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Credit checks with credit bureau

Banking (Credit Card and Charge Card) Regulations 2013

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—(1) Subject to regulation 23A(1), a card issuer shall conduct comprehensive checks with at least one licensed credit bureau for the purpose of assessing the credit‑worthiness of —(a)an individual, prior to issuing a credit card or charge card (other than a credit card or charge card referred to in regulation 10(2)) to that individual;(b)a cardholder, prior to increasing the aggregate credit limit granted by the card issuer to that cardholder, unless comprehensive checks with at least one licensed credit bureau had already been conducted for the purpose of assessing the credit-worthiness of that cardholder not more than one month prior to increasing the aggregate credit limit; and(c)a cardholder, upon receiving any information from any person that calls into question the credit-worthiness of that cardholder, unless checks with at least one licensed credit bureau had already been conducted for the purpose of assessing the credit-worthiness of that cardholder not more than 3 months prior to the information being received.(2) In addition to the requirements in paragraph (1), where the credit card or charge card referred to in that paragraph is a guaranteed credit card or guaranteed charge card (other than a guaranteed credit card or guaranteed charge card referred to in regulation 10(2)), the card issuer shall also conduct comprehensive checks with at least one licensed credit bureau for the purpose of assessing the credit-worthiness of the guarantor or the Singapore guarantor of the card in the following circumstances:(a)prior to issuing that card;(b)prior to increasing the credit limit of that card, unless comprehensive checks with at least one licensed credit bureau had already been conducted for the purpose of assessing the credit-worthiness of the guarantor or Singapore guarantor, as the case may be, not more than one month prior to increasing the credit limit of that card;(c)upon receiving any information from any person that calls into question the credit-worthiness of the cardholder, guarantor or Singapore guarantor, unless checks with at least one licensed credit bureau had already been conducted for the purpose of assessing the credit-worthiness of the guarantor or Singapore guarantor, as the case may be, not more than 3 months prior to the information being received.(3) In the case of a guaranteed credit card or guaranteed charge card issued pursuant to regulation 8(2)(b)(iv) to an individual, a card issuer shall conduct comprehensive checks with at least one licensed credit bureau for the purpose of assessing the credit-worthiness of the cardholder in the event that the Singapore guarantor is not permitted, pursuant to regulation 16 or 17, to charge further amounts to any credit card or charge card issued by that card issuer to the guarantor.(4) For the purposes of paragraphs (1), (2) and (3) and regulations 16(4)(c) and 17(6)(b)(ii), a card issuer shall in relation to an individual, a cardholder, a guarantor or a Singapore guarantor, as the case may be, review all of the following in its comprehensive checks with at least one licensed credit bureau:(a)secured and unsecured amounts outstanding on all credit cards, charge cards and non-card credit facilities reported to the licensed credit bureau;(b)secured and unsecured credit limits of all credit cards, charge cards and non-card credit facilities reported to the licensed credit bureau;(c)the payment status of all credit cards, charge cards and non‑card credit facilities reported to the licensed credit bureau.(5) For the purpose of paragraph (4) —(a)data on amounts outstanding and credit limits —(i)shall exclude data concerning —(A)any loan to a sole proprietor or partner of a partnership, for a business purpose;(B)fully secured credit cards and charge cards; and(C)non-card credit facilities that are fully secured by a deposit or deposits; and(ii)may exclude data concerning any corporate card or business card; and(b)data on payment status —(i)shall exclude data concerning any loan to a sole proprietor or partner of a partnership, for a business purpose; and(ii)may exclude data concerning any corporate card or business card.(6) For the purposes of paragraphs (1)(c) and (3), a card issuer need not conduct comprehensive checks if the card issuer has ceased to permit or will not permit any further amounts (other than the specified amounts) to be charged to any credit card or charge card issued, or to be drawn down on any fully unsecured or partially secured non-card credit facility granted, to that cardholder by the card issuer, until the amounts outstanding on all his credit cards and charge cards issued, and fully unsecured or partially secured non‑card credit facilities granted, by the card issuer to that cardholder are paid in full.(7) For the purpose of paragraph (2)(c), a card issuer need not conduct comprehensive checks if the card issuer has ceased to permit or will not permit any further amounts (other than the specified amounts) to be charged to any credit card or charge card issued, or to be drawn down on any fully unsecured or partially secured non‑card credit facility granted, by the card issuer to the cardholder and guaranteed by that guarantor, until the amounts outstanding on all credit cards and charge cards issued, and fully unsecured or partially secured non-card credit facilities granted, by the card issuer to the same cardholder and guaranteed by that same guarantor are paid in full.(8) For the purposes of paragraphs (6) and (7), the specified amounts are the following:(a)any fees, interest and charges (including late payment charges) relating to the use of any credit card or charge card issued, or any fully unsecured or partially secured non-card credit facility granted, by the card issuer;(b)any outstanding amounts transferred by the card issuer —(i)in the case of paragraph (6), from any credit card or charge card already issued, or any fully unsecured or partially secured non-card credit facility already granted, by the card issuer to the cardholder, to another credit card or charge card the card issuer has issued or will issue, or any fully unsecured or partially secured non-card credit facility the card issuer has granted or will grant, to the same cardholder; and(ii)in the case of paragraph (7), from any credit card or charge card issued, or any fully unsecured or partially secured non-card credit facility granted, to the cardholder by the card issuer and that is guaranteed by that guarantor, to another credit card or charge card the card issuer has issued or will issue, or any fully unsecured or partially secured non-card credit facility the card issuer has granted or will grant, to the same cardholder and that is guaranteed by that same guarantor.(9) For the purposes of paragraphs (1)(c) and (2)(c), a card issuer need not conduct the comprehensive checks if the person providing the information refuses to identify himself to the card issuer, even after the card issuer undertakes to the person that his identity will be kept confidential to any extent required by the person.(10) Any card issuer which contravenes paragraph (1), (2), (3) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.(11) Nothing in this regulation shall require a card issuer to conduct checks with any credit bureau in relation to a holder of a supplementary credit card or supplementary charge card in his capacity as a supplementary cardholder.(12) For the avoidance of doubt, nothing in these Regulations shall require or permit the disclosure of any information to one or more credit bureaus in contravention of section 47 of the Act.

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