Houses Approves Regulations to Credit Reporting Act


The House of Representatives yesterday (March 9) approved the regulations to the recently passed Credit Reporting Act, to provide for the licensing of credit reporting agencies as well as the required fees.
The regulations set out the application requirements to operate as a credit bureau, which include a memorandum of association, certificate of incorporation, and audited statements, while there is a fee of $25,000 to apply for a licence.
“The regulations also set out the fee required for renewing license.a minimum of $50,000 plus $100 for every 1,000 credit inquiries, up to a maximum of $5 million,” said Leader of Government Business in the House, Hon. Andrew Holness.
He added that the capital requirement of any agency wanting to become a recognised credit bureau is US$100,000 at the existing exchange rate at the time of application. Under the rules, licensees are required to maintain insurance, at a limit to be set by the authority that is prescribed in the Credit Reporting Act. It further sets out various measures that should be used in the application process.
The Credit Reporting Act allows for the sharing of credit information between specified financial institutions and enables creditors to make better lending decisions.
It also provides for the licensing and supervision of a credit bureau, and other connected matters. It will also better enable creditors to manage risk and improve pricing of loans, once information is accurate and complete.

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