NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S. No. 3003
7
25 JUN-4 P5 33
Rt CtiVr L I ■
Introduced by SENATOR MARK A. VILLAR
AN ACT
ABOLISHING THE CREDIT INFORMATION CORPORATION, 
TRANSFERRING ITS FUNCTIONS TO THE BANGKO SENTRAL NG 
PILIPINAS, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 9510 OR 
THE "CREDIT INFORMATION SYSTEMS ACT"
EXPLANATORY NOTE
According to the World Bank, credit reporting systems are critical in an economy 
for expanding access to finance, extending financial inclusion, and supporting the 
development of stable financial systems. In the Philippines, the Credit Information 
Corporation (CIC), created by Republic Act No. 9510 or the "Credit Information System 
Act", serves as the country's Public Credit Registry (PCR) to act as the central registry 
or repository of credit information and to provide access to reliable and standardized 
information on credit history and the financial condition of borrowers. Additionally, the 
CIC also offers value-added services as a Private Credit Bureau (PCB), providing credit 
history data.
Under Republic Act No. 10149 or the "GOCC Governance Act of 2011" and 
Executive Order No. 292 or the "Administrative Code of 1987" the President has the 
power to re-organize, merge, or streamline the operations of GOCCs upon review and 
recommendation of the Governance Commission for GOCCs (GCG), particularly when 
their regulatory and commercial functions conflict.
A 2020 study by the Makati Business Club and the Policy and Economic 
Research Council found that the CIC's performance was undermined by its dual role 
as both a regulator and a PCR, along with its commercial activities as a PCB. To 
address this issue, the study recommended transferring the CIC's functions to the 
Bangko Sentra! ng Pilipinas (BSP), which is aligned with the World Bank's report that 
a vast majority of countries assign regulation of and authority over credit reporting 
services to their central banks.


This approach is not oniy sound, but aiso appropriate, since estabiishing and 
maintaining an efficient credit information system is consistent with the BSP's mandate 
to reguiate and supervise credit-granting businesses and strengthens the BSP's poiicy 
formuiation capabiiities in pursuit of financiai stabiiity.
Thus, this biii seeks to institutionaiize the transfer of the CIC's functions to the 
BSP by aboiishing the CIC, iiquidating its assets and iiabiiities, and disposing of its 
sharehoidings under the supervision of the GCG. The bill likewise streamlines credit 
information processes, enhances regulatory oversight, encourages minimal cost for 
credit data, protects consumer rights, and ensures fair competition. In this way, a 
more efficient credit reporting system may be pursued so that its benefits may 
ultimately redound to the good of the Filipino people.
In view of the foregoing, the approval of this bill is earnestly sought.
MARK A. VILLAR


