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REPUBLIC ACT 9510

Guide to the Credit Information System Act (CISA)
(RA 9510 Implementing Rules and Regulations)
 Table of Contents

Credit and the Economy 7

How can one have access to credit 7
The CIS Ecosystem 8
The consolidated basic credit report 9
The credit information report 10
Mandate 10

Guide to the Credit Information System Act (CISA) 11

(RA 9510 and its Implementing
Rules and Regulations)

Implementing rules and regulations of the 26

Credit Information System (CISA)
Republic Act No. 9510

Introduction to Credit Information Corporation 55

CIC Circular 01 Series of 2015 59

CIC Circular 02 Series of 2015 69

Submitting Entities Information Sheet (SEIS) 77

 Preface

The Republic Act No. 9510, otherwise known as the Credit

Information Systems Act (CISA) of 2008 prescribed the powers
and functions of the Credit Information Corporation (CIC)
whose primary mandate is to establish a comprehensive and
centralized credit information system for the collection and
dissemination of fair and accurate information relevant to, or
arising from, credit and credit-related activities of all entities
participating in the financial system.
RA 9510 provides for the creation of a Corporation
primarily intended to be a central registry or repository of credit
information and shall provide access to reliable, standardized
information on credit history and financial condition of
borrowers, whether individuals or corporations, in support of,
and essential to, the development of the Philippine financial
market.
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 Guide to the:
Credit Information System Act (CISA)
(RA 9510 and its Implementing
Rules and Regulations)
 Republic of the Philippines

Congress of the Philippines

Metro Manila

Fourteenth Congress

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eight day of

July, two thousand eight.

Republic Act No. 9510 - October 31, 2008

AN ACT ESTABLISHING THE CREDIT INFORMATION SYSTEM AND

FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:

Section 1. Title. - This Act shall be known as the “Credit Information

System Act.”

Section 2. Declaration of Policy. - The State recognizes the need

to establish a comprehensive and centralized credit information system
for the collection and dissemination of fair and accurate information
relevant to, or arising from, credit and credit-related activities of all entities
participating in the financial system. A credit information system will
directly address the need for reliable credit information concerning the
credit standing and track record of borrowers.

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 The operations and services of a credit information system can be
expected to: greatly improve the overall availability of credit especially
to micro, small and medium-scale enterprises; provide mechanisms to
make credit more cost-effective; and reduce the excessive dependence
on collateral to secure credit facilities.

The State shall endeavor to have credit information provided at the

least cost to all participants and shall ensure the protection of consumer
rights and the existence of fair competition in the industry at all times.

An efficient credit information system will also enable financial

institutions to reduce their over-all credit risk, contributing to a healthier
and more stable financial system.

Section 3. Definition of Terms. - For purposes of this Act:

(a) “Accessing Entity” refers to any submitting entity or any other

entity authorized by the Corporation to access basic credit data from the
Corporation.

(b) “Basic Credit Data” refers to positive and negative information

provided by a borrower to a submitting entity in connection with the
application for and availment of a credit facility and any information on the
borrower’s creditworthiness in the possession of the submitting entity and
other factual and objective information related or relevant thereto in the
submitting entity’s data files or that of other sources of information: Provided,
that in the absence of a written waiver duly accomplished by the borrower,
basic credit data shall exclude confidential information on bank deposits
and/or clients funds under Republic Act No. 1405 (Law on Secrecy of
Bank Deposits), Republic Act No. 6426 (The Foreign Currency Deposit
Act), Republic Act No. 8791 (The General Banking Law of 2000), Republic
Act No. 9160 (Anti-Money Laundering Law) and their amendatory laws.

(c) “Borrower” refers to a natural or juridical person, including any

local government unit (LGU), its subsidiaries and affiliates, that applies for
and/or avails of a credit facility.

(d) “BSP” refers to the Bangko Sentral ng Pilipinas, created under

Republic Act No.7653.

(e) “Corporation” refers to the Credit Information Corporation

established under Section 5 of this Act.

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 (f) “Credit facility” refers to any loan, credit line, guarantee or any
other form of financial accommodation from a submitting entity: Provided,
That for purposes of this Act, deposits in banks shall not be considered a
credit facility extended by the depositor in favor of the bank.

(g) “Credit Rating” refers to an opinion regarding the creditworthiness

of a borrower or of an issuer of debt security, using an established and
defined ranking system.

(h) “Credit Report” refers to a summary of consolidated and evaluated

information on creditworthiness, credit standing, credit capacity, character
and general reputation of a borrower.

(i) “Government Lending Institutions” refers to existing and future

Government Financial Institutions (GFIs), Government-Owned and
Controlled Corporations (GOCCs) primarilly engaged in lending activities.

(j) “Negative Credit Information” refers to information/data concerning

the poor credit performance of borrowers such as, but not limited to,
defaults on loans, adverse court judgments relating to debts and reports
on bankruptcy, insolvency, petitions or orders on suspension of payments
and corporate rehabilitation.

(k) “Non-Accessing Entity” refers to an entity other than a Submitting

Entity, Special Accessing Entity or Borrower that is authorized by the
Corporation to access credit information from a Special Accessing Entity.

(l) “Outsource entity” refers to any accredited third party provider to

whom the Corporation may outsource the processing and consolidation of
basic credit data pertaining to a borrower or issuer of debt or convertible
securities under such qualifications, criteria and strict confidentiality
guidelines that the Corporation shall prescribe and duly publish.

(m) “Positive credit information” refers to information/data concerning

the credit performance of a borrower such as, but not limited to, information
on timely repayments or non-delinquency.

(n) “Relevant Government Agencies” refers to the Department of

Finance, Department of Trade and Industry, Bangko Sentral ng Pilipinas,
Insurance Commission and the Cooperative Development Authority.

(o) “SEC” refers to the Securities and Exchange Commission.

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 (p) “Special Accessing Entity” refers to a duly accredited private
corporation engaged primarily in the business of providing credit reports,
ratings and other similar credit information products and services.

(q) “Submitting Entity” refers to any entity that provides credit facilities
such as, but not limited to, banks, quasi-banks, trust entities, investment
houses, financing companies, cooperatives, nongovernmental, micro-
financing organizations, credit card companies, insurance companies and
government lending institutions.

Section 4. Establishment of the Credit Information System. - In

furtherance of the policy set forth in Section 2 of this Act, a credit information
system is hereby established.

(a) Banks, quasi-banks, their subsidiaries and affiliates, life insurance

companies, credit card companies and other entities that provide credit
facilities are required to submit basic credit data and updates thereon on a
regular basis to the Corporation.

(b) The Corporation may include other credit providers to be subject

to compulsory participation: Provided, That all other entities qualified to
be submitting entities may participate subject to their acceptance by the
Corporation: Provided, further, That, in all cases, participation under the
system shall be in accordance with such standards and rules that the SEC
in coordination with the relevant government agencies my prescribe.

(c) Participating submitting entities are required to submit to the

Corporation any negative and positive credit information that tends to
update and/or correct the credit status of borrowers. The Corporation shall
fix the time interval for such submission: Provided, That such interval shall
not be less than fifteen (15) working days but not more than thirty (30)
working days.

(d) The Corporation should regularly collect basic credit data of

borrowers at least on a quarterly basis to correct/update the basic credit
data of said borrowers.

(e) The Corporation may also access credit and other relevant
information from government offices, judicial and administrative tribunals,
prosecutorial agencies and other related offices, as well as pension plans
administered by the government.

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 (f) Each submitting entity shall notify its borrowers of the former’s
obligation to submit basic credit data to the Corporation and the disclosure
thereof to the Corporation, subject to the provisions of this Act and the
implementing rules and regulations.

(g) The Corporation is in turn authorized to release consolidated

basic credit data on the borrower, subject to the provisions of Section 6 of
this Act.

(h) The negative information on the borrower as contained in the credit

history files of borrowers should stay in the database of the Corporation
unless sooner corrected, for not more than three (3) years from and
after the date when the negative credit information was rectified through
payment or liquidation of the debt, or through settlement of debts through
compromise agreements or court decisions that exculpate the borrower
from liability. Negative information shall be corrected and updated within
fifteen (15) days from the time of payment, liquidation or settlement of
debts.
(i) Special Accessing Entities shall be accredited by the Corporation
in accordance with such standards and rules as the SEC in coordination
with the relevant government agencies, may prescribe.

(j) Special accessing entities shall be entitled access to the

Corporation’s pool of consolidated basic credit data, subject to the
provisions of Sections 6 and 7 of this Act and related implementing rules
and regulations.

(k) Special accessing entities are prohibited from releasing basic

credit data received from the Corporation or credit reports and credit
ratings derived from the basic credit data received from the Corporation,
to non-accessing entities unless the written consent or authorization has
been obtained from the Borrower: Provided,  however, That in case the
borrower is a local government unit (LGU) or its subsidiary or affiliate,
the special accessing entity may release credit information on the LGU,
its subsidiary or affiliate upon written request and payment of reasonable
fees by a constituent of the concerned LGU.

(l) Outsource Entities, which may process and consolidate basic

credit data, are absolutely prohibited from releasing such data received
from the Corporation other than to the Corporation itself.

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 (m) Accessing Entities shall hold strictly confidential any credit
information they receive from the Corporation.

(n) The borrower has the right to know the causes of refusal of the
application for credit facilities or services from a financial institution that
uses basic credit data as basis or ground for such a refusal.

(o) The borrower, for a reasonable fee, shall have, as a matter of

right, ready and immediate access to the credit information pertinent
to the borrower. In case of erroneous, incomplete or misleading credit
information, the subject borrower shall have the right to dispute the
erroneous, incomplete, outdated or misleading credit information before
the Corporation. The Corporation shall investigate and verify the disputed
information within five (5) working days from receipt of the complaint.
If its accuracy cannot be verified and cannot be proven, the disputed
information shall be deleted. The borrower and the accessing entities and
special accessing entities who have received such information shall be
informed of the corresponding correction or removal within five (5) working
days. The Corporation should use a simplified dispute resolution process
to fast track the settlement/resolution of disputed credit information. Denial
of these borrowers’ rights, without justifiable reason, shall entitle the
borrower to indemnity.

Section 5. Establishment of the Central Credit Information

Corporation. - There is hereby created a Corporation which shall be
known as the Credit Information Corporation, whose primary purpose
shall be to receive and consolidate basic credit data, to act as a central
registry or central repository of credit information, and to provide access to
reliable, standardized information on credit history and financial condition
of borrowers.

