Credit office

credit bureau is a collection agency That gathers account information from various Creditors and Provides That information to a consumer reporting agency in the United States , a credit reference agency in the United Kingdom , a credit reporting body in Australia , a credit information company (CIC ) In India and Special Access Entity in the Philippines . It is not the same as a credit rating agency .

Description

A Consumer Reporting Agency is an organization providing information on individuals’ borrowing and bill-paying habits. [1] Credit information such as a person’s previous loan performance is a powerful tool to predict his future behavior. Such credit information institutions reduce the effect of asymmetric information between borrowers and lenders, and alleviate problems of adverse selection and moral hazard. For example, a credit grantor can be a lender in a bankruptcy. [2] This helps Lenders for Assessment credit worthiness, the Ability to pay back a loan , and can affect the interest rate and other terms of a loan. Interest rates are not the Sami for everyone, INSTEAD goal can be based is risk-based pricing , a form of price discrimination based on the different expected Risks of different Borrowers, as set out In Their credit rating . Consumers with poor credit repayment histories or short adjudicated debt obligations like tax links or bankruptcies will pay a higher annual interest rate than consumers who do not have these factors. Additionally, decision-makers in areas unrelated to consumer credit, including employment screening and underwriting of property and casualty insurance, increasingly depend on credit records, as studies have shown that such records have predictive value. [3] At the same time,

In the US, consumer data reporting agencies collect and aggregate personal information, financial data, and alternative data from a variety of sources. Data furnishers are typically creditors, lenders, utilities, debt collection agencies (credit bureaus) and the courts (ie public records ) that a consumer has had a relationship or experience with. Data credit reporting agencies. The data provided by the furnishers are then aggregated into the consumer reporting data repository or files. The resulting information from the consumer reporting agencies’ For the purposes of credit , credit or other. Given the large number of consumer borrowers, these credit scores tend to be mechanistic. To simplify the analytical process for Their customers, the different consumer reporting agencies can apply a mathematical algorithm to Provide a score the customer can use to more Rapidly for Assessment the likelihood That year individual will repay a Particular debt Given the frequency That Other Individuals in similar situations Have defaulted. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate. Credit scoring or for other purposes. Given the large number of consumer borrowers, these credit scores tend to be mechanistic. To simplify the analytical process for Their customers, the different consumer reporting agencies can apply a mathematical algorithm to Provide a score the customer can use to more Rapidly for Assessment the likelihood That year individual will repay a Particular debt Given the frequency That Other Individuals in similar situations Have defaulted. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate. Credit scoring or for other purposes. Given the large number of consumer borrowers, these credit scores tend to be mechanistic. To simplify the analytical process for Their customers, the different consumer reporting agencies can apply a mathematical algorithm to Provide a score the customer can use to more Rapidly for Assessment the likelihood That year individual will repay a Particular debt Given the frequency That Other Individuals in similar situations Have defaulted. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate. Given the large number of consumer borrowers, these credit scores tend to be mechanistic. To simplify the analytical process for Their customers, the different consumer reporting agencies can apply a mathematical algorithm to Provide a score the customer can use to more Rapidly for Assessment the likelihood That year individual will repay a Particular debt Given the frequency That Other Individuals in similar situations Have defaulted. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate. Given the large number of consumer borrowers, these credit scores tend to be mechanistic. To simplify the analytical process for Their customers, the different consumer reporting agencies can apply a mathematical algorithm to Provide a score the customer can use to more Rapidly for Assessment the likelihood That year individual will repay a Particular debt Given the frequency That Other Individuals in similar situations Have defaulted. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate. The different consumer reporting agencies can apply a mathematical algorithm to provide a more accurate estimate of the likelihood that a person will have a specific debt situation. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate. The different consumer reporting agencies can apply a mathematical algorithm to provide a more accurate estimate of the likelihood that a person will have a specific debt situation. Most consumer welfare advocates advise individuals to review their credit reports at least once a year to ensure they are accurate.

In addition to providing credit information, these services have become authoritative sources of identity information against which people can be verified using an identity verification service and knowledge-based authentication .

