Your credit report comprises a history of your credit and repayment patterns. To prepare this report, a credit bureau collects this information from any financial institution from which you acquired a loan, or any entity that sells items on credit or hire purchase. Your credit score estimates your ability to meet your financial obligations to an entity that has offered you credit and/or hire-purchase items.
Credit reporting has been happening in Barbados for many years. What the new Fair Credit Reporting Act will do is regulate and expand this activity.
Your information will be collected from financial institutions that offer credit, such as commercial banks, finance and trust companies, and credit unions, as well as insurance companies.
It can also be collected from utility companies, companies that offer hire purchase, and other entities such as the Student Revolving Loan Scheme.
A more detailed list can be found in the Act.
A credit bureau can collect a wide range of information about you:
In some instances, you may be asked to give your consent. However, in other instances, your consent is included in the terms of the credit agreement you are entering into with the credit information provider (e.g. financial institution, utility company, business).
The company can also notify you that your information will be shared by posting a physical notice on their premises or posting a notice on their website. In such cases, doing business with the entity in question after notification is deemed to be consent.
Yes. However, a business or other entity may determine that your consent for them to access your information is a condition for them offering you credit.
Anyone using the credit bureau’s services can receive your credit report, credit score, or other credit information about you.
This includes banks, credit unions, and other financial institutions, as well as companies that offer hire purchase, potential landlords, and potential employers, if the position entails significant financial responsibilities.
No, you will not be notified when someone accesses your information. Remember, however, that entities cannot access your information without your consent.
What happens if I do not give consent for my information to be collected or shared?
If you do not consent for your credit information to be collected by or shared with an entity, that entity has the right not to enter into an agreement with you.
Yes. Each year, you are entitled to a free copy of your credit report upon request.
If the credit bureau’s information on you is incorrect, you can send a letter requesting that the error be corrected. The credit bureau must, within seven days of receiving your letter:
The credit bureau and all credit information providers must have appropriate systems, policies, and procedures in place to protect your information from accidental loss, destruction, or damage. Any malicious breaches of your data privacy carry a penalty of BDS$50,000.
A business could decline to give you a loan if they consider you to be a bad credit risk.
Companies and other entities can determine whom they or don't do business with, however it is only natural to prefer to do business with customers who have a good track record of meeting their obligations, as these customers are considered lower risk.
The best way to build up your credit score is to seek to meet your credit obligations as agreed and speak promptly to your credit provider if you face challenges.
The Fair Credit Reporting Act does not identify the specific factors that contribute to your credit score. As such, different credit bureaus will determine what activities they factor in determining what is deemed to be bad credit and how heavily they weight them.
Different credit bureaus will use different metrics and apply different weights to assess your credit worthiness.
Since the moratoria during the COVID-19 pandemic were offered by financial institutions, it is doubtful that a person who accepted the moratoria will have any related non-payments reflected in their credit score.
According to the Fair Credit Reporting Act, credit bureaus can retain information about your credit activity for seven years after you have paid off the loan or other debt.
Credit reporting is an ongoing activity, so each time that you enter into a new credit arrangement or repay an existing loan, it will be reflected in your credit report.
While the Fair Credit Reporting Act was only recently passed, there have been credit bureaus in operation in Barbados for several years. It is therefore likely that these and other bureaus will use the credit information that is currently available on you and build upon that going forward.
Yes. Companies and other entities can determine with whom they want to do business, and may choose not to do so with someone whom they consider to be a credit risk.
This is unlikely as the terms and conditions of existing agreements would already be set. Your credit report could however impact any potential future agreements you may enter into with the same or another business.