Brendan Griffin (Kerry South, Fine Gael)
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160. To ask the Minister for Finance the manner in which lending institutes and the Irish Credit Bureau report and record will be reformed in view of the high volume of restructuring of debt taking place and the five year impact that this has on a person's credit rating; and if he will make a statement on the matter. [39173/13]

Michael Noonan (Limerick City, Fine Gael)
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I have no role in relation to the operation of the Irish Credit Bureau (ICB) which is a private entity. However, the Deputy will be aware of the significant reform of the credit reporting system which is being provided for in primary legislation through the Credit Reporting Bill, 2012. The Bill is currently passing through the Houses of the Oireachtas and provides for the creation of an effective credit reporting system including providing for the development of a statutory credit register owned and operated by the Central Bank of Ireland. The Central Bank will ensure the robust regulation of regulated financial service providers who fall under this legislation.

The Bill includes the following provisions:

- The database will be owned by the Central Bank and the Bank will be responsible for the operation of the Central Credit Register.

- There will be mandatory reporting of a comprehensive range of credit information by credit providers.

- Credit providers will be required to meet specified reporting standards in this regard (e.g. formats, timelines etc.)

- Credit providers will be required to make mandatory credit checks with the Register for all credit applications above a threshold of €2,000.

- The Bill provides for controls with regard to access to information on the Register. By including provisions relating to access to data and security measures as well as provisions to help to deal with identity theft, this legislation should inspire confidence in businesses and in the consumer.

- The legislation will extend the role of the Data Protection Commissioner to deal with complaints from micro enterprises and SMEs (with a turnover of less than €3m) in respect of their data held on the Credit Register.

- The legislation also extends to loans acquired or issued by NAMA and to loans issued by local authorities.

- In line with international norms, it provides for a retention period of 5 years in relation to credit information with respect to debts from the day on which it is entered on the Register. The Bill provides for the retention of information for a period of 6 months in relation to credit applications from the day it is entered on the Register. Anonymised information may be retained indefinitely.

The new Bill and oversight by the Central Bank will provide the statutory framework for a robust and well regulated credit reporting system for Ireland.