Credit agencies sharing info

National, Normal
Source:

The Nationl, Monday 3rd September, 2012

By EMMANUEL MAIPE
CREDIT information sharing has closed the information gap between borrowers and lenders to enable informed credit lending decisions, the Credit and Data Bureau (CBD) says.
Bureau managing director Bruce Mackinlay said in Port Moresby last Thursday that because of the lack of information sharing with borrowers in the past, there had been an information gap between the borrower and the lender on customer credit details.
He said that made it difficult to know if borrowers had other loans and would have difficulty repaying a new loan.
“That information gap is now closing with credit information sharing that has taken place over the years between the bureau and its members,” Mackinlay said.
“The lender now has more information about the borrower, which can be used to make informed decisions on whether to lend.”
He said the bureau shared information with its members, mainly banks and financial institutions, so the lender could be sure the borrower had the financial capacity to repay it.
“If a credit report shows that the borrower has lots of other loans, the lender may decide not to give the loan as the borrower will not have the financial capacity to repay the loan,” Mackinlay said.    
The information on the borrower is accessed by the banks and the financial institutions on the bureau’s database but that information is confidential and can only be accessed if the borrower grants permission.
“The borrower’s information, name, identification, address and contact numbers, occupation and employer details plus previous inquiries, public notices, are obtained through a loan application form whenever the borrower applies for a loan at a bank or financial institution,” he said.
“When the borrower signs the form, he or she is giving permission to the banks and the financial institutions to access details and share information on them on the bureau’s database.”