India

The Establishment of Credit Information Bureau (India) Limited ( CIBIL ), India’s First Credit Information Bureau, is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing non- Performing assets (NPAs)

CIBIL was promoted by State Bank of India (SBI), Housing Development Finance Corporation (HDFC), and Dun & Bradstreet Information Services India Private Limited (D & B) and TransUnion International Inc. to provide comprehensive credit information by collecting, collating and disseminating Credit information pertaining to both commercial and consumer borrowers, to a closed user group of Members.

With two other major credit bureau coming to India in 2010 (Equifax and Experian) the Credit Environment is changing the fast and the importance of credit rating is being felt across the length and breadth of the country

Around the same time, RBI also granted operating license to High Mark Credit Information Services – the only start-up in this oligopoly. High Mark launched India’s first micro finance office in early 2011 & today operates the world’s largest micro finance bureau besides offering traditional office services for the Retail lending industry.

Pakistan

ECIB ECIB is a software for monitoring credit carryforwards all across Pakistan. State Bank of Pakistan monitors the Software and all the Financial Institutions in Pakistan are required to have this software installed. A monthly process updates the reports at the State Bank end.

DFIs and Micro Finance Banks (MFBs), respectively, are mandatory for all Banks. No financial institution can access the CIB database without obtaining membership of CIB of State Bank of Pakistan.

All CIB on monthly basis. This information is submitted within a period of fortnight from the date of close of month.

History

The Electronic Credit Information Bureau (CIB) was established by the State Bank of Pakistan (SBP) in December, 1992. The scope and activities of CIB are governed under the provisions of the Banking Companies Ordinance (BCO) Vests powers with SBP to call for credit information in such manner as it may deem necessary and make such information available to any banking company.

United Kingdom

Credit Reference Agencies

In the United Kingdom, the three credit reference agencies are Experian , Equifax and Callcredit , which works closely with its US partner, TransUnion .

Most banks and other credit-granting organizations subscribe to one or more of these organizations to ensure the quality of their lending. This includes all of the following: credit card issuers, utility companies and store card issuers. Subscribing organizations are expected to provide data to maintain the common data pool.

Credit reference agencies are bound by the Data Protection Act 1998 , which requires that the data be identifiable. Individuals have a legal right to access data held on them. The Act SPECIFICALLY Gives Consumers the right to request to a copy of Their credit file by post for a fee of £ 2 [5] [6] [7] The UK credit reference agencies will aussi allow Consumers to Access Their credit report online Free for a trial period, after which a monthly or.

Consumer Credit Act (1974)

The activities of Credit Reference Agencies are-governed by the Consumer Credit Act 1974 .

United States

In the United States, there is no legal term for a credit bureau under the federal Fair Credit Reporting Act (FCRA). A consumer reporting agency is often abbreviated in the industry as CRA.

In the United States, key consumer reporting agency consumer protection and general rules or governing guidelines for Both the consumer reporting agencies and data furnishers are the federal Fair Credit Reporting Act (FCRA), Fair and Accurate Credit Transactions Act (FACTA), Fair Credit Billing Act (FCBA), and Regulation B.

Two government bodies share responsibility for the oversight of consumer reporting and agencies. The Federal Trade Commission (FTC) has oversight for consumer reporting agencies. The Office of the Controller of the Currency (OCC) charters, regulates, and supervises the furnish consumer reporting agencies.

Most US consumer credit information est file Managed and kept by the National oven traditional consumer reporting agencies: Experian (formerly TRW Information Systems & Services and the NCC Group), Equifax , TransUnion , and Innovis (qui Was you purchased from First Data Corporation in 1999 by CBC Companies ). These organizations are for-profit businesses and possess no government affiliation. Though they are competitors, they are members of a trade organization called the Consumer Data Industry Association (CDIA) to establish reporting standards and lobby on behalf of their industry issues in Washington. US CRAs are Metro and Metro2. The Metro2 standard is defined in the annual CDIA publication, the Credit Reporting Resource Guide . Consumers, Equifax , Experian and TransUnion . Consumers can go to annualcreditreport.com , the Internet site maintained by the three companies, to get their free report.

There are no translations available. There are no translations available. There are no translations available. Also, there are also non-traditional credit reporting agencies.

PRBC (Payment Reporting Builds Credit, Inc.) is a national alternative credit bureau . Incorporated in March 2002, PRBC allows customers to self-enroll and build a positive credit file by reporting their on-time payments (such as rent, utilities, cable, and phone) that are not automatically reported to the three traditional credit bureaus.

