YOUR Credit Rating May Take a Hit IF…

Submitted by Kammie Holder

What will be the unintended consequences? What is the real, real, real, real reason for getting involved in a Credit bureau rather than enacting legislation to control Credit Bureaus? Asking for my late friend Douglas Trotman. Sorry, but we both never trust governments. 

Extracted from Barbados Today December 15th,2021:

Senator Boyce: Credit reporting bill needs ‘longer runway’

While commending the fundamental purpose of the Fair Credit Reporting Bill 2021, Senator Kevin Boyce is of the view that some of the parties involved in administering the various aspects of the legislation need more time to be brought up to speed on the roles they will play.He told the Upper House on Monday evening, during debate on the Bill, that while the legislation will help people access finance, control their spending and, in some respects, provide a safety net, “all the parties involved need a longer runway so that they can come up to speed with what is expected of them”.

For example, in Sections 2 and 3 of Clause 16, it speaks to credit information providers. We would assume that this means these people will provide information to the credit bureau. From my interpretation, it seems as though this will include utility companies such as the Barbados Light and Power, the Barbados Water Authority, the Corporate Affairs and Intellectual Property Office and the Land Registry.

So, does this mean that if a person is in arrears to any one of these entities, they might have difficulty in accessing credit as they seek to improve their lives?” the Independent Senator questioned. In response, Deputy Leader of Government Business in the Senate, Senator Kay McConney, said: “We agree that in Clause 16 (3) there is the identification of designated entities as those allowed to provide information to the credit bureau. However, those listed under Section 16 (1) under financial institutions are those which are automatically captured, such as banks, insurance companies and credit unions and they will be included as soon as the Bill comes into effect. The utility companies and other such entities will come into the picture once they meet the requirements spelled out by the Central Bank of Barbados.” (DH)