Delay in setting up credit reporting tribunal a concern

A month after the Fair Credit Reporting Act was proclaimed, one lawyer is expressing concern that the tribunal to determine disputes has not yet been established.

Attorney-at-law Sherise King raised the matter on Tuesday, as she took part in a CreditInfo Barbados Ltd. Credit Reporting, Data Protection and Fraud Prevention information webinar.

The Fair Credit Reporting Act, which was passed in December 2021 and proclaimed last month, makes provision for the establishment of a tribunal for the purpose of determining disputes under the Act. Section 35 of the Act states that “any person aggrieved by a decision made under this Act may apply to the Tribunal for relief”.

“I will highlight that this is a concern that this isn’t necessarily set up as yet and I do believe it will be something that has to be also supported by legislation as well. So, that is a concern I do have in relation to the application of this Act, making reference to a tribunal but the tribunal isn’t necessarily set up yet,” King said.

“At least we recognise that there are other means, through the regulator, which exist as the supervisory body over the credit bureau and those within the credit reporting system. But there is a plan to establish a specific tribunal to address these financial weighted issues, and there is also still the provision for the course of the courts through civil liabilities as well,” she added.

The Central Bank is responsible for regulating the activities of any credit bureau in Barbados.

Providing an overview of the Fair Credit Reporting Act which she said was critical for the regulation of the credit bureau reporting system in Barbados, King said it aims to correct weaknesses while creating a “fairer system”.

She explained that an unregulated credit reporting system depended on negotiations and voluntary subscription and this could result in some people supplying only either negative or positive information, while a regulated system made full disclosure mandatory.

The legislation makes provision for the creation of a regulatory environment to promote the development of a fair credit reporting system; regulation of the use of such data; and the secure keeping of the private data of persons collected by a credit bureau.

“The legislation tries to create an environment by which those who most likely will have credit information would provide that information and that it is provided to the extent that a full credit portrait is painted, reflecting the true extent of a person’s credit history, thereby containing both negative and positive information,” King explained.

“We recognise in this age the value of information, but we also recognise there are many threats to information – there may be misinformation, inaccurate information or even how you access information; there can be threats or weaknesses in terms of that,” added the lawyer.

During the sensitisation forum, participants who included several bankers and other stakeholders had the opportunity to have some of their questions answered.

Earlier this month, the Caribbean Credit Bureau Ltd. (CCBL) raised concern that the Fair Credit Reporting Act was not necessary and would potentially do more harm than good.

However, the Central Bank of Barbados dismissed those concerns, saying the legislation was enacted to standardise credit reporting activities in Barbados, including providing greater transparency for consumers “who will now be more aware of what information credit bureau are collecting about them and with whom it is being shared”.

Under the Act, fines for noncompliance range from $50 000 to $200 000 and/or three to five years in prison. (MM)