Banks and other lending institutions will have to seek a credit report for a person applying for a loan of €2,000 or more from the end of this month.
Since June 2017 lenders have been submitting information to the Central Bank of Ireland on credit cards, mortgage overdrafts and personal loans to its central credit register.
The register was established under the Credit Reporting Act, 2013, to allow for better insights into the patterns of lending in the economy.
When it comes into affect at the end of this month, lenders will be obliged to consult the register if it’s considering loan applications of €2,000 or more.
But the new register will not collect any information on car loans or hire purchase agreements, a fact first reported in The Irish Times in June 2017. On Tuesday, the Central Bank said that information "will be included once legislation has been amended".
Business loans
Similarly, business loans have yet to be included on credit reports as information on that type of lending has only been submitted since March 30th, 2018. The bank said business loans will be included “once data quality can be assured”.
“The Central Bank is committed to serving the public interest by safeguarding monetary and financial stability and working to ensure that the financial system serves the needs of the economy and its customers over the long term,” the bank said.
In addition to financial institutions being able to access the register, consumers can continue to access their own credit reports free of charge, subject to fair usage.
