NCB partners with Credit Bureaus FREQUENTLY ASKED QUESTIONS (FAQ) Understanding the role of the credit bureaus 1. What is a credit bureau? A credit bureau is an agency that collects credit information from lenders and other relevant sources on a borrower s credit history, and provides that information to prospective lenders. Information acquired from a credit bureau allows a lender to better assess the credit worthiness of a borrower. 2. Who regulates/licenses credit bureaus in Jamaica? Under the Credit Reporting Act 2010 which came into effect on October 1, 2010, The Bank of Jamaica is the designated supervising authority under the Act and is responsible for reviewing and recommending on applications for license to the Minister of Finance and for maintaining general supervisory oversight of the credit reporting regime in Jamaica. 3. With how many credit bureaus has NCB signed NCB has signed with two credit bureaus: - Credit Info Jamaica Limited The Towers (9 th Floor), 25 Dominica Drive, Kingston 5, Jamaica Tel: 618-3735 Fax: 618-3736 www.creditinfojamaica.com - CRIF NM Credit Assure Limited Unit 64, Winchester Business Centre, 15 Hope Road, Kingston 10, Jamaica Tel: 906-8680 Fax: 926-2387 www.crifnm.com 4. Where do credit bureaus get information? Credit Bureaus collate information from various sources in order to evaluate the credit worthiness of a consumer. The following list of individuals/institutions (Credit Information Providers - CIPs), may provide information to credit bureaus: Commercial Banks Licensees under the Financial Institutions Act (e.g. Merchant Banks) Building Societies Societies registered under the Cooperative Societies Act e.g. credit unions The Development Bank of Jamaica Limited Persons/entities who publish information on suits and judgments for debt claims Other credit bureaus Securities Dealers (companies that offer securities such as Bonds etc.) Insurance Companies National Housing Trust The Students Loan Bureau Businesses that sell goods under hire purchase, credit sale, or conditional sale agreements as defined by the Hire Purchase Act Any other entity designated by the Minister to be a credit information provider under the Credit Reporting Act Page 1 of 5
5. What types of information will be collected by the credit bureaus? The following types of information may be collected by credit bureaus: The nature of loans, advances or other credit facilities and the amount accessed. The type of security used by a customer to secure credit facilities (including lease financing and/or hire purchase) History of financial transactions The nature of any guarantee or other non-fund based facility accessed by a consumer Information on suits and judgements for debt claims 6. How does information from a credit bureau benefit the average consumer? Information from a credit bureau allows a lender to more accurately assess the credit worthiness of a borrower. This enables lenders to better assess the risk of each credit and price the loan accordingly. Therefore, potential borrowers with good credit histories may be eligible for better lending rates. NCB s relationship with credit bureaus 7. What is required of NCB? As a credit information provider, NCB submits information on its credit customers to the credit bureaus and as such has an obligation to act in accordance with the statutes/regulations which govern the credit reporting initiative i.e. (Credit Reporting Act 2010). 8. How often will NCB send information to the credit bureaus? Information will be submitted to the credit bureaus on a monthly basis, at the start of each month. Additional transmissions may however be required from time to time. The importance of the Consent Form 9. Where can the customers access the forms? Customers may access the Consent Form via the website: www.jncb.com or by visiting any of our branches. 10. Are customers required to give written consent to NCB to allow NCB to access their credit information from a credit bureau? Yes. The Consent Form serves as the authorization/approval from a customer to access their credit information from a credit bureau and is a requirement for compliance with the Credit Reporting Act 2010. 11. Is a Consent Form required for every credit application? Yes, a Consent Form is required for all parties involved in the credit application process (including guarantors) for whom NCB does not hold a valid Consent Form unless mentioned below: Page 2 of 5
