Central Bank to address privacy concerns on loans register

A register collating all significant loans by banks to individuals is on course to be up and running by the end of 2017, as the Central Bank works to address privacy concerns.

The register will bring together, under a single database, credit advanced to individuals by banks and credit unions. Borrowers will also be able to check their credit scores.

The idea is designed to promote responsible lending and reduce the concentration of risk.

The Central Bank yesterday published its feedback report to responses from banks, consumer bodies, and individuals on proposals for the register and effectively set down a timetable for its introduction.

Separately, minutes of a Central Bank Commission meeting in December — published for the first time — showed that the commission stressed the importance of data protection when the register is put into place.

The register will hold details of loans of €500 or more.

The Central Bank will collect a small amount of information at the time a loan application is made to monitor whether the register “is being accessed for a proper purpose”.

In an initial stage, lenders will supply details of loans backdated to the end of September 2016, by the end of March 2017.

Borrowers will be able to request their credit scores from March 2017, with lenders required to use the register before advancing loans in excess of €2,000 from the end of 2017.

In its feedback response document, the Central Bank said some respondents were concerned that advice about using data identifying individual borrowers — including PPSN, tax, and social welfare numbers — should be clear and agreed beforehand with agencies such as the Data Protection Commissioner.

The Central Bank said the collection of PPSNs “will be subject to strict controls”. It is also undertaking a privacy assessment study.

“The Central Bank will have significant data-protection obligations in respect of personal information held on the central credit register,” it said.

“The Central Bank will continue to engage with the Office of the Data Protection Commissioner as it manages its responsibilities in this regard, both in the design and execution and ongoing operation of the central credit register.”

It said fees and levies will cover all costs of the register, but that the structure of the charges will not be set in stone.

In the December minutes, new Central Bank governor Philip Lane “noted the importance” of the register “and in particular the public communications aspects which would be necessary as it evolved”.