Thursday, July 18, 2024

Globe says it will give customer data to gov?t-owned credit agency

Globe Telecom said it is ready to provide Credit Information Corp. (CIC), a state-run agency, with credit information of its customers starting February this year.

CIC president and CEO Jaime Garchitorena
CIC president and CEO Jaime Garchitorena

?As mandated by law, Globe is ready to comply with the directive to provide basic credit data. We are confident that establishment of a credit information system in the country will further enhance development of the local financial sector that, in turn, will further boost economic growth,? Globe general counsel Froilan Castelo said.

Republic Act 9510, also known as Credit Information System Act, which was enacted into law in 2008, provides for the creation of the CIC.

CIC is tasked primarily to collect and disseminate relevant credit information that will directly address the need for credit information concerning the credit standing and track record of borrowers.

The agency is composed of 14 board members from both the private and public sectors. Its president and CEO is former tech executive Jaime Garchitorena.

The law requires banks, quasi-banks, their subsidiaries and affiliates, life insurance companies, credit card companies and other entities that provide credit facilities to submit basic credit data and updates on a regular basis to the CIC, which is mandated to update the basic credit data of a borrower on a monthly basis.

Basic credit data includes any negative and positive credit information that tends to update the credit status of borrowers.

The establishment of a comprehensive credit information database is expected to enhance financial inclusion in the country, the Ayala-owned telco said.

For instance, Globe said it customers with no credit record from a bank or financial institution, but with a Globe account, can now have credit information, which could be one of the possible bases for loan approval.

Recently, the scope of CIC?s coverage was expanded to include telecommunication companies as provided for under CIC Circular 2016-01.

?The CIC has determined that telecommunications companies are within the purview of the law whose data is relevant for determination of creditworthiness and in making credit decisions,? the circular stated.

With the establishment of a comprehensive credit information database, financing companies may use the basic credit data from the pool of credit information gathered and collected by CIC from the submitting entities to establish creditworthiness of an individual or an organization.

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