by Linda Straker
- Purpose of collecting data is to create credit history and provide credit score
- Credit Reporting Act approved and effective in 2017
- Notice dated 22 December published on Ariza Credit Union’s Facebook page
A second financial institution has officially informed its customers and membership that their data with the entity will be shared with credit bureaus licensed under Section 4 of the legislation, which was approved in the Houses of Parliament in 2017 and went into effect in November of the same year.
“Effective 2nd December 2025, Ariza Credit Union will provide credit information to licensed credit bureaus as permitted under the Credit Reporting Act, 2017,” said a notice on the Ariza Credit Union’s Facebook page dated 22 December. Under the law, credit unions and other financial institutions are described as primary credit information providers.
On 2 December 2024, the Grenada Cooperative Bank, as a primary credit information provider, began forwarding its customers’ credit information to credit bureaus licensed under Section 4 of the legislation, which was approved by the Houses of Parliament in 2017 and took effect in November of the same year.
The Eastern Caribbean Central Bank (ECCB) is the sole body authorised to issue licenses for the operation of credit bureaus. Currently, Grenada is served by a single licensed credit reporting agency for the Eastern Caribbean Currency Union (ECCU), EveryData ECCU Limited.
The Credit Reporting Act provides for a fair and an accurate credit reporting system within the financial system in order to assure objective credit decisions; to enable credit information sharing and reporting; to provide for the regulation of the conduct of credit reporting and credit reporting services; to provide safeguard for data protection for customers of credit providers; to provide for a single space in the regulation of credit reporting and for related matters.
Section 27 of the legislation explains that a credit information provider shall, upon providing credit to a data subject or entering into a credit or loan agreement with a data subject, furnish to a credit bureau, information with respect to the data subject from the date of the provision of the credit to the data subject; and within the time specified in the subscriber agreement with the credit bureau.
The law defines a “data subject” as anyone or person whose information has, or may have, been furnished to the credit bureau by reason of a contractual relationship with a credit provider, a loan application signed by the person, or any other legitimate purpose, as well as anyone who is a guarantor of a person. A credit information provider is any credit provider that is defined as:
- a bank or financial institution licensed under the Banking Act, 2015
- a money services business licensed under the Money Services Business Act, Chapter 198A
- a credit union or similar co-operative institution registered under the Co-operative Societies Act, Chapter 66A
- an insurance company licensed under the Insurance Act, Chapter 150; or
- a micro-finance institution licensed under any enactment regulating micro-finance institutions
The legislation explains that “The Central Bank may, by written notice published in the Gazette, designate any of the following entities as a credit information provider if the Central Bank considers that it is in the public interest for the entity to be so designated as a secondary credit information provider.”
Entities include
- a telecommunications provider licensed under the Telecommunications Act, Chapter 315C
- Grenada Electricity Services Limited and any other person licensed under the Electricity Supply Act, 2016
- National Water and Sewerage Authority, established under the National Water and Sewerage Authority Act, Chapter 208
- Grenada Development Bank, established under the Grenada Development Bank Act, Chapter 129; or
- a person carrying on the business of selling goods under hire purchase or credit sales under the Hire-Purchase Act, Chapter 134
“Before the Central Bank designates an entity under subsection (3) as a credit information provider for the purposes of this Act, the Central Bank shall consult the relevant Minister and the regulator of the entity,” the Act recommends.
Existing customers of the designated credit information providers do not have to sign a consent form; however, the institution is required to place a notice at the business place’s physical location or its website.
“A person shall not inquire on the credit information respecting any data subject without first obtaining the consent of the data subject,” said the legislation which explains that a credit information provider may disclose to a credit bureau both negative and positive credit information without first obtaining consent from a data subject, if the credit information provider provides notice to the data subject that credit and personal information may be disclosed to a credit bureau.
Notice may be given by the credit information provider through posting a notice at its place of business, on the website of the credit information provider or by any method that the credit information provider deems appropriate.
The purpose of collecting the data is to create a credit history and provide a credit score for each person.
The reporting of credit history of customers can be a good thing but there us a need to ensure the accuracy of the data. There must be a clear and simple process for customers to get errors corrected. And customers should be able to add commentary to thei data such as “due to hurricane our business was destroyed hence why my loan payments were late in the following months…” . There must be stiff sanctions for unauthorised access. There must be a simple process for customers to gain access to their data.