Credit Bureau Asia's subsidiary to operate Moneylenders Credit Bureau
CREDIT Bureau (Singapore) (CBS), a subsidiary of mainboard-listed Credit Bureau Asia (CBA), has been designated as the new operator of the Moneylenders Credit Bureau (MLCB), CBA said on Wednesday.
The designation was awarded to CBS by the Ministry of Law (MinLaw) after a "competitive tender process" and will commence on July 1. Existing services for licensed moneylenders and borrowers will not be affected, CBA noted.
The MLCB is a central data repository of borrowers' loans and repayment records with licensed moneylenders, set up in 2016. The information is used by licensed moneylenders in considering loan applications, and by borrowers to manage their loans and financial situation. Individuals can also register with the MLCB for self-exclusion, to voluntarily exclude themselves from applying for unsecured loans from licensed moneylenders.
The MLCB does not collect data on borrowers' bank credit facilities or bank deposit information, or make lending decisions on behalf of the moneylenders. The data in the repository is accessible by licensed moneylenders only for the purpose of loan assessment of borrowers, and borrowers can only access their own loan information reports. It is also used by MinLaw and the Registry of Moneylenders for regulatory purposes.
CBS will collaborate with the Credit Association of Singapore (CAS) and its members to promote financial literacy amongst the public and promote good borrowing habits and financial responsibility.
It will also work with the Registry of Moneylenders to increase security in the moneylending industry and guard against potential fraudulent scam activities through public education and regular industry engagements.
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Said William Lim, executive director of CBS: "In addition to providing consumer and entity borrower credit reports, CBS has future plans to work with MinLaw and the Registry of Moneylenders to introduce value-added services such as credit monitoring services and industry data analysis reports for licensed moneylenders to improve competitiveness and maximise the efficiency of their services."
CAS president Peter Tan said the association is "elated and privileged" to work with CBS on the MLCB, adding: "It is heartening to note that CBS is very committed to the betterment of the moneylending industry and that plans to roll out value-added services are in the pipeline. This will indeed augur well for our collaboration."
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