What is a Credit Information Bureau?
A Credit Information Bureau maintains a repository of factual information on credit application and repayment records of consumers. A Credit Information Bureau provides this information to its members (which lend to consumers) under authorized conditions, to help them to determine whether or not a party applying for credit is likely to repay. In doing this the bureau helps lenders to make better lending decisions quickly and objectively. Credit Information Bureau is a common feature in developed countries as well as in emerging market economics and the concept is not unique to Sri Lanka.
- Who are the members of the CRIB?
- Give the list of members.
How does the CRIB benefit me?
The CRIB data is used to help the credit providers to make faster and more objective lending decisions. It also contribute to a more competitive credit market place among the credit providers. With the Bureau in place, responsible customers with a good credit repayment history can expect a faster and more Competitive service from the credit provider.
How does the CRIB work?
For credit providers to get more information of the credit applicant, they need to gain access to the applicants complete credit record that may be spread over different institutions. This information can be used to supplement other information to help banks, finance companies and leasing companies to make their decisions to grant credit. CRIB stores and provides these credit records in the form of credit reports to lending institutions who must first be members of the bureau.
Where does CRIB get this information?
Q1 -Where does CRIB get its information?
A -The CRIB get its information from members direct and supplements it with publicly available information,such as bankruptcy information.
Q2 -Is it legal for the banks to share information of its consumers with the CRIB?
A -Yes. The CRIB Act provides the legal framework on the use of customer information, Banks are only permitted to disclose specific credit related information. Banks do not disclose deposit information and this includes any funds, safe deposit boxes or safe custody arrangements of a customer under management by a bank.
Q3 -Do all banks contribute data to the CRIB?
A -Yes. Not only banks but all Registered Finance Companies and Specialized Leasing Companies contribute credit performances data under legally permitted conditions
Lending Decisions of CRIB Members
Q1 -Does the consumer credit report indicate whether credit should or should not be given?
A -The credit report only shows the factual credit information available and does not provide an opinion,
indication or comment whether credit should or should not be granted.
Q2 -Who makes the decision to grant credit?
A -The banks, registered finance companies and specialized leaving companies through whom you have
applied for credit, make the credit decisions. CRIB does not grant nor deny credit.
Q3 -Will CRIB know why I have been denied credit?
A -No, The decision to grant or deny credit is made by the credit providers.
Q4 -Does the CRIB have any "blacklists?
A -No CRIB only provides specific factual credit related information about consumers who have credit or loan facilities,
Q5 -If my credit application has been rejected, will this fact appear in my credit record?
A -No, Members do not provide such information to the CRIB. As such it will not be in an individual credit report,
Q6 -If r have been denied credit by a bank, RFC or SLC will others also reject me.
A -Not necessarily. Different credit providers may use information differently,
or take into account other factors when they assess your application. Although one credit providing institution may deny you credit, another may take a different view and accept your application.
Q7 -When is an account classified as "default"?
A -This is a commercial decision by the credit provider, and may depend on variety of factors.
In normal cases the account will be 90 days + overdue, before it is classified as overdue. CRIB does not determine when an account as classified as default and merely reflects this information after the bank has classified it as such.
Q8 -How do I avoid having negative information on me from being sent to the CRIB?
A -The best preventive measure is to exercise good money management and make repayment on time.