Guarantors that offer supporting collateral/security are not required to sign a Consent Form. If, a supplementary credit card application is being submitted, a Consent Form is not required for the supplementary applicant, as all obligations for settlement of the card balance are with the primary card holder. Government agencies are exempted, as NCB will not be accessing credit reports for these entities. Otherwise as notified from time to time. 12. Is a Consent Form required for a credit card limit increase application? Yes. A request for limit increase is an application for credit and therefore requires a Consent Form, so that we can access the customer s credit report. 13. Are persons, external to NCB, authorized to witness a Consent Form? Yes. The following persons can serve as witnesses: Justice of the Peace (JP): must bear the signature and seal/stamp Attorney-At-Law: must bear signature, stamp though preferred, is not mandatory 14. What if the customer refuses to sign the Consent Form? Information received from credit bureaus will be incorporated in our assessment for credit applications. If the Consent Form is required but not signed, NCB will not proceed with establishing a new credit relationship with the customer. 15. Can a customer withdraw their consent? Yes. This withdrawal MUST be submitted in writing, but will only be effective upon the closure of the current credit facility. Where an application for a new credit facility is being submitted, a new Consent Form is required. If not, NCB will not be able to proceed with establishing a new credit relationship. Accessibility and use of a Credit Report 16. Who can request a credit report? The following persons can request a report from a credit bureau: The consumer to whom the information pertains A Credit Information Provider (CIP) (examples may be seen in Question 4 ) The supervising authority (i.e. Bank of Jamaica) Additionally, a credit bureau may also be required to provide information pursuant to a Court Order or as provided for under the Credit Reporting Act 2010 or any other law. Page 3 of 5
17. Who at NCB will be allowed to access a customer s credit report? ONLY authorized persons involved in the credit decisioning process will be able to access a credit report. This includes the Underwriting team (Retail Banking, Corporate Banking and Group Human Resource Division) and Group Risk Management Division approvers. 18. When is the credit report needed? The credit report is required to facilitate completion of the credit assessment process and will be required for every applicable credit application, UNLESS at the time of application, a credit report, was downloaded earlier in the same calendar month. (NB. Customer credit information for new customers and updated information for pre-existing customers are submitted to the credit bureaus at the start of each calendar month.) 19. Does NCB require a credit report from both credit bureaus? Yes. The Credit Bureau initiative is a new concept to Jamaica. NCB wants to ensure that we are able to conduct a complete assessment of a customer s credit worthiness, to improve the credit decision process. We are however aware that some credit information providers have subscribed to one or both credit bureaus and so to ensure we have access to a greater level of information, we currently require a report from each bureau, with which we have signed. 20. Am I required to pay a fee for NCB to access my credit report? Yes. 21. Why am I required to pay a fee for NCB to access my credit report? The credit bureaus charge a fee for the service. NCB requires the customer to pay that charge. The fees are as follows: Type of Customer Personal Business Cost $1,755.66 including GCT $1,872.16 including GCT 22. How will the fee be collected/charged? For loan applications, the fee will be collected at the point of application. For credit card applications, the fee is only applied to successful applications at the time the account is opened. In instances where a credit card application was declined, NCB will bear that cost and so the customer will not be required to pay a fee for the credit report. Likewise, for pre-approved loans and credit cards, NCB bears the cost for the credit report. Page 4 of 5
23. Am I required to pay two separate fees if I submit a consumer loan application and a credit card application at the same time? No. The fee will only be collected once at the point of application for the consumer loan. 24. Will NCB accept a copy of a credit report submitted by a customer? No. NCB will only accept credit reports received directly from a credit bureau, for use in the assessment process. Handling Complaints about Credit Reports 25. What should a customer do if he has a complaint regarding an error in his Credit Report? If there is a concern relating to the accuracy or completeness of a credit report, a complaint may be submitted in person or in writing to the respective credit bureau. In addition, if the customer is dissatisfied with the outcome of the investigation of his/her complaint, a formal complaint may be submitted in writing to the supervising authority i.e. Bank of Jamaica. 26. How is corrected information passed on by a credit bureau to creditors? Whenever credit information has been amended, a copy of the amended report is sent by the credit bureau to every person to whom the credit bureau disclosed the unreliable information. The consumer and BOJ are also notified when the necessary changes have been made. Page 5 of 5