address of the consumer. (3) If the consumer makes a written request to the user within 60 days after receiving the notice, the user of the information must provide the consumer with the name and address of the credit reporting agency that provided the credit report. (4) The notice mentioned in subsection (1) must advise the consumer that the consumer can make the request mentioned in subsection (3). No condition precedent to disclosure 49. No credit reporting agency shall require a consumer to give an undertaking or waive or release any right as a condition precedent to the consumer s access to the consumer s file. The right to challenge incorrect information 50. (1) A credit reporting agency shall inform the consumer of their right to challenge the information maintained in the credit reference system at the time the consumer requests a copy of their credit report. 64

65 (2) Where a consumer believes that credit information maintained in the credit information system is inaccurate, erroneous or outdated, the consumer shall notify the credit reporting agency in writing of the disputed information. (3) Where a credit reporting agency is challenged of issuing a credit report containing inaccurate, erroneous or outdated information, it shall (a) within five working days from date of receipt of the challenge- (i) endorse the disputed credit report with a note on specific items which are subject to dispute, until such time when the dispute is resolved; (ii) give the data provider a notice of dispute requesting confirmation from the data provider as to the accuracy of the information. (b) within ten working days from date of receipt of the challenge, investigate and correct the disputed credit information where the dispute emanates from the credit reporting agency. (3) Where a data provider receives a notice of dispute from the credit reporting agency it shall, within ten working days of receiving the notice, complete all necessary investigations into the disputed information and give the credit reporting agency a notice of resolution, advising whether the disputed information is to be deleted, corrected or remain unchanged. 65

66 (4) Upon receipt of a notice of resolution or an amendment notice from a data provider, the credit reporting agency shall, within five working days of such receipt- (a) send a notice of change to any subscriber that has in the previous twelve months obtained a credit report from the credit reporting agency containing the incorrect information; (b) notify the consumer of the outcome of the disputed credit information. (5) A consumer whose disputed credit information has been corrected shall be provided with a correct credit report free of charge. (6) Where the data provider maintains that the disputed information is accurate and the consumer maintains that disputed information is inaccurate, the consumer may appeal to the Bank of Zambia. (7) Where the investigation proves that the disputed information is correct, the credit reporting agency may charge the consumer for costs incurred in conducting the investigation. Record of challenges 51. Every credit reporting agency shall maintain a record of challenged incorrect information in a format to be prescribed by the Bank of Zambia. 66

67 Suspension to access 52. Where a data provider fails to respond or conclude challenges within ten working days, the credit reporting agency shall suspend access to credit information and report the occurrence to the Bank of Zambia. Bank of Zambia s order on inaccurate or incomplete information 53. If the Bank of Zambia is of the opinion that any information contained in a file of a credit reporting agency is inaccurate, incomplete, or does not comply with this Act or the regulations, the Bank of Zambia may make an order doing any or all of the following: (a) directing the credit reporting agency to amend or delete any information in the file; (b) restricting or prohibiting the credit reporting agency from using any information in the file; (c) Directing the credit reporting agency to provide notice of any amendment, deletion, restriction or prohibition made pursuant to clause (a) or (b) to any person who has received a credit report. PART VII COMPLAINT AND INVESTIGATION 67

68 Complaint 54. (1) Any person or relevant person may make a complaint in writing to the Bank of Zambia about an act, practice or request (a) specified in the complaint; (b) that has been done or engaged in, or is being done or engaged in, by the relevant credit reporting agency specified in the complaint; (c) that relates to credit information of which the person is the consumer; and (d) that may be a contravention of the provisions of this Act, including any codes of practice. Investigation by Bank of Zambia 55. (1) Where the Bank of Zambia receives a complaint under section 54 the Bank of Zambia shall, subject to section 56 carry out an investigation in relation to the relevant credit reporting agency to ascertain whether the act, practice or request specified in the complaint contravenes the provisions of this Act. (2) Where the Bank of Zambia has reasonable grounds to believe that an act, practice or request has been done or engaged in, or is being done or engaged in, by the relevant credit reporting agency that relates to credit information and such act, practice or request may be a contravention of the provisions of this Act, the Bank of Zambia may carry out an investigation in relation to the relevant credit reporting agency to ascertain whether the act, practice or request contravenes the provisions of this Act. 68

