Credit Bureau Singapore and Dubai based Dun & Bradstreet South East Asia Middle East Ltd have dropped their accreditation to offer rating services using information from a national registry after both companies failed to meet state requirements on time, according to CIC President and Chief Executive Officer Jaime P. Garchitorena: “They’ve dropped their accreditation because we set deadlines… Their period of accreditation has lapsed,”
In March, the state-controlled CIC accredited six credit bureaus as special accessing entities (SAEs), namely: Credit Bureau Singapore; Dun & Bradstreet South Asia Middle East; local firm CIBI Information, Inc. (formerly Credit Information Bureau, Inc.); South Africa’s Compuscan; Italy’s CRIF S.p.A; and the United States’ TransUnion Information Solutions, Inc.
An SAE is a duly accredited private corporation engaged primarily in the business of providing credit reports, ratings and other similar credit information products and services.
Last July 25, CIC formally granted full accreditation to three SAEs namely: CIBI, Compuscan and CRIF, bringing the official accredited credit bureaus to four including TransUnion, which was the first to execute the subscription agreement with the CIC in May.
“One of the things that the CIC wanted to avoid is sometimes we have a situation where the government offers some sort of franchise or license to operate and what people do is they snatch up these licenses and franchises to operate but with no intention of operating and then when the industry grows large and there’s high value in the license, they sell it off, so it becomes like a shell company with a real license,” Mr. Garchitorena explained.
“So when [the CIC] issued the six licenses [to operate], there were target deadlines for the operation. And in both cases, although slightly different scenarios, Credit Bureau Singapore and Dun & Bradstreet Asia Middle East were not able to comply with certain aspects, so from that point forward, we’ve shut the accreditation process,” he added.
With both international firms losing their accreditation, Mr. Garchitorena noted that the CIC is open for applications of interested credit bureaus, even as the application and accreditation period has already ended. “Certainly we’re open to applications… they can come to us. We have had several inquiries,” he said.
Mr. Garchitorena declined to name the credit bureaus that have inquired about being accredited SAEs but said “these are credit unions, large cooperatives that have presented us that offer, international firms that deal with data.” In particular, one company’s “primary business is statistical illusions and they’re interested in developing products for the industry so it can take on many forms,” the official said.
Source: Business World