What is CIC’s corporate structure?

The CIC is a government-owned and-controlled corporation wherein sixty percent (60%) of its shares are held by the national government and forty percent (40%) of which are held by industry associations namely, Rural Bankers Association of the Philippines, Bankers Association of the Philippines, Chamber of Thrift Banks, Philippine Cooperative Center, and Credit Cards Associations of the Philippines.

Is there an annual fee?

For submitting entities as accessing entities, there are no annual fees. The payment is on a per access basis which is Forty Nine Pesos (PHP49.00) VAT exclusive.

Are Submitting Entities required to submit all their borrowers’ data?

Yes, they must submit all credit data of their borrowers in their database.

Can a borrower refuse to submit his credit data?

No. A borrower cannot refuse to submit his credit data. All borrowers’ credit data, through their credit facilities under Republic Act No. 9510 or the Credit Information System Act (CISA) are mandated to submit to the Credit Information Corporation all data pertaining to credit. Notification of the existing law to the borrower is enough for the implementation of R.A. No. 9510.

Will the CIC charge Thirty Thousand Pesos per day if the Submitting Entity fails to comply?

Not necessarily, the law provides that the amount will be determined by the CIC taking into consideration the nature and gravity of the violation or irregularity, but in no case to exceed Thirty Thousand pesos (Php 30,000.00).

Is submission of data to the CIC violative of the Data Privacy Act?

No, the Data Privacy Act excludes the CIC th provides in Section 4 the following:

SEC. 4. Scope. – This Act applies to the processing of all types of personal information and to any natural and juridical person involved in personal information processing including those personal information controllers and processors who, although not found or established in the Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines subject to the immediately succeeding paragraph: Provided, That the requirements of Section 5 are complied with.

This Act does not apply to the following:

xxx	xxx	xxx

(e) Information necessary in order to carry out the functions of public authority which includes the processing of personal data for the performance by the independent, central monetary authority and law enforcement and regulatory agencies of their constitutionally and statutorily mandated functions. Nothing in this Act shall be construed as to have amended or repealed Republic Act No. 1405, otherwise known as the Secrecy of Bank Deposits Act; Republic Act No. 6426, otherwise known as the Foreign Currency Deposit Act; and Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA);

(f) Information necessary for banks and other financial institutions under the jurisdiction of the independent, central monetary authority or Bangko Sentral ng Pilipinas to comply with Republic Act No. 9510, and Republic Act No. 9160, as amended, otherwise known as the Anti-Money Laundering Act and other applicable laws; [emphasis supplied]

Why are cooperatives included as Submitting Entity?

One of the bills proposing for the creation of the CISA was House Bill No. 2443 which was aimed for the benefit and inclusion of cooperatives in the economic scene. Said Bill was introduced by Rep. Guillermo P. Cua of the Coop-NATCCO. In Rep. Cua’s Explanatory Note thereto, it was stated:

Currently, the banking and finance industry in the country rely on the Credit Information Bureau, Inc. (CIBI) to gather credit information on prospective borrowers. The CIBI, while composed of associations of organizations of the banking and finance industry, is not regulated by the Monetary Board. Due to lack of regulation, it is quite possible, that the credit information sourced from the CIBI is not reliable and is limited. The credit information may be limited because (1) other organizations with credit functions are not members and so do not submit data on their borrowers, most savings and credit cooperatives for example, are not members of the CIBI; (2) there is no regulation as to the accuracy of the credit data that is submitted; (3) Most importantly, there are no existing sanctions/ penalties for persons and organizations who provide inaccurate credit information to the detriment of the general public and/ or who publicize credit information acquired through the credit investigation process.

There therefore is a need to establish a credit information system, one that will be regulated by the Monetary Board, and one whose membership will be expanded to almost all if not all of the organizations which provide credit to the general public. Through a stronger credit information system banks and other financial institutions will be more ready and willing to extend financial assistance and services to borrowers, knowing they have exhaustive and reliable credit information on these borrowers. Moreover, with a more efficient credit information system, the processing of loans will be shortened, making financial institutions more efficient and thus more profitable. 

Prescinding from the foregoing, the passage of this bill is earnestly sought. [emphasis supplied]

When CISA’s House Bill was being approved on its 3rd Reading at the House of Representatives, the results showed 198 votes in favor and none against. As a matter of fact, one of the proponents of the Cooperative Code of 2008 former Congressman Pablo “Noy Pabling” Garcia and his son, former Congressman Pablo John F. Garcia approved the said Bill.

Who were the notable proponents of R.A. No. 9510?