69 Restriction on investigation initiated by complaint 56. (1) The Bank of Zambia may refuse to carry out or continue an investigation initiated by a complaint if it is of the opinion that, having regard to all the circumstances of the case (a) (b) (c) (d) the complaint, or a complaint of a substantially similar nature, has previously initiated an investigation as a result of which the Bank of Zambia was of the opinion that there has been no contravention of the provisions of this Act; the act, practice or request specified in the complaint is trivial; the complaint is frivolous, vexatious or is not made in good faith; or any investigation or further investigation is for any other reason unnecessary. (2) Notwithstanding the generality of the powers conferred on the Bank of Zambia by this Act, the Bank of Zambia may refuse to carry out or continue an investigation initiated by a complaint (a) if (i) (ii) the complainant; or in the case where the complainant is a relevant person in relation to a consumer, the consumer or relevant person, as the case may be, has had actual knowledge of the act, practice or request specified in the complaint for more than two years 69

70 immediately preceding the date on which the Bank of Zambia received the complaint, unless the Bank of Zambia is satisfied that in all the circumstances of the case it is proper to carry out or continue the investigation; (b) (c) (d) (e) if the complaint is made anonymously; if the complainant cannot be identified or traced; if the Bank of Zambia is satisfied that the relevant credit reporting agency has not been a credit reporting agency for a period of not less than two years immediately preceding the date on which the Bank of Zambia received the complaint; or in any other circumstances as it deems fit. (3) Where the Bank of Zambia refuses under this section to carry out or continue an investigation initiated by a complaint, it shall, as soon as practicable but in any case not later than thirty days after the date of receipt of the complaint, by notice in writing served on the complainant inform the complainant of the refusal and of the reasons for the refusal. (4) An appeal may be made to the Minister against any refusal specified in the notice under subsection (3) by the complainant on whom the notice was served or if the complainant is a relevant person, by the consumer in respect of whom the complainant is the relevant person. 70

71 Continuation of investigation notwithstanding withdrawal of complaint 57. Where the Bank of Zambia is of the opinion that it is in the public interest so to do, it may carry out or continue an investigation initiated by a complaint notwithstanding that the complainant has withdrawn the complaint and, in any such case, the provisions of this Act shall apply to the complaint and the complainant as if the complaint had not been withdrawn. Enforcement Notice 58. (1) Where, following the completion of an investigation about an act, practice or request specified in the complaint, the Bank of Zambia is of the opinion that the relevant credit reporting agency (a) (b) is contravening a provision of this Act; or has contravened such a provision in circumstances that make it likely that the contravention will continue or be repeated, then the Bank of Zambia may serve on the relevant credit reporting agency an enforcement notice (a) stating that opinion; (b) specifying the provision of this Act on which that opinion is based and the reasons for that opinion; (c) directing the relevant credit reporting agency to take such steps as are specified in the enforcement notice to remedy the contravention or, as the case may be, the matters occasioning it within such period as is specified in the enforcement notice; and 71

72 (d) directing, where necessary, the relevant credit reporting agency to cease processing the credit information pending the remedy of the contravention by the relevant credit reporting agency. (2) In deciding whether to serve an enforcement notice, the Bank of Zambia shall consider whether the contravention or the matter to which the enforcement notice relates has caused or is likely to cause damage or distress to the consumer of the credit information to which the contravention or matter relates. (3) The steps as specified in the enforcement notice to remedy the contravention or matter to which the enforcement notice relates may be framed (a) to any extent by reference to any code of practice; or (b) so as to afford the relevant credit reporting agency a choice between different ways of remedying the contravention or matter. (4) The period specified in an enforcement notice under subsection (1) for taking the steps specified in it shall not expire before the end of the period specified in section 61 within which an appeal against the enforcement notice may be made and, if such an appeal is made, those steps need not be taken pending the determination or withdrawal of the appeal. 72

73 (5) Notwithstanding subsection (4), if the Bank of Zambia is of the opinion that by reason of special circumstances the steps specified in the enforcement notice should be taken as a matter of urgency (a) he may include a statement to that effect in the enforcement notice together with the reasons why he is of that opinion; and (b) where such a statement is so included, subsection (4) shall not apply but the enforcement notice shall not require those steps to be taken before the end of the period of seven days from the date on which the enforcement notice was served. (6) An appeal may be made to the Minister against an enforcement notice by the relevant credit reporting agency in accordance with Part VIII. (7) Where the Bank of Zambia (a) forms an opinion referred to in subsection (1) in respect of the relevant credit reporting agency at any time before the completion of an investigation; and (b) is also of the opinion that, by reason of special circumstances, an enforcement notice should be served on the relevant credit reporting agency as a matter of urgency, he may so serve the enforcement notice notwithstanding that the investigation has not been completed and, in any such case 73