(a) The Corporation is hereby authorized to adopt, alter, and use a

corporate seal which shall be judicially noticed; to enter into contracts;
to incur liabilities; to lease or own real or personal property, and to sell
or otherwise dispose of the same; to sue and be sued; to compromise,
condone or release any liability and otherwise to do and perform any and
all things that may be necessary or proper to carry out the purposes of this
Act.
(b) The authorized capital stock of the Corporation shall be Five
Hundred Million Pesos (P500,000,000.00) which shall be divided into
common and preferred shares which shall be non-voting. The National

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Government shall own and hold sixty percent (60%) of the common
shares while the balance of forty percent (40%) shall be owned by and
held by qualified investors which shall be limited to industry associations
of banks, quasi-banks and other credit related associations including
associations of consumers. The amount of Seventy-five million pesos
(PhP75,000,000.00) shall be appropriated in the General Appropriations
Act for the subscription of common shares by the National Government
to represent its sixty percent (60%) equity share and the amount of Fifty
million pesos (PhP50,000,000.00) shall be subscribed and paid up by
such qualified investors in accordance with Section 5(d) hereof.

(c) The National Government may subscribe or purchase securities

or financial instrument that may be issued by the Corporation as a
supplement to capital.

(d) Equal equity participation in the Corporation shall be offered

and held by qualified private sector investors but in no case shall each
of the qualified investor represented by an association of banks, quasi-
banks and other credit-related associations including the associations of
consumers have more than ten percent (10%) each of the total common
shares issued by the Corporation.

(e) The SEC in coordination with relevant government agencies,

shall prescribe additional requirements for the establishment of the
Corporation, such as industry representation, capital structure, number
of independent directors, and the process for nominating directors, and
such other requirements to ensure consumer protection and free, fair and
healthy competition in the industry.

(f) The Chairman of the SEC shall be the Chairman of the Board of
Directors of the Corporation. Whenever the Chairman of the SEC is unable
to attend a meeting of the Board, he/she shall designate an Associate
Commissioner of the SEC to act as his/her alternate.

The powers and functions of the Corporation shall be exercised by

a board of directors composed of fifteen (15) members. The directors
representing the government shares shall be appointed by the President
of the Philippines.

(g) The directors and principal officers of the Corporation, shall be

qualified by the “fit and proper” rule for bank directors and officers. To
maintain the quality of management of the Corporation and afford better

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protection to the system and the public in general, the SEC in coordination
with the relevant government agencies, shall prescribe, pass upon and
review the qualifications and disqualifications of individuals elected or
appointed directors of the Corporation and disqualify those found unfit.
After due notice to the board of directors of the Corporation, the SEC may
disqualify, suspend or remove any director who commits or omits an act
which render him unfit for the position. In determining whether an individual
is fit and proper to hold the position of a director of the Corporation, due
regard shall be given to his integrity, experience, education, training and
competence.

The members of the Board of Directors must be Filipino citizens and at

least thirty (30) years of age. In addition, they shall be persons of good moral
character, of unquestionable integrity, of known probity, and have attained
competence in the fields of law, finance, economics, computer science
or information technology. In addition to the disqualifications imposed by
the Corporation Code, as amended, no person shall be nominated by the
national government if he has been connected directly with a banking
or financial institution as a director or officer, or has substantial interest
therein within three (3) years prior to his appointment.

(h) The Board of Directors may appoint such officers and employees
as are not otherwise provided for in this Act, define their duties, fix their
compensations and impose disciplinary sanctions upon such officers
and employees, for cause. The salaries and other compensation of the
officers and employees of the Corporation shall be exempt from the Salary
Standardization Law. Appointments in the Corporation, except to those
which are policy-determining, primarily confidential or highly technical in
nature, shall be made only according to the Civil Service Law.

(i) The Corporation shall acquire and use state-of-the-art technology

and facilities in its operations to ensure its continuing competence and
capability to provide updated negative and positive credit information; to
enable the Corporation to relay credit information electronically as well
as in writing to those authorized to have access to the credit information
system; and to insure accuracy of collected, stored and disseminated credit
information. The Corporation shall implement a borrower’s identification
system for the purpose of consolidating credit information.

(j) The provisions of any general or special law to the contrary

notwithstanding, the importation by the Corporation of all equipment,
hardware or software, as well as all other equipment needed for its

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operations shall be fully exempt from all customs duties and from all other
taxes, assessments and charges related to such importation.

(k) The Corporation shall have its principal place of business in Metro
Manila, but may maintain branches in such other places as the proper
conduct of its business may require.

(l) Any and all acquisition of goods and services by the Corporation
shall be subject to Procurement Laws.

(m) The national government shall continue to hold sixty percent

(60%) of the common shares for a period not to exceed five (5) years
from the date of commencement of operations of the Corporation. After
the said period, the national government shall dispose of at least twenty
percent (20%) of its stockholdings in the Corporation to qualified investors
which shall be limited to industry associations of banks, quasi-banks and
other credit-related associations, including associations of consumers.
The national government shall offer equal equity participation in the
Corporation to all qualified investors. When the ownership of the majority of
the common voting shares of the Corporation passes to private investors,
the stockholders shall cause the adoption and registration with the SEC
of the amended articles of incorporation within three (3) months from such
transfer of ownership.

Section 6. Confidentiality of Credit Information. - The Corporation,

the submitting entities, the accessing entities, the outsource entities, the
special accessing entities and the duly authorized non-accessing entities
shall hold the credit information under strict confidentiality and shall use the
same only for the declared purpose of establishing the creditworthiness of
the borrower. Outsource entities which may process and consolidate basic
credit data are absolutely prohibited from releasing such data received
from the Corporation other than to the Corporation.

The accreditation of an accessing entity, a special entity and/or an

outsource entity which violates the confidentiality of, or which misuses,
the credit information accessed from the Corporation, may be suspended
or revoked. Any entity which violates this section may be barred access
to the credit information system and penalized pursuant to Section 11 of
this Act.

The Corporation shall be authorized to release and disclose

consolidated basic credit data only to the Accessing Entities, the

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Special Accessing Entities, the Outsource Entities and Borrowers. Basic
Consolidated basic credit data released to Accessing Entities shall be
limited to those pertaining to existing Borrowers or Borrowers with pending
credit applications. Credit information shall not be released to entities other
than those enumerated under this Section except upon order of the court.

Section 7. Educational Campaign. - A continuing nationwide

educational campaign shall be developed and undertaken by the Corporation
to promote the benefits of a credit information system to the economy; to
create awareness on the rights of consumers/borrowers to access their
credit reports collected, stored and disseminated by the Corporation; to
disseminate the rights of the borrowers to dispute any incorrect/inaccurate
credit information in the database file of the Corporation; to familiarize
consumers of the procedure in collecting, storing and disseminating credit
information of borrowers by the Corporation; and to brief consumers of
other related information.

Section 8. Rules and Regulations. - For purposes of creating

a healthy balance between the need for reliable credit information and
safeguarding consumer protection, ensuring free and healthy competition
in the industry, the SEC, in coordination with relevant government agencies
and existing industry stakeholders, shall issue the implementing rules and
regulations (IRRs), which shall be reviewed, revised and approved by
the Oversight Committee to ensure consistency and compliance with the
provisions of this Act, embodying among others:

(a) The basic credit data shall be limited or confined in form and
content to an objective and factual information and shall exclude any
subjective information or opinion;

(b) Restrictions on the use and transfer of credit information;

(c) Rights of the borrowers to access their respective credit information

and to dispute the factual accuracy of such credit information;

(d) Requirements and standards for the establishment of the

Corporation including, but not limited to, ownership, industry representation,
independent directors and process of nomination of directors;

(e) Accreditation standards for submitting entities and special

accessing entities and non-accessing entities;

(f) Sanctions to be imposed by the Corporation on:

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 (i) The submitting entities for non-submission of reports and for
delayed and/or erroneous reporting;

(ii) Accessing entities, special accessing entities, outsource

entities and duly authorized non-accessing entities, for
breaches of the confidentiality of misuse of, the credit
information obtained from the credit information system; and

(iii) Violations of other applicable rules and regulations: Provided,

That these administrative sanctions shall be in the
form of fines in amounts as may be determined by the
Corporation but in no case to exceed Thirty thousand
pesos (PhP30,000.00) a day for each violation, taking into
consideration the attendant circumstances, such as the
nature and gravity of the violation or irregularity. Imposition
of administrative sanctions shall be without prejudice to any
criminal and other sanctions as may be applicable under this
Act and relevant laws;

(g) Suspension or cancellation of the rights of any Accessing

Entity or Special Accessing Entity to access Credit Information from
the Corporation; Provided, That the SEC in coordination with relevant
government agencies and existing industry stakeholders, may issue
subsequent regulations consistent with the IRR as approved by the
Congressional Oversight Committee.

In addition, the SEC may regulate access to the credit information

system as well as the fees that shall be collected by the Corporation from
the Accessing and Special Accessing Entities, taking into consideration
the policy of lowering the cost of credit, promoting fair competition, and the
need of the Corporation to employ state-of-the-art technology; and

(h) The basic credit data about a borrower shall be limited to credit
information existing on the date of the enactment of this Act and thereafter.

Section 9. Congressional Oversight Committee. - There is hereby

created a congressional oversight committee, composed of seven (7)
members from the Senate and seven (7) members from the House of
Representatives. The Members from the Senate shall be appointed by the
Senate President with at least three (3) Senators representing the minority.
The Members of the House of Representatives shall be appointed by the
Speaker with at least three (3) members representing the minority.

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 After the Oversight Committee approved the implementing rules
and regulations, it shall thereafter become functus officio, and therefore
cease to exist: Provided, That the Congress may revive the Congressional
Oversight Committee in case of a need for any major revision/s in the
implementing rules and regulations.

Section 10. Indemnity in Favor of the Corporation, its Officers and

Employees. - Unless the Corporation or any of its officers and employees
is found liable for any willful violation of this Act, bad faith, malice and/
or gross negligence, the Submitting Entities, Accessing Entities, Special
Accessing Entities, Outsource Entities and duly authorized non-accessing
entities shall hold the Corporation, its directors, officers and employees
free and harmless to the fullest extent permitted by law and shall indemnify
them from any and all liabilities, losses, claims, demands, damages,
deficiencies, costs and expenses of whatsoever kind and nature that
may arise in connection with the performance of their functions without
prejudice to any criminal liability under existing laws.

Section 11. Penalties. - Any person who willfully violates any of

the provisions of this Act or the rules and regulations promulgated by
the SEC in coordination with the relevant government agencies shall,
upon conviction, suffer a fine of not less than Fifty thousand pesos
(PhP50,000.00). nor more than One million pesos (PhP1,000,000.00) or
imprisonment of not less than one (1) year nor more than five (5) years, or
both, at the discretion of the court.

