13” CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
The credit information system is dependent upon fair and accurate credit reporting. 
Inaccurate credit report directly undermines the public confidence, which is essential to the 
continued functioning of the system. 
The system works within an elaborate mechanism so developed for the investigation and 
evaluation of credit worthiness, credit standing, credit capacity, character, and general reputation 
of the consumer. 
Consumer reporting agencies have assumed a vital role in assembling and evaluating 
consumer credit and other information on consumers. Therefore, there is a need to insure that 
consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and 
a respect for the consumer’s right to privacy. 
In conjunct with a proposed Act establishing a Credit Information Bureau (Senate Bill 
No. 1936, authored by Sen. Edgardo J. Angara), which if passed into law would authorize 
access of credit information from government files and other Submitting Entities, this bill aims 
to prevent abuse of such access privilege by requiring consumer reporting agencies to adopt 
reasonable procedures for meeting the needs of commerce for consumer credit, personnel, 
insurance, and other information in a manner which is fair and equitable to the consumer, with 
regard to the confidentiality, accuracy, relevancy, and proper utilization of such information. A 
Fair Creqt Reporting Act will regulate how credit-reporting agencies shall use people’s 
information. 
Passage of this Bill is earnestly sought. 


13TH CONGRESS OF THE 
REPUBQC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT REQUIRING CONSUMER REPORTING AGENCIES TO EXERCISE THEIR 
FUNCTIONS AND RESPONSIBILITIES WITH FAIRNESS, IMPARTIALITY, AND A 
RESPECT FOR THE CONSUMER’S RIGHT TO PRIVACY 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 
1. Short Title. This Act shall be known as the “Fair Credit Reporting Act”. 
SECTION 2. Declaration of Policy. It is the policy of the State to value the dignity of every 
human person and guarantees full respect for human rights. 
SECTION 3. Purpose and Coverage. This Act covers the operation of a credit information 
system in the country. Its purpose is to insure that consumer reporting agencies exercise their 
grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to 
privacy and fair reporting. It is the purpose of this Act to require that consumer reporting 
agencies adopt reasonable procedures in meeting the needs of commerce for consumer credit, 
personnel, insurance, and other information in a manner which is fair and equitable to the 
consumer, with due regard to the confidentiality, accuracy, relevancy, and proper utilization of 
such information in accordance with the requirements of this Act. 
This Act covers all participants in a credit information system, including but not limited 
to consumer reporting agencies, banks and financial institutions, credit and loan institutions, 
non-bank institutions performing quasi-banking finctions, information accessing entities, and 
public regulatory agencies responsible for consumer information data banking. 
SECTIO~ 4. De$nition of terms and rules of construction. The definitions and rules of 
construction as set forth in this section are applicable for the purposes of this Act. 
(a) The term $emon ’ means any individual, partnership, corporation, trust, estate, 
cooperative, association, government or governmental subdivision or agency, or other 
entity. 
(b) The term ’consumer ’ means an individual. 
(c) The term ‘consumer report’ means any written, oral, or other communication of any 
information by a credit information bureau on a consumer’s credit worthiness, credit 
standing, credit capacity, character, general reputation, personal characteristics, or mode 


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of living which is used or expected to be used, or collected in whole or in part, for the 
purpose of serving as a factor in establishing the consumer’s eligibility for: 
(1) credit or insurance to be used primarily for personal, family, or household 
(2) employment purposes, or 
(3) other purposes authorized under Section 5. The term does not include: 
(A) any report containing information solely as to transactions or experiences 
between the consumer and the person making the report; 
(B) any authorization or approval of a specific extension of credit directly or 
indirectly by the issuer of a credit card or similar device; or 
(C) any report in which a person who has been requested by a third party to 
make a specific extension of credit directly or indirectly to a consumer 
conveys his decision with respect to such request, if the third party advises 
the consumer of the name and address of the person to whom the request 
was made and such person makes the disclosure to the consumer required 
under Section 16. 
