CBN, Credit Bureaus, NDIC, Highlight the importance of maintaining a good credit history

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L-R: Representing Tunde, Ahmed Popoola, GMD, CRC Credit Bureau, Peggy Chukwuma -Nwosu; representing Lamido Yuguda, the DG of SEC, Bagudu Gudu, followed by  representative of Bello Hassan, MD/CE of Nigeria Deposit Insurance Corporation NDIC, Hawuwa Gambo, and the President of FiBOP, Charles’ Onwuatogwu at the 2023 FiBOP Annual Conference of the association held over the weekend at the prestigious Orchid Hotels, Lekki, Lagos.

The Group Managing Director/CEO of CRC Credit Bureau, Ahmed ‘Tunde Popoola has said that credit defaulters, whether of failed or acquired banks will find it difficult to access new credits unless they cleared their names with their former creditors to obtain positive report from rating agencies. “There is no more lending in the dark”.

Popoola was represented by the Chief Commercial Officer of CRC Credit Bureau, Peggy Chukwuma – Nwosu at the 2023 Finance and Business Online Publishers, FiBOP, Conference held at Orchid Hotels in Lekki Lagos over the weekend.

She stated that  the bureau maintains a database of both positive and negative credit information. The credit bureaus are regulated by the Central Bank of Nigeria and work in synergy with NDIC as well as other agencies.

In her contribution to the conference  theme : Mitigating Risk and insecurity using insurance and Technology in a harsh economy,  Chukwuma – Nwosu explained that the report on such individuals or organisation will be negative as long as they fail to meet up their obligations to their creditors.

According to her “the bureaus maintain a database of loans and credit lines as submitted by creditors and these same institutions make use of credit information whenever they inquire about their customers’ credit behaviour under permissible purposes as outlined by the Credit Reporting Act 2017 and the Guidelines  for the Licensing, Operations and Regulation of Credit Bureaus by the Central Bank of Nigeria 2013.

While maintaining that all licensed lending institutions are mandated by law to furnish Credit Bureaus with  information regarding their lending activities or operations, Chukwuma – Nwosu noted that other sectors of the economy have begun to see the value of the credit ecosystem and use it for their decision-making.

She equally revealed that in some cases where there are disputes, like when a debtor claims to have met up with his/her obligations and such is not reflected in their records or ratings, CRC Credit Bureau will at minimal or no extra charges assist such clients in resolving the issues by reaching out to the lending institution that provided the information. Instances where borrowers insist that they are no longer indebted and the lenders have a contrary view, the only remedy is for the borrowers to go and reconcile with their former creditors. The data provider will update the bureau on the current status of the loan or line of credit.

The concerned party can also contact the information provider to resolve any disputed area.

Citing example of some bank defaulters who were asked to bring their credit report by some foreign companies and universities, Peggy said they are denied loans credit lines. This leads to their denial of such golden opportunities.

Those who are in the habit of not paying their debts within a stipulated time frame given by their lenders are often classified as negative when compared to those who meet up with their obligations as at when due.

She further stated that when banks fail the information goes to NDIC and that the borrowers still have to pay as they are not discharged of their obligations. Such customers that are reported as defaulting, she declared are often denied whenever they seek new credit.

She explained further that when a person’s name is on its database, it simply means the bureau has a comprehensive record or history of the persons borrowings and repayments to their creditor(s). This helps them to provide a report depending on the kind of information required by the lender or credit grantor.

Individuals can also have access to their credit history by downloading the CRC Mobile App on Playstore and IOS Stores, for android and iPhone, to request for this.

This helps them keep track of their credit worthiness and take steps to maintain excellent credit scores thereby making them attractive to lenders.