New code to guide CRB listings by digital lenders
September 10, 2021 | 10:50 am
A new code of conduct is expected to guide the return of CRB listings by digital lenders who were thrown out of the credit information sharing mechanism by the CBK in April last year.
On Thursday, the Credit Information Sharing Association of Kenya (CIS) unveiled a new code of conduct for third party credit information providers.
The code which has the backing of the Central Bank of Kenya (CBK) is expected to provide a framework for best practice by the non-regulated players as they set themselves for a return to the credit information sharing mechanism.
Under amendments to the Central Bank Act which is currently under consideration of the National Assembly, digital lenders are set to be ushered back to credit information sharing which will allow parties to access and list borrowers with Credit Reference Bureaus (CRBs).
The code approved by May this year is premised on data quality, customer protection and customer-centricity. Parties are expected to sign up to the code by December 31 this year.
Principles of the code include customer consent which covers clear and specific consent by customers to parties in relation to the sharing of credit information.