(d) The term ‘investigative consumer report’ means a consumer report or portion thereof in 
which information on a consumer’s character, general reputation, personal 
characteristics, or mode of living is obtained through personal interviews with neighbors, 
friends, or associates of the consumer reported on or with others with whom he is 
acquainted or who may have knowledge concerning any such items of information. 
However, such information shall not include specific factual information on a 
consumer’s credit record obtained directly from a creditor of the consumer or from a 
credit information bureau when such information was obtained directly from a creditor 
of the consumer or from the consumer. 
(e) The term ‘credit information system ’ means the collective network of authorized entities, 
led by credit information bureads that accesses credit information from government 
offices, agencies and pension funds being administered by the government, from the 
judiciary and its offices (subject to conformity by the Supreme Court), and releases 
credit information, credit reports and credit ratings to accessing entities within the 
network. 
(0 The term ‘credit information bureau’ means any person or entity which, for monetary 
fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in 
the practice of assembling or evaluating consumer reports to third parties, and which 
uses any means or facility of interstate commerce for preparing or furnishing consumer 
reports. 
(8) The term ?le ’, when used in connection with information on any consumer, means dl of 
the information on that consumer recorded and retained by a credit information bureau 
regardless of how the information is stored. 
(h) The term ‘employment purposes’ when used in connection with a consumer report 
means a report used for the purpose of evaluating a consumer for employment, 
promotion, reassignment or retention as an employee. 
(i) The term ’medical information’ means information or records obtained, with the consent 
of the individual to whom it relates, from licensed physicians or medical practitioners, 
hospitals, clinics, or other medical or medically related facilities. 
purposes, or 
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SECTION 5. Permissible purposes of reports. A credit information bureau may furnish a 
consumer report under the following circumstances and no other: 
(a) In response to the order of a court having jurisdiction to issue such an order. 


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(b) In accordance with the written instructions of the consumer to whom it relates. 
(c) To a person which it has reason to believe: 
(1) intends to use the information in connection with a credit transaction involving 
the consumer on whom the information is to be furnished and involving the 
extension of credit to, or review or collection of an account of the consumer; or 
(2) intends to use the information for employment purposes; or 
(3 j intends to use the information in connection with the underwriting of insurance 
involving the consumer; or 
(4) intends to use the information in connection with a determination of the 
consumer’s eligibility for a license or other benefit granted by a governmental 
instrumentality required by law to consider an applicant’s financial responsibility 
or status; or 
( 5 )  otherwise has a legitimate business need for the information in connection with a 
business transaction involving the consumer. 
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SECTION 6. Obsolete information. (a) Except as authorized under Subsection (b), no credit 
information bureau may make any consumer report containing any of the following items of 
information: 
(1) Suits and judgments which, from date of entry, antedate the report by more than 
seven years or until the governing statute of limitations has expired, whichever is 
the longer period. 
(2) Paid tax liens which, from date of payment, antedate the report by more than 
seven years. 
(3) Accounts placed for collection or charged to profit and loss, which antedate the 
report by more than seven years. 
(4) Records of arrest, indictment, or conviction of crime, which, from date of 
disposition, release, or parole, antedate the report by more than seven years. 
(5) Any other adverse item of information which antedates the report by more than 
seven years. 
(b) The provisions of Subsection (a) are not applicable in the case of any consumer credit 
(1) a credit transaction involving, or which may reasonably be expected to involve, a 
(2) the underwriting of life insurance involving, or which may reasonably be 
(3) the employment of any individual at an annual salary which equals, or which may 
report to be used in connection with: 
principal amount of P3 million or more; 
expected to involve a face amount of P3 million or more; or 
reasonably be expected to equal P2 million, or more. 
SECTION 7. Disclosure of investigative consumer reports. (a) A person may not procure or 
cause to be prepared an investigative consumer report on any consumer unless: 
(1) it is clearly and accurately disclosed to the consumer that an investigative 
consumer report including information as to his character, general reputation, 
personal characteristics, and mode of living, whichever is applicable, may be 
made, and such disclosure 
(A) is made in writing and mailed, or otherwise delivered to the consumer, 
not later than three days after the date on which the report was first 
requested, and 


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(B) includes a statement informing the consumer of his right to request the 
additional disclosures provided for under Subsection (b) of this 
section; or 
(2) the report is to be used for employment purposes for which the consumer has not 
specifically applied. 