Section 12. Inviolable Nature of the Secrecy of Bank Deposits and/

or Client Funds. - Pursuant to Republic Act No. 1405 (Law on Secrecy
of Bank Deposits), Republic Act No. 6426 (The Foreign Currency Deposit
Act), Republic Act No. 8791 (The General Banking Law of 2000), Republic
Act No. 9160 (Anti-Money Laundering Law) and their amendatory laws,
nothing in this Act shall impair the secrecy of bank deposits and and/or
client funds and investments in government securities or funds.

Section 13. Annual Report. - The SEC shall submit an annual report
to Congress on the status of the implementation of this Act.

Section 14. Principal Government Agency. - The SEC shall

be the lead government agency to implement and enforce this Act. As
lead agency, the SEC shall consult and coordinate with other relevant
government agencies in the adoption of all rules and regulations for the

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full and effective implementation and enforecement of this Act, taking into
account the policy objectives contained in Section 2 hereof.

Section 15. Separability Clause. - Should any provision of this Act

or the application thereof to any person or circumstance be held invalid,
the other provisions or sections of this Act shall not be affected thereby.

Section 16. Repealing Clause. - This Act repeals Presidential

Decree No. 1941 in its entirety. All laws, decrees, executive orders, rules
and regulations or parts thereof which are inconsistent with this Act are
hereby repealed, amended or modified accordingly.

Section 17. Effectivity Clause. - This Act shall take effect fifteen (15)
days following its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved

(Sgd.) PROSPERO C. NOGRALES (Sgd.) MANNY VILLAR

Speaker of the House of President of the Senate
Representative

This Act which is a consolidation of Senate Bill No. 1881 and

House Bill No. 4260 was finally passed by the Senate and the House of
Representative on September 1, 2008.

(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES

Secretary General Secretary of the Senate
House of Representative

Approved: OCT 31, 2008

(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines

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 IMPLEMENTING RULES AND REGULATIONS OF THE CREDIT
INFORMATION SYSTEM ACT (CISA) (REPUBLIC ACT NO. 9510)

Pursuant to Section 8 of Republic Act No. 9510, An Act establishing

the Credit Information System Act, the following Implementing Rules and
Regulations are hereby promulgated.

RULE 1

Title

These Rules shall be referred to as the Implementing Rules and

Regulations of Republic Act No. 9510, otherwise known as the “Credit
Information System Act” or the CISA Rules.

RULE 2

Objectives

These Rules are promulgated consistent with the declared policy

of the State to address the need for a comprehensive, centralized and
reliable credit information system to (a) improve the overall availability
of credit especially to micro, small- and medium-scale enterprises, (b)
provide credit information at the least cost to all participants, (c) ensure
the protection of consumer rights and the existence of fair competition in
the industry at all times, (d) reduce overall credit risk thereby contributing
to a healthier and more stable financial system, and (e) provide credit
information at the least cost to all eligible participants.

The implementation and application of these Rules shall adhere as

closely as possible to the attainment of the foregoing policy objectives.

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 RULE 3

Definition of Terms

When used in this Rules and Regulations, the term —

(a) “Accessing Entity” refers to any submitting entity or any other

entity authorized by the Corporation to access basic credit data from the
Corporation.

(b) “Affiliate” refers to a corporation, not more than fifty percent (50)
but not less than ten percent (10%) of the outstanding voting stock of
which is directly or indirectly owned, controlled or held with power to vote
or under common control by an accessing entity, special accessing entity,
outsource entity, or a non-accessing entity or the Corporation.

(c) “Basic Credit Data” refers to positive and negative credit information
referred to in Rule 4 (4.3a) of these Rules, provided by a borrower to a
submitting entity in connection with an application for, and availment of,
a credit facility and any information on the borrower’s credit worthiness
in the possession of the submitting entity and other factual and objective
information related or relevant thereto in the submitting entity’s data files
or that of other sources of information: Provided, That in the absence of a
written waiver duly accomplished by the borrower, basic credit data shall
exclude confidential information on bank deposits and/or clients funds
under Republic Act No. 1405 (Law on Secrecy of Bank Deposits), Republic
Act No. 6426 (The Foreign Currency Deposit Act), Republic Act No. 8791
(The General Banking Law of 2000) and their respective amendatory laws.

(d) “Borrower” refers to a natural or juridical person, including any

Local Government Unit (LGU), its subsidiaries and affiliates, that applies
for and/or avails of a Credit Facility.

(e) “BSP” refers to the Bangko Sentral ng Pilipinas, created under

Republic Act No. 7653.

(f) “Corporation” refers to the Credit Information Corporation

established under Section 5 of this Act.

(g) “Credit Facility” refers to Loans, Credit Lines, Stand by LC, trust
receipts and any other facility that provides credit.

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 (h) “Credit Rating” refers to an opinion regarding the creditworthiness
of a borrower or of an issuer of debt security, using an established and
defined ranking system.

(i) “Credit Rating Agency” refers to a Securities and Exchange

Commission accredited juridical person or entity which issues an opinion
regarding the creditworthiness of a borrower or of an issuer of debt security,
using an established and defined ranking system, and accredited by the
Commission.

(j) “Credit Report” refers to a summary of consolidated and evaluated

nformation on creditworthiness, credit standing, credit capacity, character
and general reputation of a borrower.

(k) “Data Subject” refers to existing borrower or loan applicant or any

one who in any way applies for or avails of a credit facility.

(l) “Government Lending Institutions” refer to existing and future

Government Financial Institutions (GFIs), Government-Owned and
Controlled Corporations (GOCCs) primarily engaged in lending activities,
including but not limited to, Land Bank of the Philippines, Development
Bank of the Philippines, Small Business Corporation, Peoples’ Credit and
Finance Corporation and Home Mutual Development Fund.

(m) “Negative Credit Information” refers to information or data

concerning the poor credit performance of borrowers, such as, but not
limited to, defaults on loans, adverse court judgments relating to debts
and reports on bankruptcy, insolvency, petitions or orders on suspension
of payments and corporate rehabilitation.

(n) “Non-Accessing Entity” refers to an entity other than a Submitting

Entity, Special Accessing Entity or Borrower that is authorized by the
Corporation to access credit information from a Special Accessing Entity.

(o) “Outsource Entity” refers to any accredited third-party provider to

whom the Corporation may outsource the processing and consolidation of
basic credit data pertaining to a borrower or issuer of debt or convertible
securities under such qualifications, criteria and strict confidentiality
guidelines that the Corporation shall prescribe and duly publish.

(p) “Positive Credit Information” refers to information/data concerning

the credit performance of a borrower, such as, but not limited to, information
on timely repayments or non-delinquency.

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 (q) “Relevant Government Agencies” refers to the Department of
Finance, Department of Trade and Industry, Bangko Sentral ng Pilipinas,
Insurance Commission and the Cooperative Development Authority.

(r) “SEC” refers to the Securities and Exchange Commission or the

Commission.

(s) “Special Accessing Entity” refers to a duly accredited private

corporation, qualified and accepted by the Corporation, engaged primarily
in the business of providing credit reports, ratings and other similar credit
information products and services.

(t) “Submitting Entity” refers to an entity which provides credit

facilities and required by the law and these Rules to submit information or
data about a borrower, including, but not limited to, banks, quasi-banks,
trust entities, investment houses, financing companies, cooperatives,
non-governmental, micro-financing organizations, credit card companies,
insurance companies and government lending institutions.

(u) “Subsidiary” refers to an entity, including an unincorporated entity

such as a partnership, that is controlled by the Borrower (known as the
parent), either because of its equity ownership of not less than fifty one
percent (51%) or in the management of its operations.

RULE 4

Submitting Entities and the Data to be Submitted

4.1. The following entities shall submit to the Corporation current,

objective, factual and basic credit data, both positive and negative, on all
their data subjects within sixty [60] days from the effectivity of these Rules:
a) Universal, commercial and thrift banks, including their trust
departments, rural banks and entities with quasi-banking license
issued by the BSP, including their subsidiaries and/or affiliates
that are engaged in the business of providing credit;
b) Life insurance companies, mutual benefit associations and other
similar entities supervised by the Insurance Commission;

29
 c) Credit card companies;
d) Financing companies;
e) Trust entities;
f) Investment houses with quasi-banking license;
g) Non-governmental organizations engaged in the micro
financing business; and
h) Government lending institutions, both GFIs and GOCCs
engaged primarily in lending;
i) Cooperatives engaged in lending activities such as credit
cooperatives or financial services cooperatives; and
j) Such other entities that may be considered eligible as
submitting entity by the Corporation from time to time.

Provided that the Corporation, after ensuring the capacity of submitting

entities, may allow a phasing in of submitting entities as determined by the
Corporation; Provided further that such data shall be in the form prescribed
by the Corporation, said basic credit data shall include all data that are in
the possession of the submitting entities for not more than the last five [5]
years prior to the effectivity of this Act.

4.2. Regular updates on the data shall be submitted by participating

entities within 30 calendar days from the time they are made available to
them by their data subjects in accordance with their credit policy and with
these rules.

4.3. The Corporation shall regularly collect basic credit data on

borrowers at least on a quarterly basis to correct or update said basic credit
data. For this purpose, when requested by the Corporation, the following
shall give the Corporation access to all relevant information which are
under their custody:

a) Government offices such as NSO and HUDCC;

b) Judicial and administrative tribunals like NLRC;
c) Prosecutorial agencies and other related agencies; and
d) Pension funds administered by the government such as SSS
and GSIS.

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 4.4. Basic Credit Data

Every participating entity shall submit to the Corporation the following

basic credit data on all data subjects:

a) Individual

i. Personal circumstances such as name (last, first, middle),

date of birth, sex, civil status, present residence, employer
and position or business, as the case may be;
ii. Number of children depending for support;
iii. TIN, SSS or GSIS No.;
iv. Net income;
v. Residence for the last 2 years;
vi. Employer/s or business/es for the last 5 years;
vii. Owners/lessee of house occupied;
viii. Car/s owned;
ix. Bank/s where accounts are maintained, including types of
bank accounts; and
x. Other assets, real or personal.

b) Corporation

i. Date of incorporation;
ii. Primary purpose or business;
iii. Term of existence;
iv. Principal place of business;
v. TIN/SSS No.;
vi. Directors and officers;
vii. Number of Employees;
viii. Average gross income for the last 2 years;
ix. Monthly expenses;
x. Net taxable income;
xi. Bank/s where accounts are maintained, including types of
accounts;
xii. Other assets, both real and personal; and
xiii. Board Resolution authorizing the borrowing of fund from a
credit institution/submitting entity.

