THE CREDIT Information Corp. (CIC) will adopt a wholesale pricing system in August in which wholesale rates will be charged on credit reports requested by financial institutions.
Under the new program approved by the Securities and Exchange Commission (SEC), credit report investigations will have a wholesale price of P10 each when financial institutions pre-purchase one million reports per year, CIC said in a statement on Saturday. The retail price is P15 for all other attempts to access the CIC database.
“The new pricing system is intended to incentivize entities to access and increase the volume consumption of CIC’s core credit reports while ensuring an improved revenue stream to support operations and improve service quality,” said said Ben Joshua A. Baltazar, chairman and chief executive of CIC proposing the scheme to the bench-sitting SEC.
The wholesale price regime will come into effect between August and the end of January.
P10’s current introductory price per credit application is in effect until July 31. This award is offered for both Accessing Entities and CIC Special Accessing Entities (SAEs).
Basic credit reports expire 18 months from the date of purchase.
Through this new program, CIC will also implement a âno hit, no payâ policy in which financial institutions will not be billed for affected individuals with no credit history.
Mr Baltazar said CIC is also considering developing a service that will certify that a subject has no credit history, which will be beneficial for people new to borrowing, including recent graduates and young professionals.
âIt’s normal for newcomers to credit to get a boost when they are assessed for their creditworthiness when they apply for a loan or other financial services for the first time,â Baltazar said.
Financial institutions will still have the option of accessing credit rating services through CASs such as CIBI Information, Inc., CRIF Philippines and TransUnion Information Solutions. Consumer credit scores can be accessed directly through CIBI Information, Inc.’s myScore web portal.
CIC has 603 submitting and 117 acceding entities which include large universal and commercial banks, rural and savings banks, microfinance institutions, and loan and finance companies. – Luz Wendy T. Noble