Please pay your debts and do not think that the new Fair Reporting Credit Act will affect your loan payment obligations.
The Reserve Bank of Fiji has received information that some banking customers are interpreting the impending closure of the Data Bureau Limited due to the passing of the law, as allowing for dispensation on the payment of their existing loan obligations with licensed financial institutions.
The RBF reminds the general banking public that their loan agreements are between them and the licensed financial institutions, not the Data Bureau Limited, so they are contractually bound to continue to honour these debt obligations.
The RBF is now responsible to register, license and regulate credit reporting agencies, credit information providers and credit report recipients, and to maintain proper standards of conduct and acceptable credit reporting practices.
Transitional arrangements have also been specified under the Act for which the Reserve Bank will work closely with the relevant government agencies and private sector stakeholders, to ensure a smooth transition to the new legislative framework.
RBF Governor Barry Whiteside states that the regulatory role that the Bank now needs to undertake under the Fair Reporting of Credit Act is in line with the Reserve Bank’s mandate of maintaining financial stability.
He says due to the nature and confidentiality of information generally held with such credit data bureaus, it is important to have in place an effective legislative framework that will work without prejudice.