@) Any person who procures or causes to be prepared an investigative consumer report on 
any consumer shall, within a reasonable time after the receipt of the written request made 
by the consumer concerned of the disclosure required by Subsection (a)(l), shall make a 
complete and accurate disclosure of the nature and scope of the investigation requested. 
This disclosure shall be made in writing, mailed or otherwise delivered to the consumer 
not later than five days after the date on which the request for such disclosure was 
received from the said consumer or such report was first requested, whichever is later. 
(c) No person may be held liable for any violation of Subsection (a) or (b) of this section if 
he shows by mere preponderance of evidence that at the time of the violation, he 
observed and followed reasonable procedures to assure compliance with Subsection (a) 
or (b). 
SECTiON 8. Compliance procedures. (a) Every credit information bureau shall maintain 
reasonabie procedures designed to avoid violations of Section 6 of this Act and to limit the 
furnishing of consumer reports only for the purposes listed under Section 5. These procedures 
shall require that prospective users of the information identify themselves, certify the purposes 
for which the information is sought, and certify that the information will be used for no other 
purpose. Every credit information bureau shall make a reasonable effort to verify the identity of 
a new prospective user and the uses certified by such prospective user prior to furnishing the 
latter of a consumer report. No credit information bureau may furnish a consumer report to any 
person if it has reasonable grounds o believe that the consumer report will not be used for any of 
the purposes listed in Section 5. 
(b) Whenever a credit information bureau prepares a consumer report, it shall follow reasonable 
procedures to ensure maximum possible accuracy of the information concerning the individual 
about whom the report relates. 
SECTION 9. Disclosures to governmental agencies. Notwithstanding the provisions of Section 
5, a credit information bureau may furnish information concerning any consumer, but only 
limited to the name, address, former addresses, places of employment, or former places of 
employment, to governmental agencies. 
SECTION IO. Disclosures to consumers. 
(a) Every credit information bureau shall, upon request and proper identification of any 
(1) The nature and substance of all information (except medical information) in its 
files at the time of the request. 
(2) The sources of the information; except that the sources of information acquired 
solely for use in preparing an investigative consumer report and actually used for 
no other purpose need not be disclosed: Provided, that in the event an action is 
brought under this Act, such sources shall be available to the plaintiff under 
appropriate discovery procedures in the court in which the action is brought. 
consumer, clearly and accurately disclose to the said consumer the following: 
(3) The recipients of any consumer report on the consumer 


(A) for employment purposes within the two-year period preceding the 
(B) for any other purpose within the six-month period preceding the 
(4) The dates, original payees, and amounts of any’checks upon which is based any 
adverse characterization of the consumer included in the file at the time of the 
disclosure. 
(b) The requirements of Subsection (a) respecting the disclosure of sources of information 
and the recipients of consumer reports do not apply to information received or consumer 
reports furnished prior to the effective date of this Act except to the extent that the 
matter involved is contained in the files of the credit information bureau on that date. 
request, and 
request. 
SECTION I 1 . Conditions of disclosure to consumers. 
(a) A credit information bureau shall make the disclosures required under Section 10 during 
(b) The disclosures required under Section 10 shall be made to the consumer: 
normal business hours and only after a reasonable notice. 
(1) In person, if he appears in person and furnishes proper identification; or 
(2) By telephoiie, if he has made a written request, with proper identification, for 
telephone disclosure and the tool charge, if any, for the telephone call is prepaid 
by or charged directly to the consumer. 
(c) Any credit information bureau shall provide trained personnel to explain to the consumer 
any information furnished to him pursuant to Section 10. 
(d) The consumer shall be permitted to be accompanied by one other person of his choosing, 
w o shall furnish reasonable identification. A credit information bureau may require the 
bureau to discuss the consumer’s file in such person’s presence. 
