New system for credit reporting and checking
A new credit reporting Bill that provides for the establishment and operation of a central credit register was published yesterday by Minister for Finance Michael Noonan.
The register was one of the financial sector reforms identified by the European Commission, European Central Bank and International Monetary Fund troika at the start of the bailout programme.
The new credit registry will provide a comprehensive view of individuals’ borrowings across various lenders
“The Credit Reporting Bill 2012 is an important piece of legislation, providing for the establishment of a mandatory credit reporting and credit checking system,” Mr Noonan said.
The system will be regulated and operated by the Central Bank of Ireland and will ensure that lenders have access to the most accurate and up-to-date information regarding a borrower’s total exposure.
“This provision will benefit both borrower and lender, and will ensure that lenders are in a position to make informed lending decisions,” he said.
In addition, consumers will be entitled to one free copy of their own record every year.
Under the Bill, lenders will be required to make mandatory credit checks with the register for all credit applications above a threshold of €2,000.
The legislation also proposes to extend the role of the Data Protection Commissioner to deal with complaints from micro enterprises and SMEs in respect of their data held on the credit register.