Caribbean Credit Bureau Ltd.Make Credit Work for you!www.ccbl.info.tt/blog/feed.php2021-02-19T19:24:27+00:00Data Privacy Day<p>Just recently, the world celebrated Data Privacy day. January the 28th is the day designated for the annual celebration and observance of the importance of Data Privacy. Data Privacy Day has its origins in the United States and Canada in January 2008 following from the efforts in Europe with their Data Protection Day celebration and the day January 28 was selected for Data Protection Day to commemorate the January 28th, 1981, signing of Convention 108 which was the first legally binding international treaty dealing with privacy and data protection.</p>
<p>Since 1981, privacy and data protection have become essential elements for most business operations and a concern for many in our daily lives. As we continue to evolve into a digital society in which there is an increasing reliance on information technology, there will be an apparent need to upload, use, collect and share our personal information for our daily operations and transactions on digital platforms. However, as of consequence of our movement from a paper-based system to the globally connected digital platforms, is the increased risk and easier ability to access and use the information which is being collected, stored, and transmitted via these digital mechanisms. In a paper-based system, the emphasis was placed on simply ensuring the premises were secured, however, in a digital platform there are no physical structure and boundary as information transcends across countries. Hence, there is a need to adapt and ensure effective measures are implemented to place a firewall of protection against any potential invasion of the privacy and rights of those to whom the information relates to i.e. the data subjects.</p>
<p>Privacy has served as an important legal and psychological concept of human society almost akin to an innate feature of human existence. Therefore, as our society progresses to a digital domain that inherently facilitates convenience and ease of access, there should be also the advancement of discussions and greater awareness to ensure the protection of the fundamental rights of our societies that is privacy and more specifically data privacy and access is granted when the owner of the information permits.</p>
<p>Information based businesses are in a gold rush phase as information has become a leading global commodity akin to that of gold and money. Information is often being traded due to its expanding value and, at times, traded without the knowledge or consent of the data subject.</p>
<p>The Caribbean Credit Bureau is an information-based business and in the absence of specific regulations, we have adopted a standard of service which is premised on the fundamental principle that the consumers’ data is their own. Therefore, to use or access such data there is the need to acquire the consent of the consumer (data subject).</p>
<p>Whilst information is to be valued, it should also be protected. Thus, in addition to recognising the rights of the data subject to control their data, there is also the need to recognise and implement appropriate measures to ensure a high level of confidentiality, the prevention of unauthorized access and misuse of data.</p>
<p><br />As technology evolves, so too must our efforts to ensure data privacy.</p>www.ccbl.info.tt/blog/index.php?controller=post&action=view&id_post=202021-02-19T19:24:27+00:00Credit Reporting as a mechanism to address racial disparities and closing the racial wealth gap<p>A credit report seeks to provide an objective basis for determining someone’s eligibility for credit. An independent entity i.e. a credit bureau collects and discloses the credit information of an individual by way of a credit report. This credit information shows how they would have serviced their debts in the past to provide an unbiased gauge of their credit risk and therefore their likelihood of meeting the credit requirements in the request to be extended credit. This tool seeks to circumvent heavy reliance on personal interviews and other means in the evaluation of applications for credit by which subjective factors such as race and gender may come into play.</p>
<p>However, research in the United States is showing that within the very use of credit information there appears to, unfortunately, be a deep-rooted, underlying presence of discrimination stemming from the historical injustices and racial economic divide and disadvantage of those of African descent. Such has the potential to allow the issue of a general lack of financial access in the African American community to persist to this day thereby perpetuating the historical injustices and disadvantages suffered by those in that community.</p>
<p>Thus, in the American context, as they go back to review the history of credit information, they also take into account and incorporate the past historical disparities stemming from race and that lack of it by a racial group and thereby leading to the further restriction of it.</p>
<p>Research in the United States of America highlights that 1 in 3 Black households did not have enough credit information to generate a credit score (known as having a 'thin' credit file), while only 18% of White households had a thin file. With lower or a general lack of credit information such persons may have no choice but to access credit under extreme measures with higher interest rates and stricter terms thereby placing harder burdens in their access to finance and their ability to repay under such harsh stipulations.</p>
<p>A possible solution raised as part of the recent presidential campaign by the Democrats is the proposal of a new federally backed credit bureau premises of algorithms that included non-traditional sources of credit data such as rental history and utility bills. The use of such information may pave the way for those within the African American community to build a credit history and have credit information available to be in a better position to access finance through the traditional credit institutions.</p>www.ccbl.info.tt/blog/index.php?controller=post&action=view&id_post=192021-02-19T19:23:11+00:00Employers Conducting Credit Checks?<p>We are aware that as part of any application for the extension of credit such as a loan or the subscription to a new utility service, the institution may conduct a credit check to determine our eligibility and credit risk. However, when applying for a job, being promoted, or seeking to serve on a board, we may be presented with the request to conduct a credit check or provide a credit report. In such an instance, there is not the typical request for extension of credit or subscription to a new service and, therefore, we may question the basis under which the employer or corporation will be seeking to investigate our credit.</p>