(e) Except as provided in Sections 7 and 8, no consumer may bring any action or proceeding 
in the nature of defamation, invasion of privacy, or negligence with respect to the 
reporting of information against any credit information bureau, any user of information, 
or any person who furnishes information to a credit information bureau, based on 
information disclosed pursuant to Sections 10, 11 or 16, except as to false information 
furnished with malicious intent to injure such consumer. 
c il 
sumer to furnish a written statement granting permission to the credit information 
SECTION 12. Procedure in case of disputed accuracy. 
(a) If the completeness or accuracy of any item of information contained in his file is 
disputed by a consumer and such dispute is directly conveyed to the credit information 
bureau by the consumer, the credit information bureau shall, within a reasonable period 
of time, reinvestigate and record the current status of that information unless it has 
reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant. 
If after such reinvestigation such information ‘is found to be inaccurate or can no longer 
be verified, the credit information bureau shall promptly delete such information. The 
presence of contradictory information in the consumer’s file does not in and of itself 
constitute reasonable grounds for believing the dispute is frivolous or irrelevant. 
(b) If the reinvestigation does not resolve the dispute, the consumer may file a brief 
statement setting forth the nature of the dispute. The credit information bureau may limit 
such statement to not more than one hundred words, if it provides the consumer with 
assistance in writing a clear summary of the dispute. 
(c) Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe 
that it is frivolous or irrelevant, the credit information bureau shall, in any subsequent 
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consumer report containing the information in question, clearly note that it is disputed by 
the consumer and provide either the consumer’s statement or a clear and accurate 
codification or summary thereof. 
(d) Following any deletion of information which is found to be inaccurate or whose 
accuracy can no longer be verified, or any notation as to disputed information, the credit 
information bureau shall, at the request of the consumer, furnish notification that the 
item has been deleted or that the statement, codification or summary pursuant to 
Subsection (b) or (c), to any person specifically designated by the consumer who has 
witbin two years prior thereto received a consumer report for employment purposes, or 
within six months prior thereto received a consumer report for any other purpose, which 
contained the deleted or disputed information. The credit information bureau shall 
clearly and conspicuously disclose to the consumer his rights to make such a request. 
Such disclosure shall be made at or prior to the time the information is deleted or the 
consumer’s statement regarding the disputed information is received. 
SECTION 13. Charges for certain disclosures. A credit information bureau shall make all 
disclosures pursuant to Section 10 and furnish all consumer reports pursuant to Section 12 (d) 
without charge to the consumer if, within thirty days after receipt by such consumer of a 
notification pursuant to Section 16 or notification from a debt collection agency affiliated with 
such credit information bureau stating that the consumer’s credit rating may be or has been 
adversely affected, the consumer makes a request under Section 10 or 12(d). Otherwise, the 
credit information bureau may impose a reasonable charge on the consumer for making 
disclosure to such consumer pursuant to Section 10, the charge for which shall be indicated to 
the consumer prior to making disclosure; and for furnishing notifications, statements, 
summaries, or codifications to person’s designated by the consumer pursuant to Section 12(d), 
the charge for which shall be indicated to the consumer prior to furnishing such information and 
shall not exceed the charge that the credit information bureau would impose on each designated 
recipient for a consumer report, except that no charge may be made for notifying such persons of 
the deletion of information which is found to be inaccurate or which can no longer be verified. 
SECTION 1 4. Public record information foor employment purpose. A credit information bureau 
which furnishes a consumer report for employment purposes and which for that purpose 
compiles and reports items of information on consumers which are matters of pubIic record and 
are likely to have an adverse effect upon a consumer’s ability to obtain employment shall: 
(a) at the time such public record information is reported to the user of such consumer 
report, notifi the consumer of the fact that public record information is being reported by 
the credit information bureau, together with the name and address of the person to whom 
such information is being reported; or 
(b) maintain strict procedures designed to insure that whenever public record information 
which is likely to have an adverse effect on a consumer’s ability to obtain employment is 
reported, it is complete and up to date. For purposes of this paragraph, items of public 
judgments shall be considered up to date if the current public record status of the item at 
the time of the report is reported. 
