There was no need for consultations with other stakeholders on the Fair Reporting of Credit Act before it was passed in Parliament as government believes that the new law is for the benefit of the people of Fiji.
This comment was made by Minister for Industry, Trade and Tourism, Faiyaz Koya in a press conference yesterday afternoon.
The Minister says for more than a decade, the people of Fiji have been suffering at the hands of the only credit reporting agency in Fiji, the Data Bureau and this had to be stopped.
Koya also highlights that if the banks want to take legal action through bankruptcy no one can stop them since that is the law.
Meanwhile, Consumer Council of Fiji CEO Premila Kumar reiterates that they are extremely pleased with the government’s decision on Fair Reporting of Credit Act.
The Data Bureau Chairman Gary Callaghan says there was no consultation with the stakeholders.
The Association Of Banks In Fiji has expressed their disappointment in regard to the passage of the Fair Reporting of Credit Act.
Chairman Kevin McCarthy said the act has been passed with zero consultation with any of the stakeholders.
He said this includes the Data Bureau, commercial banks, finance companies, hire purchase and credit providers.
McCarthy said the inability now to be able to search a person’s credit history will greatly increase the risk levels within the personal lending market.
The Association of Banks said lenders will have little option but to increase interest rates to compensate for the increased risk.
McCarthy said banks have already been contacted by borrowers in arrears stating that if there is no Data Bureau, they see no need to pay back their loans.
He said the banks will have no option but to pursue legal action through to bankruptcy to enforce payment of these loans.
The Association of Banks also said that processing times for loan approvals will now increase as banks ask borrowers to provide evidence of having paid off loans in the past.
All credit history with the Data Bureau of Fiji will now be erased after the Fair Reporting of Credit Bill was passed by parliament.
The new law requires credit reporting agencies to obtain a license from the Reserve Bank of Fiji.
Credit reporting agencies will also be required to submit to the Reserve Bank an annual compliance report in addition to its audited financial statements.
Data which is currently with the Data Bureau will also need to be verified by the Reserve Bank.
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