The Habeas Data Financiero bill, also known as the ‘clean slate’ law in credit bureaus, It entered into force this Friday, October 29, after President Iván Duque sanctioned the rule.
(Court has 60 days to decide a ‘clean slate’ future).
It is estimated that more than 10 million citizens will be able to recover their credit lives and erase their negative reports in the credit bureaus, which becomes a very important boost for the economic recovery of the country.
But, What benefits does it bring? To whom would it apply? What are the objectives of the initiative?
Here is a list of the most important points of this project.
(The ‘clean slate’ law enters into force).
ABECÉ OF THE ‘BLURRED AND NEW ACCOUNT’
– One-time amnesty for those who update in the first 12 months of the law or have already done so previously. They will leave the Risk Centers in a maximum of six months. Students with educational credits from Icetex, small producers, rural youth, rural women and victims of the armed conflict who extinguish their debt will immediately come out of the negative report.
– People who have debts less than 15% of the minimum wage (less than $ 136,279) will receive two communications before being negatively reported (with 20 days of difference between one and another communication).
– The credit rating should be normalized immediately when the negative report is removed.
– Consulting credit information will always be free at all times and on all channels and will not lower the rating.
– Consultation with Risk Centers to grant a job is prohibited. (Except for employees in the financial sector).
– Victims of impersonation are protected. With the sole communication and accompanying at least the copy of the criminal complaint of fraud to the financial institution, the negative report will be eliminated, leaving a legend that indicates “victim of personal falsehood”.
(Approved draft of ‘clean slate’).
– The time of the negative report in the Risk Centers will be twice the time of the default and up to a maximum of four years. It remains as it is in the current Habeas Data law.
– Credit bureaus are ordered to create a free digital application of public access to all data holders, where alerts are generated when acquiring new obligations, this to mitigate the risk of impersonation. (The information must be updated maximum 5 days after the obligation is acquired).
– In the credit market there will continue to be enough information that allows credit institutions to make decisions.
– The credit history of natural and legal persons is maintained, both for people with good payment habits and for people with bad payment habits.
– To grant a product or a loan, the entities of the financial system may not exclusively use the credit history. They should consider other factors or elements of judgment that affect the risk study. In addition, they are required to indicate in writing the reasons for rejecting an application.
– Negative reports caused between the start of the health emergency caused by Covid-19 and December 31, 2020 will be eliminated., provided that the holders of the obligation have attempted a restructuring of the obligation. (If the default continues after December 31, 2020, the report will be resumed).
No entity may require the owner to submit additional documents or procedures.
In summary, if the holder catches up with the arrears of his credit, the obligation is already prescribed or a payment agreement is reached with the financial institution, he only has to wait for the amnesty terms to be met so that the Risk Centers delete the report.
Likewise, for Icetex debtors, small producers, rural youth, rural women and victims of the armed conflict by extinguishing their debt will immediately come out of the negative report, without having to wait for any term.
BRIEFCASE
