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Jamaica’s Fair Trading Commission, FTC, is recommending “urgent reform” for the credit bureau sector, inclusive of credit information.
“Mandate reciprocal data-exchange contracts,” the FTC urged in its now completed report the credit bureau system released on June 30.
The report highlighted systemic issues across the industry, including limited competition, poor data-sharing practices, and the exclusion of vulnerable borrowers from formal credit access.
Central to its recommendations is the creation of a centralised credit information-sharing system, aimed at breaking down what it calls “persistent barriers to competition” and “information asymmetry” that impair market efficiency.
The new report builds on a preliminary assessment released in late 2024, and deepens the analysis of structural flaws within the industry.
As the FTC indicated, “Universal data-exchange contracts would promote competition in the credit reporting market by mitigating significant sources of market distortion: asymmetric information and strategic impediments to entry and expansion”.
The Bank of Jamaica, which regulates the credit bureaus sector, did not immediately respond to requests for comment.
The Commission also recommends expanding the scope of data collection to cover informal credit arrangements, such as hire-purchase agreements and traditional partner plans, to foster greater inclusiveness.
The sector has three licensed operators – Credit Information Services Limited, CRIF Information Bureau Jamaica Limited, and EveryData Jamaica Limited – but only CRIF and EveryData are actively issuing reports. Credit Information Services has not issued any credit reports since 2022, according to the FTC, which underscored the difficulties faced by smaller players in accessing critical data.
Consumer dissatisfaction
The report also cited a sharp increase in consumer dissatisfaction with service delivery.
Nearly 6,000 complaints were lodged in 2023, more than twice the number recorded in 2018. Most relate to errors in credit reports, slow dispute resolution, and documents that are difficult to interpret.
“This increase suggests growing consumer dissatisfaction with the accuracy and usability of credit reports,” the FTC noted.
Furthermore, the report underscored the continued exclusion of low-income and informal borrowers. Because many credit bureaus don’t capture data on alternative lending arrangements, visibility into these borrowers’ financial behaviours remains limited and reinforces barriers to formal credit access.
The credit bureau system is just over a decade old, having come into existence with the passage of the Credit Reporting Act in 2010. The first credit bureau was launched in 2013.
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