74 (i) the Bank of Zambia shall, without prejudice to any other matters to be included in the enforcement notice, specify in the enforcement notice the reasons as to why he is of the opinion referred to in sub-section (b); and (ii) the other provisions of this Act, including this section, shall be construed accordingly. (8) A person who fails to comply with an enforcement notice commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Variation or cancellation of enforcement notice 59. The Bank of Zambia may, on its own initiative or on the application of a relevant credit reporting agency, vary or cancel an enforcement notice served under sub-section 52(1) by notice in writing to the relevant credit reporting agency if the Bank of Zambia is satisfied with the action taken by the relevant credit reporting agency to remedy the contravention. PART VIII APPEALS Reasons for decisions and right to be heard 60. (1) Where the Bank of Zambia makes any decision against which, as provided by this Act, an appeal lies under this Chapter, the Bank of Zambia shall, by notice 74

75 in writing inform the applicant or other person affected by the decision of the reasons for the decision. (2) The decision of the Bank of Zambia shall remain in force unless set aside by the Tribunal on an appeal or by a Court. Right of appeal 61. (1) The person who is the subject of a Bank of Zambia s decision (hereinafter called the "appellant") may, within seven days of receipt of the notice of the decision, notify the Minister that he desires to appeal against the decision. Appointment and convening of Tribunal 62. Within seven days after receipt of a notice under section 61, the Minister shall appoint and convene an Appeal Tribunal consisting of a Chairperson who is an advocate of the High Court of not less than seven years standing and two other persons having qualifications and experience in relation to the matters involved in the appeal. Powers of Tribunal 63. (1) The Appeal Tribunal shall determine the appeal on its merits, having regard to the provisions of this Act and the public interest, and may confirm, vary or quash the decision of the Bank of Zambia. (2) The Tribunal may determine its own procedure and is not bound by the rules of evidence, and may inform itself of any matter in such manner as it sees fit. (3) The Appeal Tribunal shall afford the appellant the right to appear by himself or by counsel or agent. 75

76 Decisions of Tribunal 64. (1) The decision of the Tribunal is final and binding on the parties to the appeal except as to any point of law. (2) An appeal against the decision of an Appeal Tribunal shall lie to the High Court. PART IX GENERAL Unlawful collecting, etc., of credit information 65. (1) A person shall not knowingly or recklessly, without the consent of the credit reporting agency (a) collect or disclose credit information that is held by the credit reporting agency; or (b) procure the disclosure to another person of credit information that is held by the credit reporting agency. (2) Subsection (1) shall not apply to a person who shows (a) that the collecting or disclosing of credit information or procuring the disclosure of credit information (i) (ii) was necessary for the purpose of preventing or detecting a crime or for the purpose of investigations; or was required or authorised by or under any law or by the order of a court; 76

77 (b) (c) that he acted in the reasonable belief that he had in law the right to collect or disclose the credit information or to procure the disclosure of the credit information to the other person; or that he acted in the reasonable belief that he would have had the consent of the credit reporting agency if the credit reporting agency had known of the collecting or disclosing of credit information or procuring the disclosure of credit information and the circumstances of it. (3) A person who collects or discloses credit information or procures the disclosure of credit information in contravention of subsection (1) commits an offence. (4) A person who sells credit information commits an offence if he has collected the credit information in contravention of subsection (1). (5) A person who offers to sell credit information commits an offence if (a) he has collected the credit information in contravention of subsection (1); or (b) he subsequently collects the credit information in contravention of subsection (1). 77

78 (6) For the purposes of sub-section (5), an advertisement indicating that credit information is or may be for sale is an offer to sell the credit information. (7) A person who commits an offence under this section shall, upon conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Transfer of credit information to places outside Zambia 66. (1) A credit reporting agency shall not transfer any credit information of a consumer to a place outside Zambia unless prior approval has been given by the Bank of Zambia, by notification published in the Gazette. (2) For the purposes of subsection (1), the Bank of Zambia may specify any place outside Zambia if (a) there is in that place in force any law which is substantially similar to that as provided under this Act, or that serves the same purposes as this Act; or (b) that place ensures an adequate level of protection in relation to the processing of credit information which is at least equivalent to the level of protection afforded by this Act. (3) Notwithstanding subsection (1), a credit reporting agency may transfer any credit information to a place outside Zambia if 78

