Jackie Cahill (Tipperary, Fianna Fail)
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151. To ask the Minister for Finance his views on whether the functions carried out by the Irish Credit Bureau which is owned and run by the financial institutions in the State would better serve the economy and better protect persons if it were outside the control of the financial institutions; and if he will make a statement on the matter. [48938/17]

Jackie Cahill (Tipperary, Fianna Fail)
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152. To ask the Minister for Finance if the Central Bank supports the objectives of the Irish Credit Bureau (details supplied); the manner of that support; and if he will make a statement on the matter. [48939/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 151 and 152 together.

As the Deputy may be aware, the Irish Credit Bureau does not fall under the statutory remit of the Minister for Finance. Furthermore, the Irish Credit Bureau does not fall under the regulatory remit of the Central Bank of Ireland. The stated objectives of private companies are a matter for the companies themselves.

However, the Deputy may wish to note that the Government gave a commitment as part of the EU/IMF Programme of Financial Support for Ireland to develop a legal framework that would facilitate the collection and centralisation of financial information on loans. The Credit Reporting Act 2013 was framed from the recommendations of the Report of the Inter-Agency Working Group on Credit Histories, which recommended the establishment of a central credit register to resolve weaknesses identified in various reports published subsequent to the banking crisis.  The Credit Reporting Act 2013 provides for the establishment of a Central Credit Register, a new centralised system for collecting, on a mandatory basis, specified personal and credit information on loans and other credit agreements and which will be operated by the Central Bank of Ireland. The Register will collect and hold information on loans valued at €500 or higher. Lenders will be required to check the Register when considering credit applications for €2,000 or more.

The Central Credit Register is being implemented on a phased basis with phase 1 focusing on the submission of information on consumer loans.  Phase 1 commenced on 30 June 2017 and lenders must have completed the submission of Phase 1 data by 31 December 2017, backdated to 30 June 2017. 

Phase 2 focuses on submission of information from licensed moneylenders, local authorities and business loans and is scheduled to commence on 31 March 2018.  Subject to data quality assurance, it is anticipated that credit reports will be available for lenders and borrowers in 2018.

Once operational the Central Credit Register will:

- Provide lenders with information on a borrower's existing credit position to aid their assessment of a borrowers’ creditworthiness

- Equip borrowers with information on their financial profile

- Give the Central Bank better insight into financial markets and support several functions such as prudential supervision, statistics, and financial stability.

Under the Act, borrowers have the following rights:

- Request their credit report for information on the central credit register in respect of them

- Insert an explanatory statement on their credit report

- Apply to have information amended

- Report and be informed of suspected impersonation

Lenders may only request a borrower's credit report when a borrower has:

- Made an application for a new loan

- Applied to have an existing loan restructured

- Arrears on an existing loan or breached the limit on a credit card or overdraft.