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S. No. 3003
oS ti}f
25 JUN-4 P5 33
U! ILr. . e
Introduced by Senator MARK A. VILLAR
AN ACT
ABOLISHING THE CREDIT INFORMATION CORPORATION, 
TRANSFERRING ITS FUNCTIONS TO THE BANGKO SENTRAL NG 
PILIPINAS, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 9510 OR 
THE "CREDIT INFORMATION SYSTEMS ACT"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section. 1. Short Title. -This Act shall be known as the "New Credit Information
2 
System Act".
3 
Sec. 2. Declaration of Policy. - The State recognizes the need for a centralized
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credit information system to enhance credit availability by providing cost-effective
5 
mechanisms and reducing reliance on collateral. The State is committed to offering
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credit data at minimal cost, protecting consumer rights, and ensuring fair competition.
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An efficient credit information system will help financial institutions reduce credit risk,
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promoting a healthier and more stable financial system.
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To achieve these goals, the powers and functions of the Credit Information
10 
Corporation (CIC) shall be transferred to the Bangko Sentral ng Pilipinas (BSP),
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streamlining credit information processes and enhancing regulatory oversight.
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The State recognizes that the establishment and maintenance of an efficient
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credit information system: (i) is consistent with the mandate of the BSP to effectively
14 
regulate and supervise credit granting businesses, among others, as may be
15 
determined by the Monetary Board; (ii) is key to financial stability which is a shared
16 
objective of the BSP alongside relevant government agencies; and (iii) will strengthen
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the policy formulation of the BSP, specifically in the areas of banking and credit.
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The State recognizes further, that the data from the credit information system
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would serve as basis for the policy directions to be undertaken by the BSP in terms of
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money, banking and credit and would assist it in the maintenance of monetary and
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financial stability in the country.
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Sec. 3. Definition of Terms. - For purposes of this Act:
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(a) "Accessing Entity" refers to any submitting entity or any other entity
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authorized by the BSP to access credit data from the BSP.
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(b) "Borrower" refers to a natural or juridical person, including any local
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government unit (LGU), its subsidiaries and affiliates that applies for and/or
10 
avails of a credit facility.
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(c) "BSP" refers to the Bangko Sentrai ng Piiipinas, created under Republic Act
12 
No. 7653, as amended.
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(d) "CIC" refers to the Credit Information Corporation.
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(e) "Credit Data" refers to positive and negative information provided by a
15 
borrower to a submitting entity in connection with the application for and
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availment of a credit facility and any information on the borrower's
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creditworthiness in the possession of the submitting entity and other factual
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and objective information related or relevant thereto in the submitting entity's
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data files or that of other sources of information; Provided, That in the absence
20 
of a written waiver duly accomplished by the borrower, credit data shall exclude
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confidential information on bank deposits and/or clients funds under Republic
22 
Act No. 1405 or the "Law on Secrecy of Bank Deposits", Republic Act No. 6426
23 
or "The Foreign Currency Deposit Act", Republic Act No. 8791 or "The General
24 
Banking Law of 2000", Republic Act No. 8367 or the "Revised Non-Stock
25 
Savings and Loan Association Act of 1997", Republic Act No. 3844 or the
26 
"Agricultural Land Reform Code", Executive Order No. 81, Series of 1986, as
27 
amended by Republic Act No. 8523 or "The Revised Charter of the Development
28 
Bank of the Philippines", Republic Act No. 7353 or "An Act Providing for the
29 
Creation, Organization and Operation of Rural Banks and for Other Purposes",
30 
as amended and Republic Act No.7906 or the "Thrift Banks Act of 1995".
31 
(f) "Credit Facility" refers to any loan, credit line, guarantee, or any other form
32 
of financial accommodation from a submitting entity; Provided, That for


