GUYANA’s top Credit Union and several others are failing to meet their mandate, by law, to provide their credit information to the licensed Credit Bureau to facilitate responsible lending and credit loss reduction.
This is according to the Chief Executive Officer (CEO), Judy Semple-Joseph of Guyana’s Credit Bureau, Creditinfo and Manager of Sales and Business Development at the agency, David Falconer.

They revealed this during a press conference on Monday as they spoke about the positive developments arising from their database, designed to provide credit entities with the credit reports of borrowers.

The agency revealed a startling figure that out of all the credit unions in Guyana, only 2 are subscribed to Creditinfo.

This reality exists not for a lack of trying, said Falconer, who confirmed that all local credit unions had been engaged on the matter of their responsibility as well as the benefits they stand to gain in return.

“We’ve engaged every single credit union in the sector…we have targeted our outreach to the National Credit Union League and through them we have had innumerable meetings with, presentations and engagements with, every single credit union in the sector,” he said.
Meanwhile, the CEO referred to the matter as a “sore point” stating that the Creditinfo’s engagement with the credit unions dates back to about three years ago or even earlier.
“We have been working to get the credit unions on board, we have been jumping through hoops…it is absolutely necessary for the larger credit unions to be affiliated with CreditInfo. It is critical,” she stressed.

IT’S A PROCESS
However, the agency’s approach to the issue has not been a domineering one but, rather, a method of providing sensitisation to the unions about the benefits of their involvement.
“It’s a process that is involved. Our strategy was to start with the bigger lenders like the banks and we’re coming down. It’s a process of outreach and engagement in bringing people on board. Some are more difficult than others to bring on board. Even though it is mandated by law, there is a process and it’s quite a task in some instances to get these institutions to sign on,” Semple-Joseph told the media.

This approach is also being taken as the credit bureau is obligated to ensure that it has a sufficient number of subscribers to ensure a more comprehensive database.
Adding clarity, Falconer said: “Our policy is not to go with a big stick and say ‘you must do this’. We prefer to have you see the benefit and come on board voluntarily, because that is no way to start a relationship with anybody who you will have a relationship with literally forever.”

At the same time, the CEO warned about the advantages that can escape credit union users should the management continue to fail to comply.
“Those groups of borrowers that are associated with credit unions are missing out on the benefits of their association or their credit profiles within that credit union. They’re missing out on improvements on their credit scores because their information is not within CreditInfo’s database,” she said.

Earlier in the press conference, the representatives had told of the agency’s plan to roll out a new software application by next year which will see Guyanese having access to their credit scores from their mobile devices.

“We certainly would welcome the GPSC on board. We’re continuing our engagements with that body and now with the committee that has taken over, we believe that we can be an integral part of that union’s future,” Falconer later said, adding:

“We recognise how important credit unions are; financially speaking, credit unions enjoy the best arrangement with regards to their relationship with this credit union. We have bent over backwards to ensure that it’s not a burden for the union or their borrowers to participate in initiative.”

He was also keen to note that it is not simply a case of unwillingness for all credit unions, as smaller unions face the challenge of data storage which hinders their process of providing the needed information to the bureau.
Guyana has been leading the way in terms of Credit Reporting Legislation and, in the region, the Caribbean Community [CARICOM] is moving towards the development of a unified model to which Guyana’s legislation is being used as a guide.

Meanwhile, as a part of its sensitisation programme, CreditInfo has planned several outreaches in locations in Berbice, Demerara and Essequibo to create greater awareness about how Guyana can improve its credit sector.