ECCU Announces Launch of Credit Bureau

The Eastern Caribbean Central Bank has announced that EveryData ECCU Ltd has been licensed to operate in Montserrat.

In a press release ECCB says in accordance with the Credit Reporting Act, all entities classified as Credit Information Providers (CIPs), are required to share information with the licensed credit bureau.

These include banks, financial institutions, money services businesses, credit unions, insurance companies, and micro-finance institutions, and any other entities designated by the ECCB.

EveryData ECCU Ltd. is scheduled to go live with its credit reporting operations in September 2024.

Accordingly, each CIP is required to share credit information on all borrowers with the licensed credit bureau, provided that the CIP notifies borrowers via posting a notice at the CIP's business location, website, or through other appropriate methods.

The credit bureau is designed to improve the assessment and pricing of credit risk and help expand credit in the ECCU.

According to the ECCB the purpose of the credit bureau is to collate information on customers’ borrowing behavior from credit providers such as banks, insurance companies, mortgage companies, credit unions, telecommunications companies, utility companies, and also public sources like courts, and civil records offices to create a credit history.

Before the creation of the credit bureau, banks and other lenders had to make contact with all the references provided in an individual’s or business’ application for credit and perform credit checks with previous lenders to see if that individual or business was a responsible borrower. 

The establishment of a credit bureau to provide financial institutions and other types of credit granting institutions access to an individual’s or business’ credit history makes credit information sharing much easier.