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In the last post, I discussed how countries use the Positive Registry. In this article, you'll discover the particularities of important markets around the world.
Positive registration in the United States
The credit information collected includes account opening date, credit limit, monthly payments, arrears and payment history. There is also a list of the companies that accessed the data.
Race, gender, nationality and religion are not variables used to assess credit risk. Any incorrect information must be corrected or deleted within 30 days.
Positive registration in the UK
The information obtained by the bureaus, such as personal data, account types and arrears history, can be shared with banks, telecommunications companies, utilities and other credit providers.
The Data Protection Act of 1988 lays down rules on the processing of personal data. The legislation provides for one purpose, that of preventing fraud and supporting debt recovery, for the sharing of credit data.
Positive registration in Germany
Credit information is even required to sign property rental contracts, which highlights its importance in the economy.
In order for the bureau to be able to provide consumer information to financial institutions, the person's express consent is required, as well as the purpose for which the data is to be used being clear under the law.
Positive registration in Belgium
Belgium had legislation that prevented the Cadastro Positivo, but the situation changed in 2003 with the approval of a specific law to regulate the use and sharing of credit data.
The gains from adopting the Positive Registry have been enormous for the economy. From 2003 to 2008, the growth in the population with at least one credit account was 9.4%. In 2014, 66% of the population had at least one credit account.
Positive registration in Mexico
An individual's credit data can be consulted by financial institutions as a way of analyzing or determining whether the profile fits a particular product. For this specific use, prior authorization from the consumer is required.
In general, for traditional uses, the system works on the basis of compulsory inclusion, i.e. all consumers are part of it and there is no possibility of leaving.
Since Mexico has data protection legislation, borrowers who do not agree with the information in their credit history can request that it be corrected from the bureaus.
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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor