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c) Partnership

i. Date of Registration;
ii. Partnership/business name;
iii. Term of existence;
iv. Type of business;
v. Principal place of business;
vi. TIN/SSS No.;
vii. Partners;
viii. Number of employees;
ix. Average gross income for the last 2 years;
x. Monthly expenses;
xi. Net taxable income;
xii. Bank/s where accounts are maintained, including types of
accounts;
xiii. Other assets, both real and personal; and
xiv. Partners’ Resolution authorizing the borrowing of fund from
a credit institution/submitting entity.

d) Cooperatives

i. Number and date of registration;

ii. Cooperative Identification Number (CIN);
iii. Primary purpose of business;
iv. Term of existence;
v. Principal place of business;
vi. TIN/SSS No.;
vii. Directors and officers;
viii. Number of Employees;
ix. Average Net Surplus for the last two (2) years;
x. Monthly expenses;
xi. Bank/s where accounts are maintained, including types of
accounts;
xii. Other assets, both real and personal; and
xiii. Board Resolution authorizing the borrowing of fund from a
credit institution/submitting entity.

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 e) Exposure Profile

(For each creditor)

i. Type of obligation or account (credit card, personal loan,

commercial loan, mortgage, secured);
ii. Type of transaction (maturity, revolving, open, LC,
Installments);
iii. Account no.;
iv. Client ID no.;
v. Date account was opened;
vi. Originating unit/branch/department for each transaction;
vii. Payment method (frequency of periodic payment or bullet);

a. Collateral/security;
b. Pricing/re-pricing;
c. Initial loan amount;
d. Outstanding balance;
e. Mode of payment;
f. Remaining period of obligation on the specific
exposure;
g. Pre-termination (both a “tag” and date of payment, if
applicable);
h. Maturity of obligation was settled;
i. Date of last account activity;
j. Date when account entered in arrears;
k. Amount past due: 1 to 29 days
30 to 59 days
60 to 89 days
90 to 119 days
120 to 149 days
150 to 179 days
Over 180 days
l. Restructuring (both a “tag” and the details of the
structuring);
m. Payment history vis-à-vis the frequency of payment
(i.e., any pattern of delinquency);

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 n. Aging of receivables (past due within one year, past
due over one year, accounts under litigation);
o. Write-off date (if applicable); and
p. Disputes and resolution of disputes.

f) For credit cards

i. Credit card no.;

ii. Issuing institution;
iii. Date card was first issued;
iv. Expiry date;
v. Extension and/or supplemental cards;
vi. Outstanding balance;
vii. Payment including aging information and usage pattern
(i.e., over the last 12 mos. and YTD);
viii. Aging of receivables (past due within one year, past due
over one year, accounts under litigation);
ix. Restructuring (both a “tag” and the details of the
restructuring);
x. Write-off (if applicable); and
xi. Cancellation date (if applicable).

4.5. Negative Information

The Corporation’s credit information database shall likewise contain

negative information which shall include, among others, the following:

a) Past due;
b) Default/s on loan/s;
c) Details of the settlement of loans that defaulted;
d) Foreclosures;
e) Adverse court judgments relating to debts;
f) Report on bankruptcy or insolvency;
g) Petition or order on suspension of payments;
h) Corporate rehabilitation;
i) Other pending court cases (either as plaintiff or defendant)
related to credit transactions or cases that will affect the financial
capacity of the borrower;
j) Inclusion in a bouncing check checklist;

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k) Cancelled credit cards; and
l) Such other information that may be determined by the
Corporation.

A. Retention Period for Negative Information in the Database

Any negative information on a borrower shall stay in the
Corporation’s database for not more than 3 years from and after the
date the negative information shall have been rectified through the
following:

i. Payment or liquidation of debt; or

ii. Settlement of debt through compromise agreement or court
decision exculpating the borrower from any liability.

Negative information shall be corrected and updated within 15

days from receipt of notice of payment, liquidation or settlement of
debt in accordance with the prescribed rules of the Corporation.

4.6. Rights of Data Subjects

a) A borrower shall have the right to have ready and

immediate access to credit information pertinent to him
subject to the payment of a prescribed fee;
b) He shall have the right to dispute erroneous, incomplete or
misleading credit information;
c) He shall be entitled to a simplified dispute resolution
process to fast track the settlement/resolution of disputed
credit information;
d) He shall be informed of any correction or removal of any
erroneous, incomplete or misleading information within
5 working days from verification or conclusion of an
investigation or from deletion of the disputed information, as
the case may be;

e) He shall be entitled to indemnity in case of denial, without

justification, of the aforementioned rights;
f) He shall be notified by a submitting entity of the latter’s
obligation to submit and disclose basic credit data to the
Corporation; and

35
 g) He shall have the right to know the causes of refusal of an
application for credit facilities or services from a financial
institution that uses credit data as basis or ground for such
refusal.

4.7. Persons Who Have Access to Credit Information

a) The following shall have access to basic credit data from

the Corporation:

i. Submitting entities;
ii. Special accessing entities;
iii. Data subjects; and
iv. Outsource entity/ies accredited by the Corporation.

b) Obligations of submitting entities:

i. To notify its borrowers of its obligation to submit

borrowers’ basic credit data and the disclosure of said
data to the Corporation;
ii. To hold strictly confidential any credit information
received from the Corporation; and
iii. To regularly submit to the Corporation any negative or
positive credit information that tends to update and/or
correct the credit status of borrowers; and
iv. To use credit information only for the declared purpose
of establishing the creditworthiness of the borrower.

4.8. Dispute Resolution Process

Any data subject shall have the right to dispute erroneous, incomplete,
outdated or misleading credit information by filing with the Corporation a
letter-complaint in the prescribed form. The Corporation shall investigate
and verify the disputed information within 5 working days from receipt of
the complaint. If its accuracy cannot be verified and cannot be proven,
despite earnest efforts to do so, the disputed information shall be deleted
at the end of the 5 day period from the action taken by the Corporation.
The data subject, accessing entities and special accessing entities who
have received such information shall be informed of the corresponding
correction or removal within 5 working days from deletion thereof. The

36
corporation should use simplified dispute resolution process to fast track
the settlement/resolution of the disputed credit information. Denial of the
data subject’s right, without justifiable reason, shall entitle the latter to
indemnity.

RULE 5

Establishment of the Central Credit Information Corporation

5.1. Capital Structure

The authorized capital stock of the Corporation shall be Five Hundred

Million Pesos (Php500,000,000.00) divided into One Million Two Hundred
Fifty Thousand (1,250,000) common shares with par value of One
Hundred Pesos (Php100.00) per share and One Million Eight Hundred
Seventy Five Thousand (1,875,000) preferred shares with par value of
Two Hundred Pesos (Php200.00) per share.

The amount of Seventy Five Million Pesos (Php75,000,000.00) shall

be appropriated in the General Appropriations Act for the subscription
of the common shares by the National Government to represent its
sixty percent (60%) equity share and the amount of Fifty Million pesos
(Php50,000,000.00) shall be subscribed and paid up by such qualified
investors.

The amount covering the payment of subscription of preferred shares

by the National Government shall be sourced from appropriations in the
General Appropriations Act.

The Board of Directors of the Corporation shall determine the terms,

features, restrictions and percentage of preferred shares and the rights
appurtenant thereto.

The National Government shall own and hold sixty percent (60%) of
the common voting shares while the balance of forty percent (40%) of the
common voting shares shall be owned and held by qualified investors
which shall be limited to industry associations of banks, quasi-banks and
other credit related associations including associations of consumers.

Equity participation in the Corporation shall be offered to, and held by

qualified private sector investors but in no case shall each of the qualified

37
investor represented by an association of banks, quasi-banks and other
credit related associations including the associations of consumers have
more than ten percent (10%) each of the total common shares issued by
the Corporation.

Preferred shares of stock of the Corporation shall have no voting rights

provided that when the ownership of the Corporation passes to the private
sector, the terms and conditions appurtenant thereto shall be defined in
the By-Laws of the Corporation.

The National Government shall continue to hold sixty percent (60%) of

the common shares for a period not to exceed five (5) years from the date
of commencement of operations of the Corporation. Within six (6) months
before the end of the fifth (5th) year, the National Government shall dispose
of at least twenty percent (20%) of its stockholdings in the Corporation to
qualified investors which shall be limited to industry associations of banks,
quasi-banks, insurance, financing and credit card companies including
consumer associations.

When the ownership of the majority of the issued common voting

shares passes to private investors, the stockholders shall cause the
adoption and registration with the Securities and Exchange Commission
of the appropriate Articles of Incorporation and by-laws within three (3)
months from such transfer of ownership. The fact of the change of the
nature of the Corporation from a government-owned and controlled
institution to a privately-owned entity shall be published once a week for
three (3) consecutive weeks in a newspaper of general circulation and/
or posted in the website of the Corporation for a period of thirty (30) days
from effectivity date of such acquisition.

5.2. Composition of the Board of Directors

The Corporation shall have a Board of Directors composed of fifteen

(15) members, all of whom shall serve on a part-time basis save only in
case where the director is holding an executive position which requires
full-time service.

The Board of Directors shall be composed of the following: (i) Chairman

of the SEC serving as ex officio Chairman, (ii) seven (7) appointed by
the President of the Philippines including the President of the Corporation
who is likewise appointed by the President and who shall be an ex officio
member of the Board, (iii) five (5) elected from the nominees of the qualified

38
private sector investors and (iv) two (2) independent directors. With the
exception of the first set of Board of Directors, all directors appointed and
elected shall hold office for a term of one (1) year commencing on the date
of their designation (for the first set) or until successors are elected and
shall have qualified.

No person shall be nominated by the National Government if he has

been connected directly with a banking or financial institution as a director
or officer, or has substantial interest therein within three (3) years prior to
his appointment.

The first Board of Directors shall be designated by the President not

later than sixty (60) days from the release of the funds representing the
contributions of the National Government. Thereafter, all directors shall be
chosen from a list of nominees during the annual stockholders’ meeting
which shall be held in accordance with the provisions of the Corporation’s
by-laws.

The directors shall act as a collegial body. A majority of the total number
of directors shall constitute a quorum for the transaction of business, and
every decision of a majority of the quorum duly assembled as a Board
shall be valid as a corporate act.

Regular meetings may be held at such time and in such place, and
upon such notice, as the Board of Directors may by resolution prescribe.
Special meetings, for any purpose, may at any time be called, by any of
the following: (a) Board of Directors upon petition of one-thirds (1/3) of the
outstanding stockholders or (b) the Chairman.

The principal office of the Corporation shall be in Metro Manila. It may

open and maintain extension offices at such places in the Philippines as
its Board of Directors may deem necessary and appropriate.

The directors can not attend or vote by proxy at board meetings save
only in case of the Chairman where the law provides that in case he/
she could not attend the meeting, the Commissioner designated by the
Chairman as his/her alternate shall attend for and in his/her behalf.

Whenever a vacancy shall occur in the membership of the private

sector in the Board of Directors, it shall be duty of the Corporate Secretary
to inform the Chairman of the Corporation within twenty-four (24) hours
from the existence of such vacancy. The Chairman shall within twenty-

39
four (24) hours from receipt of notice refer the matter to the shareholders
representing the private sector for their appropriate action.

If any vacancy occurs in the position occupied by a representative of

the National Government, the Corporation shall inform the President of
the Republic of the Philippines or his/her designated representative of the
existence of such vacancy within five (5) days from its occurrence who in
turn shall appoint the successor-director.

If any vacancy occurs in the position occupied by a representative

of the qualified private sector investor(s), the Board of Directors, if still
constituting a quorum, may fill the vacancy from the list of nominees
provided by the private sector shareholders. Otherwise, it shall be filled
only by an election at a regular or special meeting duly called for the
purpose.

In both cases, the director appointed or elected shall serve only the
unexpired term of his predecessor in office.

The foregoing rules on composition, vacancy and succession shall

apply only while the Government has control over the outstanding stocks of
the Corporation. When the control of the Corporation has been transferred
into the hands of the private sector, the provisions of the Corporation Code
and other relevant rules and regulations implemented by the Commission
shall apply.

5.3. Officers
The Board of Directors shall appoint a Corporate Secretary, Treasurer
and such other officers as it deems proper. The officers of the Corporation
shall be appointed and removed in accordance with existing civil service
rules and regulations for the duration of time when the Government holds
controlling interest over the Corporation.

The Board shall establish an Audit Committee, and such other

committees as it may deem necessary. The Board shall appoint the
members of the committees and designate a Chair for each committee.

5.4. Review of Qualifications and Disqualifications of Directors

The SEC shall, in coordination with the relevant government agencies,

pass upon and review the qualifications and disqualifications of individuals
elected or appointed directors of the Corporation and disqualify those
found unfit.

40
 a. Qualifications

A director shall have the following minimum qualifications:

i. He must be a Filipino citizen;
ii. He must be at least 30 years of age at the time of his
nomination;
iii. He must be of good moral character, of unquestionable
integrity, of known probity, and have attained competence in
the fields of law, finance, economics, computer science or
information technology; and
iv. For representatives of the private sector, he must have
at least one (1) share of stock in his name at the time of
nomination. For representatives of the government, he must
have at least one (1) share of stock at the time of appointment
and shall have the registration in his own name at the time
of nomination/appointment. Any director must continuously
own at least a share of stock during his term; otherwise, he
shall automatically cease to be a director.
b. Disqualifications

The following are disqualified from becoming directors/officers of

the Corporation:
i. Permanent Disqualification

Directors/officers permanently disqualified from holding a

director position:

i.1. Persons who have been convicted by final judgment of a

court for offenses involving moral turpitude such as, but
not limited to, estafa, embezzlement, extortion, forgery,
malversation, swindling, theft, robbery, falsification, bribery,
violation of B.P. Blg. 22, violation of R.A. 3019, otherwise
known as the Anti-Graft and Corrupt Practices Act and
prohibited acts and transactions under Section 7 of Republic
Act No. 6713 (Code of Conduct and Ethical Standards for
Public Officials and Employees);

i.2. Persons who have been convicted by final judgment of

a court sentencing them to serve a maximum term of

41
 imprisonment of more than six (6) years;
i.3. Persons who have been convicted by final judgment of the
court for violation of banking, insurance and securities laws,
rules and regulations;

i.4. Persons who have been judicially declared insolvent,

spendthrift or incapacitated to contract; and

i.5. Directors and officers of banks, investment houses with

quasi-banking license, insurance, financing and credit card
companies, trust entities, non-governmental organizations
engaged in the micro financing business, government
lending institutions found by the appropriate government
agency as administratively liable for violation of laws, rules
and regulations where a penalty of removal from office is
imposed, and which finding has become final and executory.

ii. Temporary Disqualification

ii.1. Persons who refuse to fully disclose the extent of their

business interest or any material information to the
appropriate supervising and examining department when
required pursuant to a provision of law or of a circular,
memorandum, rule or regulation. This disqualification shall
be in effect as long as the refusal exists.

ii.2. Directors who have been absent or who have not participated
for whatever reasons in more than fifty percent (50%) of all
meetings, both regular and special, of the board of directors
during their incumbency. This disqualification applies only
for purposes of the immediately succeeding election;

ii.3. Persons who have been convicted by a court for offenses

involving moral turpitude such as, but not limited to, estafa,
embezzlement, extortion, forgery, malversation, swindling,
theft, robbery, falsification, bribery, violation of B.P. Blg.
22, violation of Anti-Graft and Corrupt Practices Act and
prohibited acts and transactions under Section 7 of Republic
Act No. 6713 (code of conduct and ethical standards
for public officials and employees), violation of banking
laws, rules and regulations or those sentenced to serve a
maximum term of imprisonment of more than six years but

42
 whose conviction has not yet become final and executory;

ii.4. Directors and officers of closed banks, investment houses

with quasi-banking license, insurance, financing and
credit card companies, trust entities, non-governmental
organizations engaged in the micro financing business and
government lending institutions pending their clearance by
the appropriate government regulatory agency;

ii.5. Directors disqualified for failure to observe/discharge

their duties and responsibilities prescribed under existing
regulations. This disqualification applies until the lapse of
the specific period of disqualification or upon approval by the
appropriate government regulatory agency;

ii.6. Persons dismissed/terminated from employment for cause.

This disqualification shall be in effect until they have cleared
themselves of involvement in the alleged irregularity or
upon clearance, on their request, from the appropriate
government regulatory agency after showing good and
justifiable reasons;

ii.7. Persons with derogatory records as certified by, or on

the official files of, the Judiciary, National Bureau of
Investigation, Philippine National Police, quasi-judicial
bodies, other government agencies, International Police,
monetary authorities and similar agencies or authorities of
foreign countries for irregularities or violations of any law,
rules and regulations that would adversely affect the integrity
of the director/officer or the ability to effectively discharge his
duties. This disqualification applies until they have cleared
themselves of the alleged irregularities/violations or after a
lapse of five (5) years from the time the complaint, which
was the basis of the derogatory record, was initiated;
ii.8. Directors and officers of banks, investment houses with
quasi-banking license, insurance, financing and credit card
companies, trust entities, non-governmental organizations
engaged in the micro financing business, government lending
institutions found by the appropriate government regulatory
agency as administratively liable for violation of laws, rules
and regulations where a penalty of removal from office is

43
 imposed, or is found to be unfit for the position of directors or
officers because they were found administratively liable by
another government agency for violation of laws, rules and
regulations or any offense/violation involving dishonesty or
breach of trust, and which finding is pending appeal before
the appellate court, unless execution or enforcement thereof
is restrained by the court;
ii.9. Directors and officers of banks, investment houses with
quasi-banking license, insurance, financing and credit card
companies, trust entities, non-governmental organizations
engaged in the micro financing business, government lending
institutions found by the appropriate government regulatory
agency as administratively liable for violation of laws, rules
and regulations where a penalty of suspension from office
or fine is imposed, regardless whether the finding of the
government agency is final and executory or pending appeal
before the appellate court, unless execution or enforcement
thereof is restrained by the court. The disqualification shall
be in effect during the period of suspension or so long as the
fine is not fully paid; and

ii.10. Those under preventive suspension.

c. Disqualification Procedures

On the basis of evidence on the existence of any of the grounds

for disqualification, the incumbent director or officer concerned shall
be notified by the appropriate department of the SEC of the ground/s
for his disqualification and shall be required within fifteen (15) days
from receipt of such notice, subject to extension based on meritorious
grounds, to show cause why he should not be disqualified and included
in the list of disqualified persons.

Failure of the director/officer concerned to reply within the

prescribed period shall be considered a waiver and the appropriate
department of the SEC shall proceed to evaluate the case and submit
recommendations to the Commission en banc.

Upon approval by the Commission en banc, the concerned

director/officer shall be informed by the appropriate department of the
SEC of his disqualification from being a director/officer and/or of his
inclusion in the list of persons so disqualified.

44
 Effect of non-possession of qualifications or possession of
disqualifications. Director(s)/officer(s) elected or appointed who
does/do not possess all the qualifications and possess any of the
disqualifications mentioned shall be replaced by the Corporation even
if he has already assumed such position.

RULE 6

Confidentiality of Credit Information

6.1. The Corporation shall be authorized to release and disclose

consolidated basic credit data only to the following:
a. Accessing Entities;
b Special Accessing Entities;
c. Outsource Entities; and
d. Data Subjects.
6.2. An access to consolidated basic credit data by any of the foregoing
entities shall be subject to the following requirements:
a. Prior accreditation by the Corporation of special accessing
entities, non-accessing entities and outsource entities.
b. For accessing entities, prior subscription to the system through
the payment of annual fee and accumulated usage fee as the
Corporation may prescribe taking into consideration the cost
of creating and populating the program and maintenance
thereof.
c. For accessing and special accessing entities, there must be
prior notice to Data Subjects that their credit information shall
be shared with other lenders and a credit reporting agency.
This may be done via notification clause inserted in all loan/
credit applications for Data Subjects to sign.
c. For Data Subjects to access their respective credit information,
enrollment in the registry ID system of the Corporation. The
Data Subject shall pay a fee to cover the cost of transmission
of a secured file containing his/her credit information.

45
 6.3. Processed credit data made available to Accessing Entities shall
be limited to those pertaining to Data Subjects as defined in these rules.

6.4. The Corporation, the submitting entities, the accessing entities,

the outsource entities, the special accessing entities and non-accessing
entities shall hold the credit information under strict confidentiality and
shall use the same only for the declared purpose of establishing the
creditworthiness of the borrower.

a. A security system shall be established to ensure the

confidentiality of information. All accessing entities shall limit
access only to designated officers or employees who need
the information in the exercise of their duties and functions.

b. Internal control procedures shall be established by the

Corporation and the aforementioned entities. The set of
procedures shall cover the necessary controls for the
gathering of data, consolidation and transfer or access of the
credit information which shall ensure confidentiality and valid
use of the information.

c. A compliance officer shall be designated by each entity who

shall be directly responsible in maintaining the confidentiality
of the information and valid use of data. Such officer shall
conduct a regular evaluation of the integrity of the system and
shall submit to the Corporation a report on said evaluation.

6.5. Credit information shall not be released to entities other those

enumerated under section 6.1 above except upon order of the Court.

6.6. Special Accessing Entities are prohibited from releasing basic

credit data received from the Corporation or credit reports and credit
ratings derived from the basic credit data received from the Corporation,
to non-accessing entities unless written consent or authorization has
been obtained from the Data Subject: Provided, however, That in case
the borrower is a local government unit (LGU) or its subsidiary or affiliate,
the special accessing entity may release credit information on the LGU,
its subsidiary or affiliate upon written request and payment of reasonable
fees by a constituent of the concerned LGU.