79 (a) the consumer has given his consent to the transfer; (b) the transfer is necessary for the performance of a contract between the consumer and the credit reporting agency; (c) the transfer is necessary for the conclusion or performance of a contract between the credit reporting agency and a subscriber or other person which (i) is entered into at the request of the consumer; or (ii) is in the interests of the consumer; (d) the transfer is for the purpose of any legal proceedings or for the purpose of obtaining legal advice or establishing, exercising or defending legal rights; (e) the credit reporting agency has reasonable grounds for believing that in all circumstances of the case (i) the transfer is for the avoidance or mitigation of unfavorable credit action against the consumer; (ii) it is not practicable to obtain the consent in writing of the consumer to that transfer; and (iii) if it was practicable to obtain such consent, the consumer would have given his consent; (f) the credit reporting agency has taken all reasonable precautions and exercised all due diligence to ensure that the credit 79

80 information will not in that place be processed in any manner which, if that place is Zambia, would be a contravention of this Act; or (g) the transfer is necessary in order to protect the interests of the consumer or the database of credit information owned by the credit reporting agency. (4) Where the Bank of Zambia has reasonable grounds for believing that in a place as specified under subsection (1) there is no longer in force any law which is substantially similar to that as provided under this Act, or that serves the same purposes as this Act (a) the Bank of Zambia shall either cancel or amend the notification made under subsection (1), to cause that place to cease to be a place to which credit information may be transferred under this section; and (b) the credit reporting agency shall cease to transfer any credit information of a consumer to such place with effect from the time as specified by the Bank of Zambia in the notification. (5) A credit reporting agency which contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred and fifty thousand penalty units or to imprisonment for a term not exceeding two years or to both. Waiver of benefits ineffective; inclusion of certain clauses forbidden 80

81 67. Every agreement or bargain, verbal or written, express or implied, that states or implies any of the following is void: (a) that the provisions of this act or the regulations made pursuant to this Act do not apply; (b) that any right or remedy provided by this Act or the regulations made pursuant to this Act does not apply; (c) that any right or remedy provided by this act or the regulations made pursuant to this Act is in any way limited, modified or abrogated. Offences and penalties 68. (1) No person shall: (a) (b) fail to comply with any order or direction made pursuant to this Act; or contravene any provision of this Act or the regulations. (2) No person shall make a false or misleading statement in any application or in any proceeding or in response to any inspection or investigation. (3) Every person who contravenes any provision of this Act or the regulations is guilty of an offence. 81

82 (4) Every person who is guilty of an offence is liable on conviction: (a) For a first offence: i. In the case of an individual, to a fine of not more than one hundred thousand penalty units or to imprisonment for a term of not more than one year or to both; and ii. In the case of a corporation, to a fine of not more than two hundred and fifty thousand penalty units; and (b) For a second or subsequent offence: i. In the case of an individual, to a fine of not more than two hundred and fifty thousand penalty units or to imprisonment for a term of not more than one year or to both; and ii. In the case of a corporation, to a fine of not more than five hundred thousand penalty units (5) If a corporation commits an offence pursuant to this Act, any officer or director of the corporation who directed, authorised, assented to, acquiesced in or participated in the commission of the offence is guilty of the offence and liable on conviction to the penalties for an 82

83 individual mentioned in this section whether or not the corporation has been prosecuted or convicted. Abetment and attempt punishable as offences 69. (1) A person who abets the commission of or who attempts to commit any offence under this Act shall be guilty of that offence and shall, on conviction, be liable to the punishment provided for that offence. (2) A person who does any act preparatory to or in furtherance of the commission of any offence under this Act shall be guilty of that offence and shall, on conviction, be liable to the punishment provided for the offence: (a) Provided that any term of imprisonment imposed shall not exceed one-half of the maximum term provided for the offence.. Offences by body corporate 70. (1) If a body corporate commits an offence under this Act, any person who at the time of the commission of the offence was a director or officer of the body corporate or was purporting to act in any such capacity or was in any manner or to any extent responsible for the management of any of the affairs of the body corporate or was assisting in such management (a) (b) may be charged severally or jointly in the same proceedings with the body corporate; and if the body corporate is found to have committed the offence, shall be deemed to have committed that offence unless, having regard to the nature of his 83

84 functions in that capacity and to all circumstances, he proves i. that the offence was committed without his knowledge, consent or connivance; and ii. that he had taken all reasonable precautions and exercised due diligence to prevent the commission of the offence. (2) If any person would be liable under this Act to any punishment or penalty for his act, omission, neglect or default, he shall be liable to the same punishment or penalty for every such act, omission, neglect or default of any employee or agent of his, or of the employee of the agent, if the act, omission, neglect or default was committed (a) (b) (c) by that person s employee in the course of his employment; by the agent when acting on behalf of that person; or by the employee of the agent in the course of his employment by the agent or otherwise on behalf of the agent acting on behalf of that person. Immunity 71. No action or proceeding lies or shall be commenced against the Bank of Zambia or any other person if that person is acting pursuant to the authority of this Act or the regulations, for anything in good faith done, caused or permitted or authorised to be done, attempted to be done or 84

