CREDIT REFERENCE BUREAU

CHAPTER 46:09
CREDIT REFERENCE BUREAU

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title

    2.    Interpretation

    3.    Application

PART II
LICENSING

    4.    Prohibition against operating credit reference bureau business without licence

    5.    Application for licence

    6.    Criteria for licensing

    7.    Refusal to grant licence

    8.    Revocation of licence

    9.    Expiry of licence

    10.    Renewal of licence

    11.    Register of credit reference bureaux

    12.    Operational requirements

PART III
OPERATIONS OF A CREDIT REFERENCE BUREAU

    13.    Collection of information

    13A.    Submission of information by financial institutions

    13B.    Financial institutions to update credit information on monthly basis

    13C.    Exemption from legal suit for submission of credit information

    14.    Dissemination of credit information

    14A.    Financial institutions to obtain credit history before issuing loans to customers

    15.    Data security and system integrity

    16.    Accuracy of data provided

    17.    Actions requiring prior approval

    18.    Prohibition of access for direct marketing

    19.    Submission of information to Registrar

    20.    Inspection by the Registrar

    21.    Retention of data

    22.    Fees

    23.    Rights of account holders

    24.    Illegal or inaccurate information

    25.    Claim against information providers

    26.    Claims and enquiries department

    27.    Information requirement

    28.    Warning and revocation of licence for non-compliance

    29.    Immunity of credit reference bureau, etc.

PART IV
WINDING-UP

    30.    Approval of winding-up

PART V
MISCELLANEOUS PROVISIONS

    31.    Offences relating to information, etc.

    32.    General offences and penalties

    33.    Regulations

    34.    Directives, guidelines and instructions

18 of 2010
6 of 2016
G.N. 13/2010

An Act to provide for the regulation and supervision of credit reference bureau business and to make provision for matters connected therewith or incidental thereto

PART I
PRELIMINARY

1.    Short title

    This Act may be cited as the Credit Reference Bureau Act.

2.    Interpretation

    (1) In this Act, unless the context otherwise requires—

    “account holder” means any person whose credit information is administered by a credit reference bureau;

    “credit facility” includes financing by means of loans, overdrafts, credit cards, factoring, leasing, hire purchase, accepting of trade and other bills, discounting of such bills and notes, the opening or confirming of documentary credit, the issue of letters of standby credit, guarantee or surety, the undertaking to pay on account of another person, and such other similar undertakings as may be prescribed by the Registrar from time to time;

    “credit reference bureau” means a company that allows users to exchange information on their clients’ repayment history and current debt profiles and which compiles a database that collects, stores, consolidates and processes information related to credit history of persons;

    “credit reference bureau business” means the business of compiling and processing credit information and disseminating credit information among users for their businesses;

    “credit information” means the history of a person with regard to credit and financial obligations that a credit reference bureau may collect pursuant to this Act;

    “database” means a set of information administered by a credit reference bureau;

    “financial services law” has the meaning ascribed to it in the Financial Services Act and includes this Act;

    “information provider” means an institution or any person required under the Act or as prescribed by the Minister pursuant to section 13 to submit credit information or data to a credit reference bureau;

    “person” includes any company or association or body of persons, corporate or unincorporated;

    “Registrar” means the Registrar of Financial Institutions appointed under the Financial Services Act;

    “Reserve Bank” means the Reserve Bank of Malawi established under the Reserve Bank of Malawi Act;

    “user” means any financial institution entitled, or any person authorized, to access credit information from a credit reference bureau.

    (2) Subject to subsection (1) and except where a contrary intention appears, expressions used in this Act shall have the same respective meanings as in the Financial Services Act.

3.    Application

    This Act shall apply, in addition to the Financial Services Act, to all persons conducting credit reference bureau business except to the extent that such persons are exempted by the Registrar pursuant to his authority under the Financial Services Act.

PART II
LICENSING

4.    Prohibition against operating credit reference bureau business without licence

    (1) No person shall conduct credit reference bureau business unless he is licensed as a credit reference bureau under the Financial Services Act.

    (2) No person, other than a limited liability company, shall be licensed as a credit reference bureau.

5.    Application for licence

    (1) An applicant for a licence to operate a credit reference bureau shall submit an application in writing in a form prescribed by the Registrar under the Financial Services Act, and containing such information as the Registrar may specify.

    (2) An application…