Al Etihad Credit Bureau Bylaws Approved by the UAE
Posted On May 29, 2014
Over the last few months, there has been a great deal of uncertainty surrounding the eagerly anticipated launch of Al Etihad Credit Bureau. The Bureau, which was created officially in 2010 by way of Federal Law No. 6, is intended to gather, analyze and circulate consumer credit information that it collects from financial institutions in the UAE.
Cabinet resolution No. 16 of 2014, issued by His Highness Shaikh Mohammad bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, makes way for the inauguration of the credit bureau. The official launch of AECB was supposed to take place sometime within the first quarter of this year; however the inability to collect date resulted in the delay of the launch (you can read more about this here).
The Bureau, which will be filling a huge information and data gap in the industry, will be able to provide banks and financial institutions accurate data on consumers that is crucial for UAE banks when making lending decisions. This will help regulate the market and ensure that consumers are not allowed many different credit lines at several banks, thereby creating a higher risk of loan losses.
One of the most important aspects to note is that the bylaws define the different entities that are able to request credit data and information from Al Etihad, this includes local and federal government bodies, banks, investing & leasing companies, commercial & professional establishments, financial institutions, cooperative associations and branches of foreign companies that are legally registered in the UAE.
To obtain a credit information report from the Al Etihad Credit Bureau, applicants need to apply to the credit information system, complete the application form and also make sure to abide by the rules and regulations that are set forth by the Central Bank of the UAE. The report will include any information regarding defaulted payments, refusal to pay, and any judicial decisions that were awarded against a borrower. The applicant must enter a date range that does not exceed five years from the application date.
The resolution prohibits anyone who gains access to the data of Al Etihad Credit Bureau to collect, register, share, publish or trade the information given out in the reports. If any mistakes or inaccuracies are found, the applicant or person mentioned in the report has the right to complain and lobby a case by providing supporting documents.
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