The National Assembly of Panama approved in third debate a bill that regulates the service of information on the credit history of consumers.
The legislative plenary approved in third debate initiative 424, which modifies Law 24 of 2002 related to this registration system in the Panamanian Credit Association (APC), in order to create a data model or credit information that is fair and balanced between financial agents and credit clients, the Assembly informed.
If the reforms to the Banking Law that are being discussed in the Congress are approved, cooperatives will have to start reporting information in their loan portfolios.
Legal initiative number 5157which is pending final approval, proposes, among other changes, including in the Credit Registration Information System (SIRC by its initials in Spanish) information from financial institutions that are not yet sending reports.
The laws in Costa Rica have forced companies providing data on natural persons and legal entities to plan new strategies.
Elfinancierocr.com reports that "the actions have occurred in response to the fact that on March 5 the deadline was reached for the reorganization of their operations to comply with the provisions of the Law on Protection of the individual against the processing of their personal data (Act 8968) ".
Credit histories of businesses and individuals will be more thoroughly reviewed, as well as their actual repayment capacity.
"We want entities to analyze peoples's debts with everyone, because they may have a loan here and there, and in the end owe millions," said Javier Cascante, chief of the General Superintendence of Financial Entities (Sugef).
Equifax, a company that specializes in credit history and software development, has acquired the Costa Rican company Datum.
A press release from Equifax reads:
Datum collects, synthesizes and provides consumer credit data to banks, telecommunications companies and retail and insurance businesses throughout Costa Rica. The company’s headquarters are in central San Jose.
The partnership between the Executive Directorate of Revenue and the company Equifax, will mean that tax defaulters will be included in the credit bureau’s information.
This agreement will allow access by the financial system (private banks, finance companies, and cooperatives), to taxpayer’s debt information held with the Treasury.
"The measure of including tax debtors the credit bureau will help strengthen the credit analysis carried out by financial entities," said a source from the Honduran Association of Banking Institutions (AHIBA) ", according to an article in Elheraldo.hn
TransUnion Multinational introduced the first generic credit score to assess a credit user’s payment capacity.
"TransUnion Predictive Score” is a credit scoring model that predicts the likelihood that a customer will become delinquent (90 days or more) in their lines of credit, be it credit cards, personal, home or car loans over the next 12 months.
The Panamanian Credit Association will have the power to remove all credit references going back seven years or more.
The Martesfinanciero.com website indicated that "it applies to debts that have been cancelled or paid in full since 2002 and those that are active even if there has not been a payment for seven years or those that have never received payments and were opened seven years ago or more."