Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

515. To ask the Minister for Finance his views on whether it is fair that a married couple who are separating and are restructuring their joint loans can have their individual credit ratings downgraded as a result of this considering they are not in arrears and that they are essentially just taking out new loans; and if he will make a statement on the matter. [20437/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Central Credit Register (CCR) was established by the Central Bank of Ireland under the Credit Reporting Act 2013 (the Act).  The purpose of the CCR is to ensure that credit providers will have access to the most accurate and up to-date information regarding a borrower’s total debt exposure when considering an application for credit or when an existing loan is being restructured. Under the Act lenders are obliged to submit specified personal and credit information in respect of qualifying credit applications and agreements to the CCR.  In the case of credit agreements this includes factual information such as, where applicable, details of payment performance, credit status, restructure events etc.

The CCR assists lenders in their lending and credit management operations.  For example, it supports lenders when they carry out their creditworthiness assessments and provides factual information about the indebtedness profile of a borrower and their repayment performance on their individual loans.  However, the CCR does not produce credit scores or ratings and neither does it provide guidance or a recommendation to lenders on the decision they should make on an application for credit.  The decision on an application for credit, or in relation to the restructure of an existing loan, is a commercial matter for the relevant lender.  Neither I nor the Central Bank can become involved in the credit related decision making process of lenders.

Borrowers may access their credit report free of charge (subject to fair usage) from the CCR.  If a person believes that the information on their credit report is inaccurate, incomplete or not up to-date, they have a right to have the information corrected.  Also, if so desired, a borrower is entitled to provide an explanatory statement about information on his/her credit report which can explain an event or circumstances about a person's loan or loans.  Further information about these matters can be obtained from the Central Credit Register website.