Cornera, Dun & Bradstreet, Experian Business, Equifax Small Business Financial Exchange (SBFE), PayNet, and Southeastern Association of Credit Management (SACM).

Tort liability for business defamation

In the case of Dun & Bradstreet, Inc. v. Greenmoss Builders, Inc. , 472 US 749 (1985) the US Supreme Court Held That a consumer reporting agency May be liable If It Was careless in reporting an impending or past bankruptcyfiling of a Business That Is not a public face .

Iran

Iran Credit Scoring (ICS) Company is the sole licensed national consumer reporting agency providing credit information services to its respective members in Iran. ICS is a private equity company established in 2006, by all Iranian banks (private and public banks) and other financial institutions such as leasing and insurance companies, operating in the Islamic Republic of Iran within the context of the current banking act and regulations issued by Iran Ministry of Economic Affairs and Finance and Central Bank of Iran.

The main objective of ICS is to help credit providers to improve their lending decisions quickly and objectively. To achieve this, a credit union or a credit union is required to provide credit to the credit union.

The ICS tends to aggregate credit related information among the participating members to provide the credit providers with a more complete risk profile of the customer. Participating members disclose credit information about the CRA to assess the credit worthiness of their existing and prospective customers, which enhances the credit providers’ risk assessment capabilities to determine whether or not the customer is likely to repay.

Philippines

In 1981 Ferdinand Marcos , Then President of the Republic of the Philippines, has Issued Letter of Instruction No. 1107 mandating the Central Bank of the Philippines to analyze the probability of Establishing and funding the operation of a credit bureau in the Philippines due to the Disturbing increase of failures on corporate borrowers.

In this paper, the Central Bank of the Philippines is organized as part of the Loans and Credit system. It was created to engage in collating, developing and analyzing credit information on individuals, institutions, business entities and other business concerns. It aims to develop and undertake the continuing exchange of credit among its members and subscribers and to provide an impartial source of credit information for debtors, creditors and the public. This will also cooperate and guide government agencies in their credit information requirements.

On April 14, 1982, Credit Information Bureau, Inc. was incorporated as a non-stock, non-profit corporation. (See: Presidential Decree No. 1941 [7])

In 1982, Credit Information Bureau, Inc. Was Established through the power of Presidential decree 1941 and created under the Central Bank of the Philippines, now Bangko Sentral ng Pilipinas (BSP) department of Loans and Credit, the Securities and Exchange Commission (SEC) and The Financial Executives Institute of the Philippines (FINEX); To initiate a credit information exchange system in the country.

In 1997, Credit Information Bureau, Inc. was incorporated and transformed into a private entity and was CIBI Information, Inc.

In 2008, Republic Act No. 9510 also known as Credit Information System Act of 2008 to the creation of Credit Information Corporation as the new government-owned and controlled credit registry in the country.

Saudi Arabia

The Saudi Credit Bureau (SIMAH) is the first and only licensed national credit bureau offering consumer and commercial credit information services to the respective members in the Kingdom of Saudi Arabia. It was established in 2002 under the supervision of Saudi Arabian Monetary Agency (SAMA).

The idea goes back into 1998 when national commercial banks and SAMA thought of establishing a Saudi credit bureau offering consumer and commercial information. Meetings were held for this purpose and officials were assigned to coordinate with the World Bank to consider Saudi national economy.

SIMAH was then established to operate within the context of the current banking act and regulations issued by SAMA.

Controversy

In the United States, a. [8] According to the US General Accounting Office (GAO), common causes of errors broadly fall into one of two categories: inclusion of incorrect information and exclusion of correct information. [9] Reasons for the inaccuracies include; Incorrect or incomplete data input by furnishers, or failing to provide data to the consumer reporting agency; And incorrect or incomplete data by the consumer reporting agency. [9] According to Avery, Calem, and Canner in Credit Report Accuracy and Access to Credit ,

The formula for calculating consumer credit scores by a consumer reporting agency is proprietary and considered a trade secret in the United States. [10]

