The Central Bank of Barbados (CBB) has been asked to intervene in a contentious credit-reporting dispute involving a credit bureau and an anonymous customer, raising concerns about access to the country’s new Fair Credit Reporting Act (FCRA) and the functioning of its dispute mechanism, Barbados TODAY can reveal.
The irate customer, who filed a formal complaint with the Central Bank — the regulator under the new law — asked to remain anonymous. He is “vehemently” questioning the accuracy of his “adverse” credit score by EveryData (Barbados) Limited, which he contends is affecting his credit in the short to medium term by preventing him “from doing business in a way that [he] should be able to in Barbados”.
Expressing frustration and disappointment, he is accusing EveryData of failing to explain how it arrived at the significantly low credit score on his file, although, as he claimed, information was provided to show there were problems with the reporting.
In his complaint to the Central Bank, the professional said that “communication with the company has ceased”.
He told Barbados TODAY: “Information on specific agreements that should be included in any scoring is not. That’s the crux of it. Plus, the bureau has been refusing to provide information which the law says the data subject is entitled to.
“The question is one of access to the FCRA which we cannot have because of the position of the CBB. So, what’s the sense in Parliament passing the legislation four years ago, if the public cannot access the mechanisms contained in it for their protection?” he questioned.
“These problems all emanated from the period of the COVID-19 pandemic. And so, while we’ve been able to recover, get back to work, business has been okay, and been able to put ourselves back in a position with help from various folks, we are now back in a position where we are back on our feet, all except for the credit-bureau issue because they are not considering certain things. So, the only thing really that’s holding us back and keeping us in the pandemic era, is this unfair treatment of not being able to have the credit file reflect what it should . . .”
The customer said he felt “frustrated, extremely disappointed and a bit angry with the lack of due process over the last number of years” to rectify the issue. He also said his family felt as if the Central Bank was leaning more in favour of the bureau.
The customer plans to draw the dispute to the attention of the Ministry of Finance, he added.
Although the Fair Credit Reporting Act has been in place since 2022, the Central Bank, which, under the legislation, is responsible for licensing credit bureaus, has acknowledged that the operational framework is still not yet in place for it to do so.
According to documentation that Barbados TODAY has seen, this was discovered by the customer when the Central Bank responded to his request for intervention in resolving the dispute.
In a letter he said: “Given the continuing harm caused by the lack of fair reporting and omission of information, we respectfully request your office urgently convene a meeting between the involved parties. Without your intervention and clear direction as the regulator, it does not appear this matter will be resolved fairly or in a timely manner.”
In reply, the Central Bank’s Supervisory Department acknowledged receipt of the customer’s “email in relation to the dispute related to the accuracy of the information contained within your credit report”.
It said: “In that regard, please note that while the Fair Credit Reporting Act (FCRA) was finalised, the Central Bank of Barbados is in the process of finalising the operational framework needed to support the FCRA, including the licensing and oversight of credit bureaus, credit information providers and credit reporting activities.
“Consequently, we are not positioned to intervene in the resolution of this dispute, and you should continue to follow up with EveryData via its dispute mechanism. Feel free to update the Bank as you engage with EveryData as this would aid us in any engagement with the entity when the operational framework has been established.
“In addition, we note the continued efforts to restructure your debt with [the lender] based on the communication provided, and advise that you continue working with them to resolve your delinquency.”
When Barbados TODAY reached EveryData for comment, Chief Executive Officer Jason Martindale said in a statement that “consumers dissatisfied with any outcome are advised of their statutory right to escalate the matter to the Central Bank of Barbados for independent review”.
But the customer said he is left in no-man’s land because the regulator has already informed him it is not in a position to adjudicate his dispute with the credit bureau. Barbados TODAY has learned that the Fair Credit Reporting Act, which provides for a tribunal to hear disputes of this nature but has not been set up.
Martindale went on to defend his company’s reputation by contending that it is an authorised service provider to financial institutions under the Credit Bureau Code of Conduct established by the Barbados Bankers Association in 2019.
He said: “Since commencing operations in June 2019, EveryData Barbados has functioned with the full knowledge of the Central Bank of Barbados, which is responsible for implementing the Fair Credit Reporting Act (FCRA). While the Central Bank finalises the licensing framework, EveryData Barbados continues to operate transparently and lawfully under the transitional arrangements.”
The CEO added: “EveryData Barbados’ collection, processing, storing and sharing of credit information is conducted strictly for legitimate credit-reporting purposes under contractual agreements with regulated financial institutions. These activities are in accordance with the provisions of the FCRA, which emphasises fairness, accuracy, consumer rights, and redress; as well as the Data Protection Act (DPA), which mandates lawful, transparent, and secure handling of personal data.
“Consistent with the FCRA, EveryData Barbados provides consumers with access to their credit reports, an explanation of the key factors influencing their credit score, and a clear process for disputing or correcting any inaccuracies. Consumers dissatisfied with any outcome are advised of their statutory right to escalate the matter to the Central Bank of Barbados for independent review.”
Martindale said EveryData Barbados has also implemented all core data-protection principles defined in the Data Protection Act, including lawfulness, fairness, transparency, accuracy, purpose limitation, and data-security safeguards and has appointed a Data Protection Officer while aligning its practices with ISO 27001 international standards.
The Central Bank confirmed to Barbados TODAY that it is finalising the framework to license credit bureaux in Barbados, while stoutly defending EveryData’s legal status and its service to the country.
In a statement, it said: “Credit bureaus continue to operate legally in Barbados as the Central Bank of Barbados finalises the regulatory framework for their licensing. Credit bureaus have provided valuable services to financial institutions in Barbados for many years, playing an important role in the credit assessment process.”
It noted that the Fair Credit Reporting Act establishing the formal regulatory framework for credit bureau operations has been proclaimed and is now in force.
The regulator said: “The Act includes provisions for a transition period, allowing existing credit bureaus to continue their operations while applying for formal licensing from the Central Bank of Barbados. This approach ensures continuity of essential credit reporting services while the regulatory framework is being implemented.”
“The Central Bank has been actively engaged in public consultation and has completed extensive research on international best practices. The Bank is currently finalising the necessary documentation and procedures to facilitate the licensing process for existing bureaus. This measured approach demonstrates our commitment to both protecting consumers and the financial system; as well as ensuring the continued availability of credit information services that support responsible lending.”
It continued: “Credit bureaus and financial institutions have been engaging with the Central Bank as the licensing framework moves toward publication by the end of November.”
But, a reading of the act regarding the transition provision raises questions about the timing allowed for that transition.
Section 46(1) of the FCRA permits a credit bureau to continue carrying on business after the law came in force, “but shall within six months after the commencement of this Act, make application to the Central Bank under section 5 for the grant of a licence to carry on the business of a credit bureau”.
The law was passed in December 2021 and proclaimed in April or May 2022. Given that since the six-month grace period has passed and the Central Bank is still not in a position to license credit bureaux, the customer expressed concern that EveryData has been operating without a licence for close to three years.
The FCRA states that “where a person fails to comply with the provisions of subsection (1), the Central Bank shall order that person to cease its business forthwith”.
emmanueljoseph@barbadostoday.bb
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