R.A. No. 9510 was legislated by brilliant legislators and legal luminaries, including: then Congressman and now sitting Sen. Juan Edgardo “Sonny” Angara and former Sen. Edgardo Angara.

Why is the CIC conducting educational campaigns?

The CIC is mandated by R.A. No. 9510 to do educational campaigns. Section 7 further provides the reasons for the educational campaigns:

a.	To promote the benefits of a credit information system to the economy
b.	To create awareness on the rights of consumers/borrowers to access their credit reports collected, stored and disseminated by the CIC
c.	   To disseminate the rights of borrowers to dispute any incorrect/inaccurate credit information in the database file of the CIC
d.	To familiarize consumers of the procedure in collecting, storing and disseminating credit information of borrowers by the CIC
e.	To brief consumers of other related information

Does R.A. No. 10173 known as the Data Privacy Act of 2012 amend/repeal or make inoperative R.A. No. 9510?

No, the Data Privacy Act of 2012 expressly provides in Section 4(e) that it does not amend or repeal Republic Act No. 9510. (Section 4 (e) is cited under A5 above)

Does R.A. No. 9520, better known as the Cooperative Act of 2008 automatically repeal R.A. No. 9510?

No. Even though R.A. No. 9520 was enacted at a later date, said law does not automatically repeal R.A. No. 9510. RA No. 9520 does not even mention any degree of repeal, whether express or implied, of R.A. No. 9510. Section 143 of RA No. 9520, as worded, does not suffer from any ambiguity. Any concept of a repeal of R.A. No. 9510 advanced by section 143 is absent, and any catch-all provision mirroring a repeal will not affect 9510 as it is not expressly repealed by the said section. In the same vein, RA No. 9520’s repealing clause specifically enumerates the various laws it repealed, and RA No. 9510 was not expressly stated. Expresio Unius Est Exclusio Alterius – Express mention is implied exclusion. Both laws were enacted by the 14th Congress, and if the latter intended to have any law repealed, it would have done so expressly for it was in the best position to do so.

What are the required submissions of insurance companies, mutual benefit associations and other similar entities supervised by the Insurance Commission?

Aside from policy loans, insurance companies, mutual benefit associations and other similar entities supervised by the Insurance Commission are required to submit premium payments and insurance contracts.

What is the purpose of submitting premium payments?

The data submitted to the CIC will form an essential component in assessing the creditworthiness and payment behavior of policy holders.

Are employee loans required to be submitted to the CIC?

It depends. Generally, all loans or other credit accommodations availed of by employees as part of their compensation package are not required to be submitted. However, if the loans or credit accommodations are subject to the same terms and conditions imposed on commercial transactions of the company, if there are any, should be submitted to the CIC.

Are agent’s loans required to be submitted to the CIC?

It depends. If the loans are merely incidental to the insurance company’s engagement with its agents and are treated similarly with that afforded to employees, then such are not required to be submitted to the CIC. However, if the loans or other credit accommodations were extended to agents with the same terms and conditions imposed on commercial transactions, such should be submitted to the CIC.

What is a credit report?

A credit report is a summary of your financial transactions submitted to the Credit Information Corporation (CIC). The CIC has the authority to gather and collate these reports under Republic Act 9510.

What does a credit report contain?

A credit report contains your basic information such as your name, TIN, SSS or GSIS numbers, place of residence, employer, and business. It will also include all of your loan contracts with lending institutions, utility subscriptions, and other obligations which the CIC is authorized to collect.

Who can see my credit report?

Your credit report can only be accessed with your explicit authorization. This access is limited only to yourself or the financial entity you are transacting with.

What are the benefits of my credit report?

In the process of obtaining a loan or service, you may be asked by the lender or service provider to sign a waiver of access. Your credit report will allow the lender or service provider to assess your application in a fair and objective manner. In general, people with good track records of payment may receive lower interest rates or more services than those with poor payment track records.

Can my credit report be used by others and for other purposes other than what I allowed it to be used for?

Use of your credit report is limited to the specific purpose and duration that you authorized. Once the specific transaction is completed, the report cannot be recycled, passed on, sold on, or used in any way other than for the specific purpose you authorized.

Can I get a copy of my own credit report even if I am not applying for a loan or a service?

Yes. You may obtain your own credit report at the CIC or from the CIC's accredited credit bureaus referred to as Special Accessing Entities (SAEs). Getting your credit report will require you to fully identify yourself to the SAE, via valid identification cards or forms, in order to assure the security of data.

Can I refuse to have my data submitted to the CIC?

No. A person's credit data is collected by the CIC through the various lending institutions and service providers that are part of the submitting institutions covered by R.A. 9510.