Some consumer reporting agencies in the United States provide two credit scores – an ‘educational’ score to the consumer and a customary FICO-like score to the lender or business. Liz Weston writes that some consumer advocates refer to these other [educational] credit scores as “FAKO scores” (a play on acronym of FICO). [11] In these cases, the algorithms act as the law. The law says that if this does not happen, then they will be afforded different treatment and opportunities. What needs to be done though remains a secret. Therefore, people are called upon to abide by a secret law. At least two things need to be examined: First of all, the operation of a more general “chilling effect”; Secondly, the Social Effects of Discrimination, which takes on a new form of discrimination in the context of no discrimination. That person which is unknown. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed. First of all, it is a matter of the generality of the “chilling effect” which imposes a non-disclosed law; Secondly, the Social Effects of Discrimination, which takes on a new form of discrimination in the context of no discrimination. That person which is unknown. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed. First of all, it is a matter of the generality of the “chilling effect” which imposes a non-disclosed law; Secondly, the Social Effects of Discrimination, which takes on a new form of discrimination in the context of no discrimination. That person which is unknown. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed. Which means that a person who is not a citizen of the United States of America, or who is a citizen of the United States of America, is a citizen of the United States of America. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed. Which means that a person who is not a citizen of the United States of America, or who is a citizen of the United States of America, is a citizen of the United States of America. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed. A figure which has been assigned to all members of society. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed. A figure which has been assigned to all members of society. Accordingly, there can be no definition at present of what information or credit repositories collect or even what the use of that information is or what it reflects. These questions can only be answered if the algorithms were publicized and expert statisticians were allowed to examine them and improve on the intent of the model, which intent is also undisclosed.

Selon David Szwak, a partner in Bodenheimer, Jones & Szwak qui Specializes in insurance law and litigation contre consumer reporting agencies, some consumer reporting agencies in the United States Maintain a VIP database of special Consumers Such As members of Congress , judges, actors and celebrities. [12] The VIP database is specially administered by the office, which ensures the credit report of the consumer is accurate and not negatively handled. The database is available in the VIP database and can cause significant problems for the bureaus, including negative publicity and legislative action. [13] So far an economic model to describe this industry has not been attempted, While the fundamentals are the counterpart to the market, since other industries (finance, banking, insurance) sponsor consumer reporting agencies to process information to customers that pay CRAs to receive that information. The utility of the consumer is the only way to reduce the risk of mistakes.

Business Credit Reporting Agencies

Commercial credit reporting and scoring bureaus also exist, and can be used to evaluate the likelihood of a business paying creditors. Examples of commercial credit reports are the Paydex score from Dun & Bradstreet , the Experian Intelliscore , the CPR Score from Cortera , the GCS score from Global Credit Services, and the CIC Score and NACM National Credit Report from the National Association of Credit Management . TransUnion , Equifax , and Rapid Ratings are also examples of commercial credit reporting agencies. [14]