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record relating to arrests, indictment, conviction, suits, tax liens, and outstanding 
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SECTION 1 5. Restrictions on investigative consumer report. Whenever a credit information 
bureau prepares an investigative consumer report, no adverse information in the consumer 
report (other than information which is a matter of public record) may be included in a 
subsequent consumer report, unless such adverse information has been verified in the process of 


I 
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making such subsequent consumer report, or the adverse information was received within the 
three-month period preceding the date the subsequent report is furnished. 
SECTION 16. Requirement on users of consumer report. 
(a) Whenever credit or insurance for personal, family, or household purposes, or 
employment involving a consumer is denied or the charge for such credit or insurance is 
increased either wholly or partly because of information contained in a consumer report 
from a credit information bureau, the user of the consumer report shall so advise the 
consumer against whom such adverse action has been taken and supply the name and 
(b) Whenever credit for personal, family, or household purposes involving a consumer is 
denied or the charge for such credit is increased either wholly or partly because of 
information obtained from a person other than a credit information bureau bearing upon 
the consumer’s credit worthiness, credit standing, credit capacity, character, general 
reputation, personal characteristics, or mode of living, the user of such information shall, 
within a reasonable period of time, upon the consumer’s written request for the reasons 
for such adverse action received within sixty days after learning of such adverse action, 
disclose the nature of the information to the consumer. The user of such information 
shall clearly and accurately disclose to the consumer his right to make such written 
request at the time such adverse action is communicated to the consumer. 
(c) No person shall be held liable for any violation of this section if he shows by mere 
preponderance of evidence that at the time of the alleged violation, he observed and 
followed reasonable procedures to ensure compliance with the provisions of Subsections 
address of the credit information bureau making the report. 
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( 4  and @I. 
SECTION I 7. Civil liability for willful noncompliance. Any credit information bureau or user 
of information which willfully fails to comply with any of the requirements imposed under this 
Act with respect to any consumer is liable to that consumer in an amount equal to the sum of: 
(a) any actual damages sustained by the consumer as a result of the failure; 
@) such amount of punitive damages as the court may allow; and 
(c) in the case of any successful action to enforce any liability under this Section, the costs 
of the action together with reasonable attorney’s fees as determined by the court. 
SECTION 18. Civil liability for negligent noncompliance. Any credit information bureau or 
user of in rmation which is negligent in failing to comply with any requirement imposed under 
this Act with respect to any consumer is liable to that consumer in an amount equal to the sum 
Of: 
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(a) any actual damages sustained by the consumer as a result of the negligence; 
(b) in the case of any successful action to enforce any liability under this Section, the costs 
of the action together with reasonable attorney’s fees as determined by the court. 
SECTION i 9. Jurisdiction of courts; limitation of actions. An action to enforce any liability 
created under this Act may be brought in any court o f  competent jurisdiction, within two years 
from the date on which the liability arises, except that where a defendant has materially and 
willhlly misrepresented any information required under this Act to be disclosed to an individual 
and the information so misrepresented is material to the establishment of the defendant’s 
after discovery by the individual of the misrepresentation. 
liability to that individual under this Act, the action may be brought at any time within two years 
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SECTION 20. Obtaining information under false pretenses. Any person who knowingly and 
willfully obtains information on a consumer from a credit information bureau under false 
pretense shall be fined not less than Php 10,000.00 but not more than Php 1,000,000.00 or 
imprisoned by not more than one year, or both, per violation per person. 
SECTION 2 1. Unauthorized disclosures by ofleers or employees. Any officer or employee of a 
credit information bureau who knowingly and willfully provides information concerning an 
individual from the agency’s files to a person not authorized to receive that information shall be 
fined not less than Php 10,000.00 but not more than Php 1,000,000.00 or imprisoned not more 
than one year, or both, per violation per person. 
SECTION 22. Implementing Rules and Regulations. The Bangko Sentral ng Pilipinas shall 
issue the regulations prescribing details for implementation of this law. 
SECTION 23. Repealing Clause. All acts and parts of acts inconsistent herewith are hereby 
repealed or amended accordingly. 
SECTION 24. Effectiviq. This Act shall take effect fifteen (15) days after its publication in two 
(2) newspapers of general circulation. 
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Approved, 
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