THE Credit Information Corp. (CIC) announced it has issued a new pricing scheme for financial institutions using its credit report in assessing their borrowers to encourage more usage of the system.
As approved by the Securities and Exchange Commission (SEC) en banc, financial institutions will be subject to a wholesale price of P10 per credit-report inquiry through the pre-purchase of a minimum of one million reports per year.
Meanwhile, a retail price of P15 per credit report applies for all other cases of access to the CIC database.
The CIC is the country’s sole public credit registry and repository of credit information.
“The new pricing scheme is intended to provide incentives to accessing entities and drive volume consumption of the CIC basic credit reports while ensuring improved revenue flow to sustain operations and enhance service quality,” CIC President and CEO Ben Joshua A. Baltazar said.
The scheme will be effective starting August until 31 January next year.
“As the economy tries to bounce back from the devastating effects of the pandemic, the CIC would like to offer more flexible and competitive options for our financial institutions—big or small—to review loan applications and properly manage investment risks through the CIC Credit Report, which provides a comprehensive and a more balanced view of a borrower’s credit behavior,” Baltazar said.
Financial institutions will still have the option to access either directly through the CIC or through its special accessing entities (SAEs) namely, CIBI Information Inc., CRIF D-B Philippines Inc. and TransUnion Information Solutions Inc., which provide value-added services such as credit scoring and portfolio monitoring.
Consumer credit scores may also be availed directly through CIBI Information Inc.’s myScore web portal.
A “No Hit, No Pay” policy is being adopted by the credit registry under the new payment scheme to encourage lenders to use the CIC data with confidence.
“Under this new policy, all types of credit report inquiries will not be charged if the result is a “No Hit,” which I believe is only fair for all our accessing entities and even our SAEs,” Baltazar said.
The policy will begin August 1 and will remain in effect until further notice.