<p>There has been an increasing desire from employers and corporations, as part of their hiring or promotion process, to have a review of a credit report to determine whether to appoint board members or hire employees. Credit assessments are performed in addition to the other background checks done.</p>
<p>Credit checks will usually be required for posts involving high financial responsibility, access to funds, security or access to confidential or sensitive information. In those situations, there will be a concern of the risk of financial impropriety, bribery or other fraudulent activity which the companies are trying to avoid by assessing the likelihood of the person becoming susceptible to such. It is believed that credit checks can therefore mitigate against such risk of theft or embezzlement by assessing the person's financial stability and debt evidenced through their credit report. It is taken that a person in financial distress may be more susceptible to misappropriation of funds and therefore when such signs are evidenced by the credit report of a potential hiree, that person may not be considered the best fit for the company.</p>
<p><br />Credit checks would usually require consent and therefore that request to conduct a credit check can be met with a refusal, but that refusal may also result in a denial of the job. Hence, the refusal of a request to conduct a credit check may be tough especially since credit checks are usually conducted after successful interviews. This, therefore, means that the candidate is usually shortlisted to be hired. Hence, if you know you are seeking a security post or where managing finances and/or having access to funds are a key component of the job description, consider being proactive and review your credit report ahead of time and correct any inaccurate information that may be present.</p>
<p> </p>www.ccbl.info.tt/blog/index.php?controller=post&action=view&id_post=182021-02-19T19:20:20+00:00Responsible Credit <p>Taking credit or in other words, incurring debt is often viewed under a negative light. There are famous sayings “Better to go to bed hungry than to wake up in debt.” or “Every time you borrow money, you are robbing your future self.” These are just a few quotes that highlight the pessimistic outlook many have on the concept of credit or debt. The daunting incidents of foreclosures or repossessions would also make it easy to understand why many adopt such a view. However, in our line of business, we see both ends of the two-sided coin that is credit and thereby recognise the benefits that credit may have when it is used and managed responsibly. We try to make credit work for you!</p>
<p><br />First, the apparent benefit of credit comes from the spending power that it can provide to many who otherwise would not have the ability to achieve their financial goals at the rate to which they would have in the absence of a loan or credit facility. Additionally, in most modern societies, there is an increasing need for a credit history to obtain not only a loan or mortgage but also to subscribe for certain basic services such as a mobile phone plan. By not having any credit history, which is usually developed by having engaged in credit transactions, a person may be placed at a disadvantage. An institution may request that a deposit be paid by that person to compensate for the uncertainty surrounding their ability to repay a debt as that ability is usually evidenced by their credit history. A credit history serves as a guide or predictor of how a person is likely to repay the current credit transaction they are seeking to enter into and without such a guide, most institutions have to resort to other means to mitigate against what they may view as a potential risk. However, we cannot ignore that with credit there is a risk when it comes to repayment. But life is full of risks and sometimes it is a question of ‘take the risk or lose the chance’.</p>
<p><br />Being responsible with the use of credit can make credit work for you and in so doing there is a need to ultimately understand the ultimate cost of credit. Prior to obtaining credit, one should ensure that they fully understand the repayment terms. Take time to go through with a representative the specific terms of repayment and consequences of missed payments. Try to understand the interest rate and determine whether the repayment terms make financial sense in considering all those factors and whether it is affordable. In determining the financial sensibility and affordability of the debt, the repayment sums should be placed in your budget, remembering to always budget for more than the minimum amount for repayment. Inquire about whether there are any additional fees as such should also be included. Also, consider whether something occurs that affects the ability to repay for three months whether this will have a detrimental impact on the ability to service the debt moving forward. As it relates to credit cards, if you are unable to clear off the amount extended by the end of the month, calculate the length of time you are likely to take to repay such with the interest that would be incurred, to determine the true cost of the credit card transaction you are seeking to make, then ask yourself whether it is worth it and whether you would likely have to use the card again and thereby increase the amount that the interest rate would be applied to. Once the debt is obtained, try to pay off more than the minimum amount and review statements of the repayment closely and do your reconciliation. </p>www.ccbl.info.tt/blog/index.php?controller=post&action=view&id_post=172020-12-09T15:46:07+00:00