85 permitted or omitted to be done by that person or by any of those persons pursuant to or in the exercise or supposed exercise of any power conferred by this Act or the regulations or in the carrying out or supposed carrying out of any order made pursuant to this Act or any duty imposed by this Act or the regulations. Power of Minister to make regulations 72. (1) The Minister, on the recommendation of the Bank of Zambia, may make regulations for or with respect to any matter that by this Act is required or permitted to be prescribed by regulation or that is necessary or convenient to be so prescribed for carrying out or giving effect to this Act. (2) The regulations may provide for fines not exceeding two hundred thousand penalty units, and for terms of imprisonment not exceeding five years, or both, for any contravention of the regulations. Power of the Bank of Zambia to prescribe 73. (1) Where a provision of this Act authorises the Bank of Zambia to prescribe anything, the power to prescribe shall be exercised by the publication of the matter by Gazette Notice. Guidelines 74. The Bank of Zambia may issue generally in respect of this Act or in respect of any particular provision of this Act, or generally in respect of the conduct of all or any of the credit reporting agencies, from time to time, codes of practice, guidelines, circulars or notes as may be necessary or expedient for giving full effect to the provisions of this Act, for carrying out or achieving the objects and purposes of this 85

86 Act or any provision thereof, or for the further, better and more convenient implementation of the provisions of this Act. Carrying on credit reporting business before the commencement of this Act 75. (1) Any person who has been carrying on a credit reporting business prior to the appointed date may continue to do so as if this Act has not been enacted for a period of three months from the appointed date or such other period as may be allowed by the Bank of Zambia in writing, referred to as grace period, and shall, within the grace period, make an application for licence as a credit reporting agency under section 11. (2) Where the applicant has been registered as a credit reporting agency by the Bank of Zambia, the credit reporting agency shall within six months from the expiry of the grace period fully comply with the provisions of this Act in respect of all credit information collected and further processed, whether before or after the appointed date, by the credit reporting agency for the purpose of carrying on the credit reporting business. (3) Where the applicant has not applied to be registered as a credit reporting agency or has been refused licence as a credit reporting agency on the expiry of the grace period, he or it shall immediately cease to collect and further process all credit information for the purpose of carrying on a credit reporting business, whether such credit information was collected or further processed before or after the appointed date. 86

87 (4) Any person referred to in subsection (1) who is aggrieved by the decision of the Bank of Zambia in refusing to approve his or its licensing as a credit reporting agency under section 12 may appeal to the Minister under Part VIII. (5) The grace period granted to a person under subsection (1) shall expire (a) in the case where the person fails to apply for licence as a credit reporting agency, on the date of expiry of the grace period; or (b) in the case where the person has applied for licence as a credit reporting agency (i) on the date his or its application for licence as a credit reporting agency is approved by the Bank of Zambia and a licence is issued; (ii) on the date of service of the notice issued under subsection 14(3) stating that his or its application for licence is refused by the Bank of Zambia; or (iii) on the determination of his appeal to the Minister under Part VIII. Exemption 76. (1) The Minister may, on the recommendation of the Bank of Zambia, if he considers it consistent with the purposes of this Act or in the interest of the public, by order published in the Gazette exempt a credit reporting agency, person or such class, category or description of persons, from all or any of the provisions of this Act for such duration 87

88 and subject to such terms and conditions as the Minister may specify. (2) The Minister may at any time, on the recommendation of the Bank of Zambia, by order published in the Gazette, revoke any order made under subsection (1). 88

89 SCHEDULE 1 (A) Account general data, being: identity of the credit provider; account number; capacity of the person (whether as borrower or as guarantor); account opened date; account closed date; type of the facility and currency denominated; approved credit limit or loan amount (as appropriate); repayment period or terms (if any); account status (active, closed, write-off, etc.); facility maturity date (if any); details of any scheme of arrangement, including: o the date of the arrangement, the number and frequency of instalments, the instalment amount, etc.; and in the case of a hire-purchase, leasing or charge account, including: o account expiry date, type of security, investigation date, instalment amount, etc; particulars for the identification of the motor vehicles, equipment, vessels or the asset secured by the charge, and notification of termination of the charge. (B) Account repayment data, being: o. amount last due; o. amount of repayment made during the last reporting period; o. remaining available credit or outstanding balance;. default data being: amount past due (if any) and number of days past due; date of settlement of amount past due (if any). (A) Payment Instrument Data Cheque number; value of dishonoured cheque; and other payment instrument data as prescribed by the Bank of Zambia. 89