6.7. Outsource entities, which may process and consolidate basic

credit data received from the Corporation, are absolutely prohibited from
releasing such basic or consolidated data other than to the Corporation.

46
 a. The responsibility of an outsource entity under section 6.7
shall cover its officers, employees, representatives, agents,
advisors, consultants or associates and other persons who
may participate in the processing and consolidation of basic
credit data.
b. The program for the processing and consolidation of the
basic credit data that shall be designed by outsource entities
shall have high security features and advanced facility that
will ensure the adequacy and integrity of the information
thereof.
6.8. In addition to the above, the Corporation shall issue and publish
specific confidentiality guidelines subject to review and approval by the
Commission.

RULE 7

Educational Campaigns

7.1. A continuing nationwide educational campaign shall be developed

and undertaken by the Corporation with the following objectives:
a. To promote the benefits of a credit information system to the
economy;
b. To create awareness on the rights of consumers/borrowers to
access their credit reports collected, stored and disseminated
by the Corporation;
c. To disseminate the rights of the borrowers to dispute any
incorrect/inaccurate credit information in the database file of
the Corporation;
d. To familiarize stakeholders of the procedure in collecting,
storing and disseminating credit information of borrowers by
the Corporation;

e. To brief consumers of other related information.

7.2. The Corporation shall consult and coordinate with the Bangko
Sentral ng Pilipinas and relevant government agencies, in the design and
development of the education campaign.

47
 RULE 8

Rules and Regulations

8.1. Any resolution or guidelines that shall be issued by the Corporation

affecting the credit information system shall be in accordance with the Act
and its implementing rules and regulations.

8.2. The Corporation shall submit reports as the Commission may

prescribe.

8.3. The Corporation shall establish its accreditation requirements on

the following:
a. Special Accessing Entities;
b. Non-Accessing Entities;
c. Outsource Entities.

8.4. The Corporation shall impose sanctions on:

a. The submitting entities for non-submission of reports and for
delayed and/or erroneous reporting;
b. Accessing entities, special accessing entities, outsource
entities and duly authorized non-accessing entities, for
breaches of the confidentiality of, or misuse of, the credit
information obtained from the credit information system;
c. Violations other applicable rules and regulations: Provided,
That these administrative sanctions shall be in the form of
fines in amounts as may be determined by the Corporation but
in no case to exceed Thirty Thousand Pesos (P30,000.00) a
day for each violation, taking into consideration the attendant
circumstances, such as the nature and gravity of the violation
or irregularity. Imposition of administrative sanctions shall be
without prejudice to any criminal and other sanctions as may
be applicable under the Act and relevant laws.

8.5. In addition to the above monetary fines and subject to the procedures
that shall be established by the Corporation, the following sanctions shall be
imposed to an entity which repeatedly violates the requirements of the rules:

48
 a. Suspension of the rights of any Accessing Entity or Special
Accessing Entity to access the credit information from the
Corporation;

b. Cancellation of the right of any Accessing Entity or Special

Accessing Entity to access the credit information. The
cancellation shall not affect the obligation of an accessing
entity to continuously provide basic credit data to the
Corporation;

c. For entities accredited with the Corporation, suspension or

revocation of the entity’s accreditation.

8.6. The foregoing administrative sanctions shall be without prejudice

to any criminal and other sanctions as may be applicable under these
rules.

RULE 9

Congressional Oversight Committee

9.1. Composition of Congressional Oversight Committee.

There is hereby created a Congressional Oversight Committee

composed of seven (7) members from the Senate and seven (7)
members from the House of Representatives. The members from the
Senate shall be appointed by the Senate president with at least three
(3) Senators representing the minority. The members from the House
of the representatives shall be appointed by the Speaker with at least
three (3) members representing the minority.

9.2. Expiration of Oversight Functions and its Revival.

The oversight committee shall review or revise the implementing

rules drafted by the SEC within thirty (30) days from the submission
of the said rules to the oversight committee. After the Congressional
Oversight Committee approved the Implementing Rules and
Regulations, it shall thereafter become functus officio, and therefore
cease to exist. Provided, however, the Congress may revive the
Congressional Oversight Committee in case of a need for any major
revision/s in the Implementing Rules and Regulations.

49
 RULE 10

Indemnity in Favor of the Corporation, its Officers and Employees

Unless the Corporation or any of its officers and employees is found

liable for any willful violation of this Act, bad faith, malice and/or gross
negligence, the Submitting Entities, Accessing Entities, special Accessing
Entities, Outsource Entities and duly authorized non-accessing entities
shall hold the Corporation, its directors, officers and employees free and
harmless to the fullest extent permitted by law and shall indemnify them
for any and all liabilities, losses, claims, demands, damages, deficiencies,
costs and expenses of whatsoever kind and nature that may arise in
connection with the performance of their functions without prejudice to
any criminal liability under existing laws.

All consolidated basic information reports, credit reports and the like
prepared and released by the corporation and distributed to its accredited
accessing entities, special accessing entities, outsource entities and
authorized non-accessing entities shall be considered as privileged
communication under Title Thirteen, Chapter One of the Revised Penal
Code on Libel and subject to the rules on confidentiality under Rule Six
(6) hereof.

RULE 11

Penalties

The penalty of imprisonment of not less than one (1) year nor more
than five (5) years or a fine of not less than Fifty thousand pesos (Php
50,000.00) nor more than One million pesos (Php 1,000,000.00), or
both, at the discretion of the court, shall be imposed upon any person
convicted in willfully violating any of the provisions of this Act or the rules
and regulations promulgated by the Commission, in coordination with the
relevant government agencies, if the offender is a corporation, association,
partnership or any juridical person, the penalty shall be imposed upon
the responsible officers, as the case may be; who participated in the
commission of the crime or who shall have knowingly permitted or failed
to prevent its commission. If the offender is an alien, he shall, in addition to

50
the penalties herein prescribed, be deported without further proceedings
after serving the penalties herein prescribed. If the offender is a public
official or employee, he shall, in addition to the penalties prescribed herein,
suffer absolute or temporary disqualification from government or public
office, as the case may be.

RULE 12

Inviolable Nature of the Secrecy of Bank Deposits and/or Client

Funds

Except upon written waiver duly accomplished by the borrower,

information on bank deposits and investment in Government bonds
denominated in Philippine currency, foreign currency deposits and in funds
and properties in the custody of the bank belonging to private individuals,
corporations or any other entity shall continue to be governed by the
provisions of Republic Act No. 1405, Republic Act No. 6426 as amended,
and Republic Act No. 8791, respectively.

For this purpose, the term “deposit” shall include deposits of whatever
nature, including savings, time and current account; investment in bonds
shall refer to investment in bonds issued by the Government of the
Philippines, its political subdivisions and its instrumentalities. Funds and
properties in the custody of the bank shall refer to those items held by the
bank either as security or collateral as well as those held in trust in the
trust department of a bank.

RULE 13

Principal Government Agency

The Securities and Exchange Commission (SEC), as lead government

agency to implement and enforce the provisions of the Credit Information
System Act is hereby authorized to establish within the Commission,
an office dedicated to the task under the law, including performing,
whenever appropriate and deemed necessary, on-site and off-site audits

51
on the Credit Information Corporation (CIC). The Commission is likewise
empowered to request any information as may be necessary as incidental
to the excercise of its authority over the CIC granted under this Act as well
as visitorial powers.

RULE 14

Annual Report of the Corporation

The Corporation shall submit to the Commission on Audit, the National

Government (Office of the President) and the Securities and Exchange
Commission an annual report on its operations one hundred twenty (120)
days from the date end of the preceding year.

RULE 15

Effectivity Clause

These rules shall take effect immediately upon its publication in two
newspapers of general circulation.

For the Securities and Exchange Commission

(Sgd.) FE B. BARIN
Chairperson

APPROVED, on the 27th day of May 2009 in the City of Mandaluyong.

52
 BY THE CONGRESSIONAL OVERSIGHT COMMITTEE ON THE
IMPLEMENTING RULES AND REGULATIONS OF THE
CREDIT INFORMATION SYSTEM ACT

House of Representatives Senate of the Philippines

(Sgd.) HON. JAIME C. LOPEZ (Sgd.) HON. EDGARDO J. ANGARA
Chairman Chairman
House Panel Senate Panel Members:

Members:

HON. LUIS R. VILLAFUERTE
(Sgd.) HON. RICHARD J. GORDON
(Sgd.) HON. MARC DOUGLAS C. CAGAS IV
(Sgd.) HON. LOREN B. LEGARDA
(Sgd.) HON. MARIA ZENAIDA B. ANGPIN
(Sgd.) HON. RAMON “BONG” REVILLA, JR.

(with an exception regarding 5.1)

(Sgd.) HON. RONALDO B. ZAMORA

(Sgd.) HON. FRANCISCO N. PANGILINAN

HON. MAR-LEN ABIGAIL S. BINAY
HON. ALLAN PETER S. CAYETANO
HON. CINCHONA CRUZ-GONZALES
(Sgd.) HON. PIA S. CAYETANO

Committee Secretary:

(Sgd.) ATTY. RAMON FEDERIZON

(Sgd.) CHARLYNE CLAIRE FUENTES-OLAY

53
 Introduction to
Credit Information Corporation

55
WHAT IS CIC?

• Government-owned and-controlled corporation

• 60% owned by the National Government and 40% owned by

industry associations of banks/quasi-banks and association
of consumers – BAP, CTB, RBAP, CCAP and PCC

• Mandated to develop and maintain comprehensive and centralized

credit information system

• Credit information system for the collection and dissemination of

fair and accurate data relevant to credit

REPUBLIC ACT 9510

• Credit Information System Act (CISA)
• Law passed in 2008 creating the CIC

• The Securities and Exchange Commission is the lead

government agency to implement the CISA, in coordination with
other relevant government agencies and private associations of
financial institutions

WHAT IS THE POLICY BEHIND CISA?

