GMA Signs RA 9510 Credit Information Act

GMA signs Republic Act 9510 or the Credit Information Act which was then certified urgent by Malacanang a week before November. RA 9510 is said to create a centralize credit information system which in its absence would be deterrent to the financial systems development. The establishment of the centralize credit information system is expected to improve the availability of credit, scale interest rates to a competitive level, and reduced dependence on excessive physical collateral to secure credit facilities.

However the above claims are contested or commented for some flaws by others to only impair and slowdown capital flow in the market for a number of reasons. Heres some:

1. Will the bank be willing to disclose their hardearned blue chip debtor? Its the law do they have a choice?
2. It is design to reduce the risk of defaults, but is it absolute?
3. Officials predilection to manipulate records is likely possible.
4. We only have Central Credit Information Corp. (CCIC). What if politics come into play? We have one here in the Philippines while the US have 3 companies namely; Experian, TransUnion, and Equifax.
   

The Senate Bill 62 is the counterpart bill of RA 9510 and is the only copy I happened to locate through the Senate website. It's not the final bill but it will give you the idea of what RA 9510 is.

I have save a copy and tried to upload it but to no avail I wasn't successful. If you want a copy of SB No. 62 send me email and I'll send you one.