The European Commission has acknowledged the work of the International Committee on Credit Reporting (ICCR) in a Best Practices document published on July 16th regarding how banks, non-banks, credit reference agencies and other financial services providers should provide relief for consumers and businesses amidst and following the COVID-19 pandemic.
The Best Practices document is the outcome of a dialogue between the European Commission and representatives of the European financial sector and the business and consumer sectors. The dialogue took place during two workshops organised by the European Commission at which over 25 organisations participated including our sister trade association, ACCIS.
In the document, the Commission stated that “Banks, non-bank lenders and credit reference agencies are encouraged to process the information related to the granting of the moratoria in a way that it does not negatively impact credit files nor has an automatic impact on the credit rating (or equivalent measure of risk) of consumers”. It also explicitly endorsed the recommendations put forward in the ICCR’s recent COVID-19 guidance – Treatment of Credit Data in Credit Information Systems in the context of the COVID-19.
BIIA, as a founding member of the ICCR, played an active role in developing the guidance along with the other members from the trade associations representing the credit reporting industry (ACCIS, Alacred, CDIA and FEBIS) and representatives from Central Banks and other regulatory bodies.
Neil Munroe, Deputy Chair of the ICCR and Deputy Managing Director of BIIA commented ‘as the international standard setting body for credit reporting, one of our key objectives is identifying key developments that could have an impact on the effective operation of credit reporting and to provide guidance on how all stakeholders involved should respond to these developments. We welcome the acknowledgement by the European Commission of the ICCR guidance which is a strong endorsement of the knowledge and work of the Committee.’
BIIA Executive Committee
Business Information Industry Association