To address the need for a comprehensive, centralized, and reliable

credit information system intended to:
1. Improve the overall availability of credit to MSMEs

2. Provide credit information at the least cost to eligible participants

3. Ensure the protection of consumer rights and the existence of

fair competition in the industry at all times

4. Reduce the overall credit risk thereby contributing to a healthier

and more stable financial system

57
WHAT ARE THE FUNCTIONS OF CIC?

The CIC has three (3) important functions:

1. To receive and consolidate basic credit data

2. To act as a central registry or repository of credit information

3. To provide access to reliable, standardized information on

credit history and financial condition of borrowers

HOW TO ACCESS CIC

The Credit Reporting system provided by CIC can be accessed

through following channels:

1. Web Site: the online CIC web site available for Operators via
standard Internet Browsers

2. Application-to-Application: services provided by CIC can

be integrated into application processing system used for
loan origination (standard web service with XML interfaces are
provided)

3. Bulk mode: services provided by CIC can be enquired in bulk

mode by providing a TXT file containing subject data to be en-
quired

58
CIC Circular 01 Series of 2015

59
CIC Circular No. 2015-01
Series of 2015

FOR : UNIVERSAL, COMMERCIAL AND THRIFT BANKS, INCLUDING

THEIR TRUST DEPARTMENTS, RURAL BANKS AND ENTITIES WITH
QUASI-BANKING LICENSE ISSUED BY THE BSP, INCLUDING THEIR
SUBSIDIARIES AND/OR AFFILIATES THAT ARE ENGAGED IN THE
BUSINESS OF PROVIDING CREDIT; LIFE INSURANCE COMPANIES,
MUTUAL BENEFIT ASSOCIATIONS AND OTHER SIMILAR ENTITIES
SUPERVISED BY THE INSURANCE COMMISSION; CREDIT
CARD COMPANIES; FINANCING COMPANIES; TRUST ENTITIES;
INVESTMENT HOUSES WITH QUASI-BANKING LICENSE; NON-
GOVERNMENTAL ORGANIZATIONS ENGAGED IN THE MICRO
FINANCING BUSINESS; GOVERNMENT LENDING INSTITUTIONS,
BOTH GFIS AND GOCCS ENGAGED PRIMARILY IN LENDING;
COOPERATIVES ENGAGED IN LENDING ACTIVITIES SUCH AS
CREDIT COOPERATIVES OR FINANCIAL SERVICES COOPERATIVES;
AND OTHER ENTITIES PROVIDING CREDIT FACILITIES

SUBJECT: ENFORCEMENT OF THE CREDIT INFORMATION

SYSTEM ACT PURSUANT TO REPUBLIC ACT NO. 9510 AND ITS
IMPLEMENTING RULES AND REGULATIONS

SECTION 1. Background

Republic Act (R.A.) No. 9510 entitled: An Act Establishing the Credit
Information System and for Other Purposes otherwise known as the
Credit Information System Act (the “Act”) was approved on 31 October
2008, establishing Credit Information Corporation (“CIC”), requiring banks,
quasi-banks, their subsidiaries and affiliates, credit card companies, life
insurance companies and other entities providing credit facilities to submit
credit information and updates thereon on a regular basis to the CIC whose
primary purpose is to receive and consolidate such basic credit data. CIC
is thus, mandated to act as a central registry or central repository of credit
information, and to provide access to reliable and standardized information
on the credit history and financial condition of borrowers.

61
SECTION 2. Purpose

This Circular is issued for the following purposes:

2.1. To enforce the Act, as well as its promulgated rules and regulations,
which directs and requires banks, quasi-banks, their subsidiaries and
affiliates, credit card companies, life insurance companies and other
entities providing credit facilities, to submit the credit information of its
borrowers and thereafter update the same on a regular basis to the CIC;

2.2. To ensure that the Submitting Entities comply with the requirements
of the Act and its implementing rules and regulations, and other regulatory
requirements; and

2.3.To prescribe the rules and procedures for submitting credit

information and updates to the CIC and other obligations of Submitting
Entities thereunder.

SECTION 3. Scope

The provisions of this Circular shall be enforced and applied to the

following entities providing credit facilities, hereinafter referred to as,
individually “Submitting Entity”, and collectively as “Submitting Entities”:

3.1. Universal, commercial and thrift banks, including their trust

departments, rural banks and entities with quasi-banking license issued
by the BSP, including their subsidiaries and/or affiliates that are engaged
in the business of providing credit;
3.2. Life insurance companies, mutual benefit associations and other
similar entities supervised by the Insurance Commission;

3.3. Credit card companies;

3.4. Financing companies;

3.5. Trust entities;

3.6. Investment houses with quasi-banking license;

3.7. Non-governmental organizations engaged in the micro financing

business;

62
 3.8. Government lending institutions, both GFIs and GOCCs engaged
primarily in lending;

3.9. Cooperatives engaged in lending activities such as credit

cooperatives or financial services cooperatives; and

3.10. Other entities providing credit facilities.

SECTION 4. Definition of Terms

“Accessing Entity” refers to any Submitting Entity or any

other entity authorized by the CIC to
access Consolidated Credit Data from
the CIC.

“ Affiliate” refers to a corporation, of which not more

than fifty percent (50%) but not less than
ten percent (10%) of the outstanding
voting stock is directly or indirectly
owned, controlled or held, with the power
to vote, or under common control by the
Submitting Entity or Borrower as the
case may be.

“Basic Credit Data” means basic credit information, which

includes Positive and Negative Credit
Information provided by a Borrower
to the Submitting Entity in connection
with an application for and/or availment
of a credit facility, and any information
on the Borrower’s creditworthiness
in the possession of the Submitting
Entity and other factual and objective
information related or relevant thereto
in the Submitting Entity’s data files; but
shall exclude confidential information
on bank deposits and /or client funds
under existing laws unless the Borrower
executes a Deposit and/or Fund Waiver.

63
“Borrower” means a natural or juridical person,
including any local government unit, its
subsidiaries and affiliates, which applies
for and/or avails of a Credit Facility.

“Consolidated Credit Data” refers to the output of the CIC comprising

of Basic Credit Data, and other data or
credit information in the possession
of the CIC and accessible through the
System.

“Credit Facility” refers to any loan, credit line, guarantee,

standby letters of credit, trust receipts, or
other form of financial accommodation
or credit from the Submitting Entity,
except that deposits in banks shall not be
considered a credit facility extended by
the depositor in favor of the bank.
“Data Subject” refers to an existing borrower or loan
applicant or anyone who in any way
applies for or avails of a credit facility.

“Deposit and/ or Fund Waiver” refers to the written waiver duly executed
by a Borrower, waiving confidentiality of
information on his bank deposits and /or
client funds under existing laws, including
Republic Act No. 1405 (The Law on
Secrecy of Bank Deposits), Republic
Act No. 6426 (The Foreign Currency
Deposit Act), Republic Act No. 8791 (The
General Banking Law of 2000) and their
respective amendatory laws.

“Error Report” refers to system-generated report/s from

the CIC that identifies errors in the file,
in prescribed format, submitted by the
Submitting Entity.

“Negative Credit Information” refers to information/data concerning the

poor credit performance of Borrowers
such as, but not limited to, adverse court

64
 judgments relating to debts and reports
on bankruptcy, insolvency, petitions or
orders on suspension of payments and
corporate rehabilitation.

“Positive Credit Information” refers to information or data concerning

the credit performance of a Borrower
such as, but not limited to, information
on timely payments/ repayments or non-
delinquency.

“System” refers to the program and database of the

CIC through which the Accessing Entity
and Data Subject shall be allowed to
access Consolidated Credit Data in the
possession of the CIC.

“Update Cycle Date” means the period within which the

Submitting Entity shall submit new and
updated Negative Credit Information,
Positive Credit Information or other
credit information to the CIC to update
previously submitted information. The
reference date for credit cards is the
statement cut-off date while the reference
date for other entities is the end of the
month.

SECTION 4. Obligations of the Submitting Entity

4.1. The Submitting Entity shall inform its Borrowers in writing of its
obligation to submit their Basic Credit Data and other credit information to
the CIC.

4.2. The Submitting Entity may adopt the following letter template to
notify their existing Borrowers of its obligations under the Act:

65
 “Dear Valued Client:

This is to notify you that pursuant to

Republic Act (R.A.) No. 9510 and its
Implementing Rules and Regulations
(IRR), creating the Credit Information
Corporation (CIC) we are mandated to
submit your basic credit data (as defined
in R.A. No. 9510 and its IRR), as well
as any regular updates or corrections
thereof, to the CIC for consolidation and
disclosure as may be authorized by the
CIC. Consequently, your basic credit data
may thus be shared with other lenders
authorized by the CIC, and other credit
reporting agencies duly accredited by the
CIC, for the purpose of establishing your
creditworthiness.

For more information, please contact

(name of the Submitting Entity) or visit
our website (website of the Submitting
Entity).

Thank you.

[Name of the Submitting Entity]”

4.3. The Submitting Entity may adopt the following notification clause
template to be inserted in its loan/ credit applications for Data Subjects to
sign:
“I hereby acknowledge and authorize: 1)
the regular submission and disclosure
of my basic credit data (as defined
under Republic Act No. 9510 and its
Implementing Rules and Regulations) to
the Credit Information Corporation (CIC)
as well as any updates or corrections

66
 thereof; and 2) the sharing of my basic
credit data with other lenders authorized
by the CIC, and credit reporting agencies
duly accredited by the CIC.”

4.4. The Submitting Entity shall maintain copies of the letter notification
and, when so required by the CIC, submit the same to the latter.

4.5. If a Borrower executes a Deposit and/or Fund Waiver, the

Submitting Entity shall maintain a copy of the same and, when so required,
submit the same to the CIC.

4.6. The Submitting Entity shall regularly submit the Basic Credit Data
of all its Borrowers contained in its database, file or system, to the CIC not
later than on the 5th day of the month and in the form/ format and manner
prescribed by the CIC.

4.7. The Submitting Entity shall ensure that the Basic Credit Data of its
Borrowers with the CIC is accurate, complete, correct, and current up
to the relevant Update Cycle Date.

4.8.
The Submitting Entity shall ensure that when receiving Error
Reports from the CIC, the Submitting Entity shall rectify the errors in the
relevant files and send the corrected files to the CIC within a period of
three (3) working days.

4.9. The Submitting Entity shall develop an internal dispute resolution

process by which a Data Subject can dispute information recorded in
his own Consolidated Credit Data, and by which said dispute may be
investigated and resolved within a period of five (5) working days.

4.10. The Submitting Entity shall extend full, complete and timely
cooperation to the CIC with respect to disputes brought before it by Data
Subjects who allege that the credit information pertaining to them is
erroneous, incomplete, or misleading.

4.11. The Submitting Entity shall educate its Borrowers on the

importance of maintaining a good credit record.

4.12. Submitting Entity in good standing may access the System

to inquire on a Data Subject provided that the terms and conditions as
hereinafter promulgated by the CIC are complied with.

67
 4.13. Submitting Entity shall comply with these provisions in order
to maintain good standing and violation of any of these provisions shall
subject them to penalties and fines under CISA, IRR and rules as may be
promulgated by the CIC or the Securities and Exchange Commission, as
may be applicable.

