Central Credit Register (CCR)

The CCR is long overdue and should allow for more accurate pricing of credit risk.

I wouldn't expect it to be up and running before Q1 2018.
 
Would presume the ICB will disappear. Would be very concerned as to the workings of this, so much personal data with one body is a target for hackers not to mention misuse by the lenders.
 
How would you envisage lenders and/or the Government mis-using a central register of loan data?

Genuine question.

Bear in mind that the Central Bank already has this data in aggregate form.
 
Collecting the data and reporting it out to lenders is one thing, but what stops them from than creating a scoring model that also takes the other data into consideration they have like my day to day spending (which they track as I use cards) combined with my accurate income (which they have from Revenue) plus the data from other sources (like HSE) all under the "protecting consumers" mantra.

Several of the Government departments can't even comply with basic regulations like SEPA due to outdated IT systems. Our data protection commissioner is a joke who only goes after companies if they are forced to. Do I really trust that government is keeping sensitive data like that secure and won't share it with other departments? Nope.

Our government is already tracking massive financial data about individuals and now they start reporting data they collect by law with private companies. What stops them from sneaking in more legislation to share even more of their data.
 
I would assume the whole point of the register is to allow for the creation of more accurate credit ratings. I would have thought that was a good thing as it allows for more accurate pricing of credit risk.

I don't really understand your other points.
 
How does this differ from the ICB? What is the reason behind apparently replacing the ICB ?
 
The CCR will be more comprehensive - not all lenders are members of the ICB.

I suspect there was also some nervousness about that level of sensitive data being handled by a private organisation.
 
Interesting. Like all government interventions in the market it will have unintended consequences. It will make bank loans more difficult to get for people that have had issues in the past. Today if you apply for a bank loan, the bank knows almost nothing about any dealings you may have with other banks. With this if you have any issues with other banks it will be apparent to any other bank.

I see that money lenders will also have to provide info. At present they are not members of ICB. I expect that anyone who has had a loan with a moneylender will be cut off from bank borrowings.
 
It's hardly a market intervention!

If the effect of the CCR is to restrict borrowers with bad credit ratings from getting into further unsustainable debt that is surely a good thing. Remember what happened in 2008/09?

I would point out that MABs are very much in favour of the new CCR.
 
What about people who had issues in the past due to loss if job etc.? That are now back at work and have paid/settled debts that may have been in arrears? Does the 5 year rule still apply?
 
Sarenco said:
If the effect of the CCR is to restrict borrowers with bad credit ratings from getting into further unsustainable debt that is surely a good thing. Remember what happened in 2008/09?
Click to expand...

Yes, banks threw out money to borrowers hand over fist with the blessing of the Regulator, Government and Central Bank. They brought this country to it's knees. They did what they could to lash out the shillings. 100% mortgages, 7 times income multiples, gave 5 year fixed rates to ensure borrowers would pass stress tests etc. Of course when it all goes bellies up it's Johnny and Mary who end up being tarnished for 5 years. Patrick Neary's reprimand for overseeing the biggest financial crash in Irish history was to walk of into the sunset with a lump sum of €630k and a €143k per annum pension.
 
Wouldn't it be a good idea to do everything possible to avoid a repeat of that disaster?

A lot of people will, frankly, never fully recover from the impact of the credit bubble/collapse. Never mind 5 years...
 
Anyone know if membership and participation of the CCR is compulsory, for all lending institutions ?

I am thinking specifically of the "non bank" lenders which have sprung up in recent years, or other licensed money lenders (i.e. Provident etc.)

Personally, I think it's essential that every possible lending / credit institution is on this new system, in order for it to deliver for us all.
 
Yep, it will be obligatory for every "credit information provider" to supply the designated personal and credit information to the Central Bank for inclusion on the CCR.

“Credit information provider” is very broadly defined to include -


(a) a regulated financial services provider,

(b) NAMA,

(c) a local authority, or

(d) any person not within paragraphs (a) to (c) who provides credit, other than—


(i) the Bank (ie the Central Bank) or the central bank of any country or territory other than the State,

or

(ii) a pawnbroker, within the meaning of the Pawnbrokers Act 1964.
 
Sarenco said:
Wouldn't it be a good idea to do everything possible to avoid a repeat of that disaster?

A lot of people will, frankly, never fully recover from the impact of the credit bubble/collapse. Never mind 5 years...
Click to expand...

The more I look at the present situation, the more I wonder if the boom was that much of a disaster. We built nearly one third of our entire housing stock. We are building nothing now, is that really better ?
 
Well, the bursting of the credit bubble decimated household balance sheets, ultimately bankrupted the State and gave rise to years of hardship and austerity for large swathes of our population.

I'd certainly call that a disaster.
 
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