List of credit reporting agencies

Country Major CRAs
 argentina Nosis Credit Bureau , Veraz Equifax
 armenia Armenian Credit Reporting Agency (AIDA)
 australia CreditorWatch , Dun & Bradstreet , Experian , Tasmanian Collection Service , Veda ,
 Benign Creditinfo
 botswana Compuscan , Finedatta Africa Ltd
 brazil SPC Brasil , Boa Vista Serviços , Serasa Experian
 Canada Equifax Canada , TransUnion Canada
 Cape Verde Creditinfo
 chile Dicom Equifax , TransUnion , Siisa , Sinacofi
 colombia Cifin
 Costa Rica TransUnion
 denmark Experian
 Dominican Republic Data-Crédito , TransUnion
 ecuador Equifax , Acredita
 El Salvador TransUnion
 georgia Creditinfo
 germany Creditreform , Bürgel , SCHUFA , Boniversum
 Guatemala TransUnion
 guyana Creditinfo
 Honduras TransUnion
 Hong Kong TransUnion
 iceland Creditinfo
 india High Mark Credit Information Services , CIBIL , Experian & Equifax
 Ireland Creditinfo
 Iran Iran Credit Scoring
 Ivory Coast Creditinfo , Finedatta Africa Ltd
 jamaica Credit Information Services Ltd, Creditinfo
 kazakhstan Creditinfo
 Kenya Creditinfo , Finedatta Africa Ltd [16]
 latvia Creditinfo
 lithuania Creditinfo
 malaysia Credit Bureau Malaysia , CTOS Data Systems
 Mali Creditinfo
 malta Creditinfo
 mexico Equifax , TransUnion
 Morocco Creditinfo
 namibia Compuscan
 New Zealand Veda Advantage , Dun & Bradstreet , Centrix
 Netherlands Experian
 Nicaragua TransUnion
 Niger Creditinfo , Finedatta Africa Ltd
 Nigeria XDS Credit Bureau , Finedatta Africa Ltd
 norway Experian
 Pakistan ECIB
 peru Equifax , Xchange Peru
 philippines CIBI Information, Inc.
 poland Polish Credit Bureau “BIK”
 romania Creditinfo
 Rwanda Compuscan , Finedatta Africa Ltd
 Saudi Arabia SIMAH Saudi Credit Bureau
 Senegal Creditinfo , Finedatta Africa Ltd
 singapore DP Information Group , Credit Bureau (Singapore)
 South Africa Compuscan , Experian , TransUnion, Finedatta Africa Ltd
 South Korea National Information & Credit Evaluation
 spain RAI (companies only); ASNEF- Equifax and BADEXCUG- Experian (consumers)
switzerland Zentralstelle für Kreditinformation
 tanzania Creditinfo , Dun & Bradstreet , Finedatta Africa Ltd
 Togo Creditinfo, Finedatta Africa Ltd
 uganda Compuscan, Finedatta Africa Ltd
 Ukraine Creditinfo
 United Arab Emirates Al Etihad Credit Bureau
 United Kingdom Experian , Equifax , Callcredit
 United States Experian , FICO , Equifax , TransUnion , Innovis , PRBC

See also

  • Credit history
  • Credit risk
  • Credit circle

References

  1. Jump up^ O’Sullivan, Arthur ; Sheffrin, Steven M. (2003). Economics: Principles in Action . Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 512. ISBN  0-13-063085-3 .
  2. Jump up^ Edited by Margaret Miller. (2003). Credit Reporting Systems and the International Economy. Cambridge, Massachusetts: MIT Press
  3. ^ Jump up to:a b Avery, Robert B .; Calem, Paul S .; Canner, Glenn B. (2004). Credit Report Accuracy and Access to Credit (PDF) . Federal Reserve Bulletin, Summer 2004. Washington, DC 20551: US Federal Reserve. p. 26.
  4. Jump up^ 6 Edited by Margaret Miller. (2003). Credit Reporting Systems and the International Economy. Cambridge, Massachusetts: MIT Press
  5. Jump up^ Experian Statutory Credit Report
  6. Jump up^ Equifax Statutory Credit Report
  7. Jump up^ Callcredit Statutory Credit Report
  8. Jump up^ David Baldock (Creator), James Scurlock (Directory) (March 10, 2006). Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders(Television Documentary). Mainstage Productions. Event occurs at 43:38.
  9. ^ Jump up to:a b Hillman, Richard J. (July 31, 2003), “Statement for the Record Before the Committee on Banking, Housing, and Urban Affairs, US Senate,” Limited Information Exists We Extent of Credit Report Errors and Their Implications for Consumers (PDF) , US General Accounting Office, p. 22, GAO-03-1036T
  10. Jump up^ AGO Blog Moderator (December 18, 2007). “New credit score formula on horizon” . Washington State Office of the Attorney General . Retrieved January 11, 2012 .
  11. Jump up^ Weston, Liz. “Credit bureau move creates ‘secret’ scores” . MSN . Retrieved January 11, 2012 .
  12. Jump up^ David Baldock (Creator), James Scurlock (Directory) (March 10, 2006). Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders(Television Documentary). Mainstage Productions. Event occurs at 1:22:01.
  13. Jump up^ David Baldock (Creator), James Scurlock (Directory) (March 10, 2006). Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders(Television Documentary). Mainstage Productions. Event occurs at 1:22:30.
  14. Jump up^ Garrett, Joseph C. (20 January 2012). “Why Is It Important To Know My Credit Score?” . Know My Credit Score . Retrieved 21 February 2012 .
  15. Jump up^ http://dab.gov.af/en/page/about-the-bank/departments/cib
  16. Jump up^ “Finedatta Africa Ltd – Our Coverage Area” . Www.finedatta.com . Retrieved 2016-10-05 .

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