Atty. WBC - Credit Information System Act

CREDIT INFORMATION SYSTEM ACT
RA 9510 or the Credit Information System Act is a law that addresses the
need for a comprehensive, centralized, and reliable credit information system for
the collection and distribution of fair and accurate information relevant to, or
arising from, credit and credit-related activities (credit information) of all entities
participating in the financial system.
 The operations and services of a credit information system can be expected

to (1) improve the over-all availability of credit, (2) provide mechanisms to
make credit cost-effective, and (3) reduce reliance on collateral to secure
credit facilities.
Credit Information Corporation (CIC) – a GOCC which is tasked to enforce the

law and serves as a provider of independent, reliable, and accurate credit
information in the Philippines.
What is a Basic Credit Data?
It is the positive or negative credit information provided by a borrower to a

submitting entity in connection with the application for and availment of a credit
facility and any information on the borrower’s creditworthiness in the possession of
the submitting entity and other factual and objective information related or
relevant thereto in the submitting entity’s data files or that of other sources of
information.
Note:
 In the absence of a written waiver duly accomplished by the
borrower, basic credit data exclude confidential information
on bank deposits and/or clients funds.
Positive Credit Information = Information/data concerning the credit

performance of a borrower, such as, but not
limited to, information on timely repayments or
non-delinquencies.
Negative Credit Information = Information/data concerning the poor credit

performance of a borrower, e.g. defaults on
loan payments, etc.
Credit Report – Summary of consolidated and evaluated information on

creditworthiness, credit standing, credit capacity, character and
general reputation of a borrower. It contains the borrower’s
basic information and includes loan contracts with lending
institutions, utility subscriptions, and other obligations.
Who are these Submitting Entities and What are the Data to be
Submitted?
Submitting entities are those required under this law to submit information
or data about the borrower, including, but not limited to, banks, quasi-banks, trust
entities, investment houses, financing companies, cooperatives, micro-financing
companies, credit card companies, insurance companies, and government lending
institutions.
They are required to submit to CIC on quarterly basis current, objective,

factual, and basic credit data, both positive and negative, on all their data
subjects.
Notes:
 The CIC may also access credit and other relevant
information from the following which are under their
custody: Government offices such as NSO & HUDCC;
Judicial and administrative tribunals like NLRC;
Prosecutorial agencies and other related agencies; and
Government pension funds administrators like SSS &
GSIS.
 Any negative information shall stay in the CIC’s database

for not more than 3 years from and after the date the
negative information shall have been rectified.
 Negative information shall be corrected and updated

within 15 days from notice of payment, liquidation, or
settlement of debt.
Confidentiality of Credit Information/Credit Report:
Credit information should be treated with utmost confidentiality and shall

be used only for the declared purpose of establishing the creditworthiness
of the borrower.
The CIC shall be authorized to release and disclosed consolidated basic

credit data ONLY to the following:
1. Accessing Entities
2. Special Accessing Entities
3. Outsource Entities; and
4. Data Subjects
Note: Credit information shall not be released to entities other
than those enumerated above EXCEPT upon order of the
court.
Rights of the Data Subjects/Borrowers:
1. Right to access his/her own credit information;

2. Right to dispute erroneous, incomplete, or misleading credit information;
3. Right to a simplified dispute resolution process to fast track
settlement/resolution of disputed credit information;
4. Right to be informed of any correction or removal of any erroneous,
incomplete, or misleading credit information or from deletion of the disputed
information;
5. Right to indemnification in case of denial, without justification, of his/her
rights herein mentioned;
6. Right to be notified by a submitting entity of the latter’s obligation to submit
and disclose basic credit data to CIC; and
7. Right to know the cause of refusal of the credit application from a financial
institution that uses credit data as basis or ground for such refusal.

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CREDIT INFORMATION SYSTEM ACT

 The operations and services of a credit information system can be expected

Credit Information Corporation (CIC) – a GOCC which is tasked to enforce the

What is a Basic Credit Data?

It is the positive or negative credit information provided by a borrower to a

Positive Credit Information = Information/data concerning the credit

Negative Credit Information = Information/data concerning the poor credit

Credit Report – Summary of consolidated and evaluated information on

They are required to submit to CIC on quarterly basis current, objective,

 Any negative information shall stay in the CIC’s database

 Negative information shall be corrected and updated

Confidentiality of Credit Information/Credit Report:

Credit information should be treated with utmost confidentiality and shall

The CIC shall be authorized to release and disclosed consolidated basic

Rights of the Data Subjects/Borrowers:

1. Right to access his/her own credit information;

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