Law Summary
Objectives of the Circular
- Enforce the provisions of the Credit Information System Act and its implementing rules.
- Mandate submitting entities to regularly provide borrower credit information to the CIC.
- Ensure compliance with relevant regulatory requirements.
- Prescribe procedures and rules for submission and updates of credit data.
Scope of Entities Covered
- Applies to universal, commercial, thrift banks, rural banks, quasi-banks, and their subsidiaries or affiliates.
- Encompasses life insurance companies, mutual benefit associations, credit card and financing companies.
- Includes trust entities, investment houses with quasi-banking licenses, microfinancing NGOs, government lending institutions (GFIs and GOCCs).
- Cooperative lenders and other credit-providing entities are also covered.
Key Definitions
- Accessing Entity: Entities authorized to access consolidated credit data.
- Affiliate: Corporations with 10-50% voting stock ownership or under common control.
- Basic Credit Data: Positive and negative credit info related to borrower’s credit facilities, excluding confidential bank deposits unless waived.
- Borrower: Any natural or juridical person, including LGUs, applying for or availing credit.
- Consolidated Credit Data: Basic credit data plus other data held by CIC.
- Credit Facility: Loans, credit lines, guarantees, and financial accommodations excluding bank deposits.
- Data Subject: Borrower or applicant for credit.
- Deposit and/or Fund Waiver: Borrower’s written waiver of confidentiality on bank-related information.
- Error Report: CIC system-generated file errors report.
- Negative Credit Information: Data reflecting poor credit performance or adverse financial conditions.
- Positive Credit Information: Data on timely repayments and good credit standing.
- System: CIC’s program and database for credit data access.
- Update Cycle Date: Deadline for submitting updated credit information, typically monthly.
Obligations of the Submitting Entity
- Notify borrowers in writing about submission of their credit data to the CIC.
- Maintain and be prepared to submit notification letters and waivers to the CIC upon request.
- Submit all borrower basic credit data timely by the 5th day of each month in the prescribed format.
- Ensure submitted data is accurate, complete, and updated according to the update cycle.
- Correct errors identified by the CIC within 3 working days.
- Establish an internal dispute resolution process for borrowers’ credit data disputes, resolving them within 5 working days.
- Cooperate fully with the CIC regarding disputes about erroneous or incomplete credit data.
- Educate borrowers on the importance of maintaining a good credit record.
- Access to the CIC system for borrower inquiries limited to entities in good standing complying with CIC rules.
- Compliance with these provisions required to maintain good standing; violations subject entities to fines and penalties under the Act, IRR, and CIC or SEC rules.
Repealing and Separability Clauses
- All inconsistent rules, orders, or regulations are repealed or amended accordingly.
- If any provision is declared invalid or unconstitutional, the remaining provisions shall remain effective.
Effectivity
- The Circular takes effect 15 calendar days after publication in the Official Gazette or a general circulation newspaper.
- Filing of three certified copies with the University of the Philippines Law Center is required.
Signatory
- The Circular was signed by Mr. Jaime Casto Jose P. Garchitorena, President, on 15 May 2015 in Makati City, Philippines.