SECTION 5. Repealing Clause

All issuances, orders, rules and regulations or parts thereof that are
inconsistent with the provisions of this Circular are hereby repealed,
amended or modified accordingly.

SECTION 6. Separability Clause

Should any provision of this Circular be declared invalid or

unconstitutional, the other provisions not affected thereby shall remain
valid and subsisting.

SECTION 7. Effectivity

This Circular shall be effective fifteen (15) calendar days after the
date of its publication either in the Official Gazette or in a newspaper of
general circulation in the Philippines and upon filing with the University of
the Philippines Law Center of three (3) certified copies.

Signed this 15th day of May 2015, Makati City, Philippines.

(Sgd.) MR. JAIME CASTO JOSE P. GARCHITORENA

PRESIDENT

68
CIC Circular 02 Series of 2015
CIC Circular No. 2015-02
Series of 2015

FOR : CREDIT CARD ISSUERS; UNIVERSAL, COMMERCIAL, AND

THRIFT BANKS, INCLUDING THEIR TRUST DEPARTMENTS, RURAL
BANKS AND ENTITIES WITH QUASI-BANKING LICENSE ISSUED
BY THE BANGKO SENTRAL NG PILIPINAS, INCLUDING THEIR
SUBSIDIARIES AND/OR AFFILIATES THAT ARE ENGAGED IN THE
BUSINESS OF PROVIDING CREDIT; FINANCING COMPANIES;
GOVERNMENT-OWNED AND-CONTROLLED CORPORATIONS
ENGAGED IN LENDING; LARGE AND MEDIUM COOPERATIVES;
INSURANCE COMPANIES, MUTUAL BENEFIT ASSOCIATIONS AND
OTHER SIMILAR ENTITIES SUPERVISED BY THE INSURANCE
COMMISSION; AND NON-STOCK SAVINGS AND LOAN
ASSOCIATIONS

SUBJECT: DEADLINE FOR PRODUCTION SUBMISSION OF CREDIT

DATA; AND TECHNICAL REQUIREMENTS

Pursuant to Republic Act (R.A.) No. 9510 entitled: An Act Establishing

the Credit Information System and for Other Purposes otherwise known
as the Credit Information System Act, and its Implementing Rules and
Regulations (IRR), this Circular is hereby issued to provide supplemental
guidelines for the enforcement of CIC Circular No. 2015-01 dated 15 May
2015, in order to enforce and implement the Credit Information System.

SECTION 1. Scope

Rule 4.1 of the IRR of R.A. No. 9510 authorizes the Credit Information
Corporation (CIC) to allow a phasing in, thus, this Circular shall cover the
following entities to submit all credit data in their possession for the last
five (5) years prior to the effectivity of this Circular:

1.1 Credit card issuers;

1.2 Universal and commercial banks, including their trust departments;
1.3 Thrift banks, including their trust departments;

71
 1.4 Rural banks and entities with quasi-banking license issued by
the Bangko Sentral ng Pilipinas, including their subsidiaries and/
or affiliates that are engaged in the business of providing credit;
1.5 Financing companies;
1.6 Government-owned and-controlled corporations engaged in
lending;
1.7 Large and medium cooperatives as defined by the CDA; and
1.8 Insurance companies, mutual benefit associations and other
similar entities supervised by the Insurance Commission; and
non-stock savings and loan associations.

Note: The complete list of data elements and data formats can be requested
from the CIC by sending an e-mail to: [email protected]

SECTION 2. Deadline for Production Submission

Submitting Entity Deadline

Credit card issuers 30 November 2015
Universal and commercial banks, including their
31 March 2016
trust departments
Thrift banks, including their trust departments 30 April 2016
Rural banks and entities with quasi-banking
license issued by the BSP, including their
30 June 2016
subsidiaries and/or affiliates that are engaged in
the business of providing credit
Financing companies 31 August 2016
Government-owned and-controlled corporations
30 September 2016
engaged in lending
Large cooperatives as defined by the CDA 30 October 2016
Medium cooperatives as defined by the
CDA; insurance companies, mutual benefit
associations and other similar entities 31 December 2016
supervised by the Insurance Commission; and
non-stock savings and loan associations

72
SECTION 3. Technical Requirements

The Submitting Entity Information Sheet (Annex “A”) must be

accomplished and submitted together with the Secretary’s Certificate
(template of which is enclosed as Annex “B”) or equivalent document that
is acceptable to the CIC, designating the persons/representatives duly
authorized to submit, as well as access the error report folders of the CIC’s
Credit Information System.
The Technical Requirements and guidelines for submission to the CIC
are as follows:

1. Submission File

a. Must be extracted from .txt file in Unicode Transformation

Format (UTF)-8 without byte order mark (BOM) format,
compressed and zipped into a .zip file and encrypted into a
.gpg file;
b. Must be in UTF-8 format without BOM and could be verified
using Notepad++;
c. File must conform with validation rules defined by the CIC;
and
d. File Encryption software used must be the latest Gpg4Win
software from Gpg4Win website*.

2. Access to File Transfer Protocol (FTP) Submission Folder

a. Internet connection must use FTP Client software with

Transport Layer Security (TLS) 1.2 support such as but not
limited to CuteFTP or FileZilla*;
b. Anti-Virus software must be installed and must be updated
on the equipment where transmission is to originate to
ensure that Submission File is free from malware; and
c. Submission File must be sent behind the Submitting Entity’s
firewall with its registered public Internet Protocol (IP)
address.
*Note: CIC Encryption Key and login credentials will be sent by the
CIC once registration process is completed.

73
SECTION 4. Sanctions

Non-submission of reports, and/or delayed submission of reports as

well as submission of erroneous data shall subject the entity to sanctions,
as hereinafter promulgated by the CIC.

SECTION 5. Repealing Clause

All issuances, orders, rules and regulations or parts thereof that are
inconsistent with the provisions of this Circular are hereby repealed,
amended or modified accordingly.

SECTION 6. Separability Clause

Should any provision of this Circular be declared invalid or

unconstitutional, the other provisions not affected thereby shall remain
valid and subsisting.

SECTION 7. Effectivity

This Circular shall be effective fifteen (15) calendar days after the
date of its publication either in the Official Gazette or in a newspaper of
general circulation in the Philippines and upon filing with the University of
the Philippines Law Center of three (3) certified copies.

Signed this 28th day of September 2015, Makati City, Philippines.

(Sgd.) MR. JAIME CASTO JOSE P. GARCHITORENA

PRESIDENT

74
REPUBLIC OF THE PHILIPPINES}

________________________________} S.S.

SECRETARY’S CERTIFICATE

I, ___________________________, Filipino, of legal age, with

address at ________________________________, under oath, state:

1. I am the duly elected Corporate Secretary of __________________

______________ (the “Corporation”), a corporation duly organized and
existing under and by virtue of the laws of the Republic of the Philippines
with office address at ________________________________.

2. As Corporate Secretary, I have possession of the records of the

Corporation.

3. During the Regular/ Special Meeting of the Board of Directors held

on ______________________ at ______________________, wherein a
quorum was present and acted throughout, the following resolutions were
unanimously approved and adopted:

“RESOLVED, AS IT IS HEREBY RESOLVED, that

______________________ is the authorized representative
of the Corporation to sign the Submitting Entity Information
Sheet to be submitted to the Credit Information Corporation;

“RESOLVED, AS IT IS HEREBY RESOLVED, that the following

employees/ personnel of the Corporation are duly authorized
to submit the credit data of the Corporation’s borrowers or
data subjects as defined and pursuant to the requirements of
Republic Act No. 9510 to the Credit Information Corporation
(CIC); as well as access the error report folders of CIC’s Credit
Information System:

75
 Name Position
_______________________ _______________________
_______________________ _______________________
_______________________ ____________________
_______________________ _____________________
_______________________ _____________________

The foregoing names shall likewise be indicated

in the Information Sheet to be submitted to the CIC.

RESOLVED FINALLY, that the following

resolutions shall remain valid and binding unless the
Corporation, through Board Resolution or Secretary’s
Certificate, issues and transmits to the CIC a subsequent
Board Resolution or Secretary’s Certificate expressly
repealing or amending any or all of these resolutions.”
4. The foregoing resolution has not been revoked, modified or
suspended, and shall remain in full force and effect, and may be relied
upon unless written notice to the contrary is issued by the Corporation.

IN WITNESS WHEREOF, I hereby affix my signature this

__________ at ____________________.

__________________
Corporate Secretary

SUBSCRIBED AND SWORN to before me this __ day of

____________ __________ at ____________________, affiant exhibiting
to me his/her government issued identification card valid until __________
in ____________.

Doc. No. ____;

Page No. ____;
Book No.____;
Series of 2015.

76
Submitting Entities Information Sheet (SEIS)

77
 Submitting Entities Information Sheet (SEIS)
CIC Control Number

Credit Information Corporation TIN Number

Submitting Entity Information Sheet
Company Registration Number

Submitting Entity Name

Submitting Entity Type

Commercial/Universal Bank Rural Bank Thrift Bank Micro-Finance

Cooperative Utility Trust Entity Insurance
Credit Card Government Lending Institution Pawnshop Leasing/Financing
Investment House Other Government Institution Private Lending Institution Others

Address

Primary Contact Person

Last Name First Name Middle Name

Position Contact Number E-mail

Secondary Contact Person

Last Name First Name Middle Name

Position Contact Number E-mail

I hereby certify that the names of the individuals indicated in Authorized Representative
this Information Sheet are the duly authorized
employees/personnel of the Submitting Entity indicated above
who will submit data and access the error report folders of the
Credit Information System.
__________________________________________
Signature Above Printed Name
I declare under the penalty of perjury that the information
and facts stated herein are true, correct and complete. Date : _______________

FOR CIC USE ONLY

Recommending Approval Approved

__________________________________________ __________________________________________
Signature Above Printed Name Signature Above Printed Name
Date : _______________ Date : ____________________
Page 1 of 2

79
 Operators
CIC's CIS Environments*
Branch
Last Name First Name Middle Name Designation Contact Number Email Test Production
Code
Batch A2A Web Batch A2A Web

Page 2 of 2
* Access Roles in CIS Test & Production Env.
Batch Access Role given to those with submission & enquiry functions using batch (ftp) channel;

* Access Roles in CIS Test & Production Env.

A2A Access
Web Access
Role given to those with enquiry (only) function using the A2A channel (usu. the owner of the application that interacts with CIS);
Role given to those with enquiry (only) function using the web channel (most users fit in this role);

Batch Access Role given to those with submission & enquiry functions using
batch (ftp) channel;

A2A Access Role given to those with enquiry (only) function using the A2A
channel (usu. the owner of the application that interacts with CIS);

Web Access Role given to those with enquiry (only) function using the web
channel (most users fit in this role);

80
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