Various revisions to Credit Data Regulations that ease things for customers and improve the advice provided were approved today by the Economic Affairs Committee
Most of the leniencies will go into effect in the coming period, in order to assist borrowers in the COVID-19 period.
The Bank of Israel, in collaboration with the Ministry of Justice, led a process to promote various revisions in the Credit Data Regulations, 5778-2017, looking out for the customer’s benefit from several perspectives. The main revisions are: shortening the period during which a check returned for insufficient cover shall be considered negative information with regard to a creditworthiness assessment, promoting issues that will allow an improvement in providing financial advice to customers, and providing flexibility for adjusting the format of the customer’s consent letter to the various platforms and in a clear consumer language.
The regulations were approved today by the Knesset’s Economic Affairs Committee. Some of the regulations will go into effect within 6 months from the date of the regulations being published in the government gazette (“Reshumot”) in order to provide preparation time.
Supervisor of Credit Data Sharing Eyal Hadad, CPA, said, “Against the background of the experience accumulated since the establishment of the Credit Data System, in view of the needs that arose from handling public enquiries and looking out for customers’ best interests, we promoted these revisions in the credit data regulations. These changes are very important, particularly in this time.”
Following are highlights of the changes in the regulations:
- Shortening the length of time, to only one year, for which an alert is presented when receiving a creditworthiness assessment, in view of 5 checks refused (instead of 3 years).
- The consent letter, which a customer is required to sign in front of the credit provider in order to receive the customer’s credit report, is to be formulated clearly, in a language that is convenient and accessible to the customer.
- With the goal of the data in the credit data system reflecting the customer’s legal situation in a more reliable and precise manner, a report to the Credit Data System on “issuing a suspension order for the start of the restriction” (in accordance with Section 10a of the Checks without Cover Law) was added.
- A customer will be given the right to enable a paid authorized representative that is advising him to store his data for a lengthy period as well, and in order to receive high-quality and continued advice.