ADVOKS GLOBAL · KENYA
The Banking (Credit Reference Bureau) Regulations
63. Responsibilities of institutions and credit information providers
Edition: 2022-12-31 · In force
63. Responsibilities of institutions and credit information providers
(1)Each institution or third-party credit information provider shall—(a)notify the customer at least one month before a loan becomes non-performing that the institution shall submit to a bureau the information on the loan immediately it becomes non-performing:Provided that for loans whose repayment interval or period is less than one month, the notice shall be served two weeks before the loan becomes non-performing;(b)notify each customer, within thirty days of the first listing, that the customer's credit information has been submitted to all licensed Bureaus; and(c)issue an adverse action notice to a customer against whom a decision has been taken or determination made, in whole or in part, that may be adverse to the interests of the customer based on the information obtained from a bureau.(2)An adverse action notice issued under paragraph (1) (c) shall be provided at the time the adverse decision or determination is communicated to the customer and shall notify the customer —(a)that customer information played a role in the decision;(b)the name, address and telephone number of the bureau that provided the customer information;(c)the customer's right to a copy of the information provided by the bureau at no cost to the customer; and(d)the customer's right to dispute such information with the bureau and, if the information is erroneous or outdated, to have it corrected.(3)An institution or third-party credit information provider shall be considered to have notified the customer if the institution or third-party credit information provider sends the notification issued under paragraph (1) to the customer's last known address or contact details by any of the print and electronic communication mediums provided for under these Regulations and the evidence of the notification shall be retained by the institution or third-party credit information provider.(4)An institution or third-party credit information provider shall submit and update all customer information to the bureau in accordance with these Regulations.(5)Where an institution or a third-party credit information provider has provided customer information to the bureau and subsequently becomes aware that the information was inaccurate at the time it was provided, the institution or third-party credit information provider shall, within five working days from the date the institution or the third-party credit information provider becomes aware of the inaccuracy, give the bureau an amendment notice instructing it to delete the inaccurate information and replace it with the correct information.(6)An institution and a third-party credit information provider shall ensure that the customer information furnished pursuant to this regulation is provided to all licensed bureaus or to a centralized point or location or through an industry tool that facilitates centralized submission of credit information from which all bureaus can access the information.(7)An institution and a third-party credit information provider shall establish and maintain functional units or dedicate competent staff to receive and resolve complaints or disputes arising from credit information sharing activities.(8)An institution and a third-party credit information provider shall resolve complaints within thirty days from the date of receipt of a complaint.(9)An institution or a third-party credit information provider which fails to comply with this Regulation may be liable to such penalty not exceeding one million shillings or such administrative sanction as the Central Bank may consider appropriate.(10)An institution which fails or neglects to submit to the bureaus credit information of a person whose credit information ought to be submitted to the bureaus shall be liable to such penalty not exceeding two million shillings for each failure or to such administrative action as the Central Bank may consider appropriate.