Promotes Info-Based Lending And Responsible Borrowing

Credit Information Corporation (CIC), the state-run public credit registry and central repository of Filipinos’ credit information, supports the celebration of this year’s Credit Consciousness Week from April 24 to 30, 2021 pursuant to Presidential Proclamation No. 568, series of 1995.

The annual observance, spearheaded by the Bangko Sentral ng Pilipinas (BSP), runs the theme, “Sapat na puhunan at responsableng pag-utang, sandigan sa pagbangon ng bayan,” which emphasizes how access to adequate funds and responsible credit can positively impact the Philippine economy which has been badly hit by the COVID-19 pandemic.

Relative to the said theme, Senior Vice President for Business Development and Communications Atty. Aileen L. Amor-Bautista shared how information-based lending can help financial institutions make better credit decisions through accessing the CIC database.

“They can prevent lending to high-risk individuals or firms and incentivize those who have been diligent with their timely repayments through a reputational collateral: the CIC Credit Report,”  Atty. Amor-Bautista said.

The SVP also added how this reputational collateral is crucial in contactless, cost-efficient assessment of borrowers: “At P10 per credit report inquiry fee until June 2021, accessing entities of the CIC—which are now at 111 financial institutions—can access the CIC database online, 24/7, without the need for credit investigators or face-to-face transactions, therefore minimizing the cost of screening for credit applications.”

Borrowers’ rights

The credit registry likewise featured the rights of borrowers during the celebration which includes the right to ready and immediate access to credit information, and right to dispute erroneous, incomplete, or misleading information on their credit reports pursuant to the Credit Information System Act (CISA).

The CIC Credit Report with credit score, as reported earlier, may be accessed and obtained online through CIBI Information, Inc., one of the accredited credit bureaus or Special Accessing Entities (SAE) of the agency.

Once borrowers have a copy of their credit report and found erroneous or outdated information, they may file a dispute online through the CIC’s Online Dispute Resolution Process (ODRP).The SVP further encouraged Filipinos with credit exposure to monitor their credit history, especially these days when fraudulent activities are rampant: “Obtaining a copy of their credit report online can help them to immediately report any malicious credit activities found in their credit history and prevent such event from negatively affecting their credit standing.”

Harassment by online lending, financing apps

The central credit registry also expressed its support on the issuances released by various government agencies against unlawful debt collection practices of online lending firms. “The CIC has been receiving numerous complaints against online financial institutions using indecent language to intimidate their borrowers to settle their debts. The agency’s name is also being used in these incidents of harassment. The CIC wishes to clarify that it doesn’t blacklist anyone from its database nor report to any financial institution that a person should be prohibited or denied from accessing any credit facility,” Atty. Amor-Bautista said.

Just recently, the Department of Justice–Office of Cybercrime (DoJ-OOC) released a public advisory stating that in accordance to Republic Act (R.A.) No. 10175 or the Cybercrime Prevention Act of 2012, R.A. No. 10173 also known as the Data Privacy Act of 2012, the Revised Penal Code, and Memorandum Circular 2018, series of 2019 issued by the Securities and Exchange Commission (SEC), online lending companies are prohibited from accessing their borrower’s phone contacts, posting their personal information online, and harassing them with profane language, and threats of death and physical injuries.

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The Credit Information Corporation (CIC), a government-owned and controlled corporation, was created by Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA). The primary mandate of CIC is to establish a comprehensive and centralized credit information system for the collection and dissemination of fair and accurate information relevant to, or arising from, credit and credit-related activities of all entities participating in the ecosystem.

Source: Credit Information Corporation (CIC)