NCR Want Credit Bureaus To Better Report on Debt Review Payments
New NCR Guideline Regarding Credit Bureau Data
It has been a long time grip, of Debt Counsellors and consumers, that the way credit bureaus capture info about debt review can have a negative impact on a person’s credit score, even while they are loyally paying off their debt.
Recently, a big court case reminded everyone that debt review does not wipe out the original contract; it is basically a fancy repayment plan while over indebted towards that original debt. So, the fact that credit bureaus are not getting decent payment information from consumers’ credit providers while in debt review is problematic.
‘the fact that credit bureaus are not getting decent payment information from consumers’ credit providers while in debt review is problematic’
It also means that consumers who finish debt review (after loyally paying off their debts over time) often have to wait even longer to fully rehabilitate their credit score (which impacts the rate people pay for credit that they can afford to have).
It can take months to get a decent score that allows for better rates at a time when many people would like to take on credit for a bond or vehicle purchase.
Changes Coming?
The National Credit Regulator (NCR) recently issued a guideline asking credit providers to change their practices to better provide credit bureaus with information about payments during debt review.
While not binding, such guidelines from the NCR are often seen as the benchmark for best conduct within the industry.
It will be interesting to see how this impacts credit providers and credit bureaus going forward.
You can download the Guideline below