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purposes of this Act, deposits in banks shaii not be considered a credit faciiity 
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 estabiished and defined 
ranking system.
(h) "Credit Report" refers to a summary of consoiidated and evaiuated 
information on creditworthiness, credit standing, credit capacity, character and 
generai reputation of a borrower;
(i) "Government Lending Institutions" refers to government financial 
institutions (GFIs) and government-owned and controlled corporations (GOCCs) 
primarily engaged in lending activities.
(j) "Governor" refers to the Governor of the BSP.
(k) "Monetary Board" refers to the Monetary Board of the BSP.
(l) "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.
(m) "Non-Accessing Entity" refers to an entity other than a Submitting Entity, 
Special Accessing Entity or Borrower that is authorized by the BSP to access 
credit data from a Special Accessing Entity.
(n) "Outsource Entity" refers to any accredited third-party provider to whom 
the BSP may outsource the processing and consolidation of credit data 
pertaining to a borrower or issuer of debt or convertible securities under such 
qualifications, criteria and strict confidentiality guidelines that BSP shall 
prescribe and duly publish; Provided, that an Outsource Entity or any of its 
affiliates, shall neither be an Accessing Entity nor a Special Accessing Entity.
(o) "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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(p) "Relevant Government Agencies" refers to the Securities and Exchange
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Commission, Department of Finance, Department of Trade and Industry,
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Insurance Commission, and the Cooperative Development Authority.
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(q) "Special Accessing Entity" refers to a duly accredited private corporation
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engaged primarily in the business of providing credit reports, ratings and other
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similar credit information products and services.
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(r) "Submitting Entity" refers to any entity that provides credit facilities such as,
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but not limited to, banks, quasi-banks, trust entities, non-stock savings and
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loan associations, investment houses, financing companies, cooperatives,
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nongovernmental, micro-financing organizations, credit card companies,
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insurance companies, and government lending institutions. Submitting Entities
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shall also refer to entities that have information relevant to establish the
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creditworthiness of borrowers, such as, but not limited to, credit collection
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agencies and utility service providers.
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(s) "Transition Team" refers to the team consisting of the CIC personnel chosen
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by the BSP to facilitate and assist in the transfer of the CIC functions and control
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over the credit information system to the BSP.
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Sec. 4. Abolition of the Credit Information Corporation. - The CIC created by
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virtue of Republic Act No. 9510 or the "Credit Information System Act" is hereby
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abolished.
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All positions in CIC are considered abolished; Provided, That pursuant to
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Section 5 of this Act, CIC shall retain personnel relevant in assisting in the liquidation
23 
and undertaking of other residual tasks, such as administration and maintenance of
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records, resolution of pending legal issues and disputes, and settlement of outstanding
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obligations with respect to CIC's service contracts. The emoluments of the retained
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personnel shall be provided by CIC in accordance with relevant rules and regulations
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of the Governance Commission for Government-Owned or -Controlled Corporations
28 
(GCG); Provided, further, that the retained personnel shall also be entitled to
29 
separation incentive pay upon completion of their assigned tasks in accordance with
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Section 6 of this Act.
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Sec. 5. Liquidation of Assets and Liabilities and Disposition of Shareholdings in
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CIC. - The GCG, in accordance with existing laws and regulations, shall be responsible


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for the liquidation of assets and disposition of shareholdings of the CIC: Provided, That
2 
the liquidation of the assets and liabilities shall not exceed five (5) years from the
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effectivity of this Act: Provided, further, That any asset or liabilities that may be
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transferred to the BSP is subject to the approval of the Monetary Board: Provided,
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finaiiy. That if upon liquidation of the CIC it is determined that the value per share is
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less than par as when initially invested by shareholders, the BSP shall reimburse them
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in an amount not exceeding their initial investment.
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Sec. 6. Grant of Separation Incentive Pay to Affected Officers and Empioyees.
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- The CIC shall be authorized to grant a separation incentive pay (SIP) to affected
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officers and employees holding permanent positions with the following rates:
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Government Service 
Rates
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First 20 years 
1.00 x (Monthly Basic Salary) x No. of Years
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20 years and 1 day to 30 years 
1.25 x MBS x No. of Years
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30 years and 1 day and above 
1.50 x MBS x No. of Years
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The SIP authorized herein shall be charged against the available corporate
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funds of the CIC and such other funding sources that the Department of Budget and
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Management may identify, subject to existing budgeting, accounting and auditing
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laws, rules, and regulations.
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Sec. 7. Transfer of Functions of the CIC to the BSP. - All powers, duties, and
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functions vested by law in the CIC not inconsistent with the provisions of this Act shall
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be deemed transferred to the BSP.
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All credit data received and consolidated by the CIC pursuant to Republic Act
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No. 9510 and the credit information system are hereby transferred to the BSP.
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The BSP shall create a Transition Team from the employees of the CIC to
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facilitate and assist in the transfer of the CIC functions and control over the credit
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information system to the BSP. The emoluments of the members of the Transition
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Team shall be provided by the BSP, subject to applicable laws, rules, and regulations.
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Sec. 8. Powers and Functions. - In furtherance of the policy set forth In Section
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2 and in view of the transfer of the functions of the CIC to the BSP under Section 7 of
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this Act, the BSP shall have the following powers and functions:
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(a) To compel all Submitting Entities to submit to the BSP all credit data that
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tends to update and/or correct the credit status of borrowers on a regular basis;


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(b) To include other entities that have information relevant to establish the
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creditworthiness of borrowers to be subject to compulsory participation, in accordance
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with such standards and rules that the BSP may prescribe;
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(c) To use the collected credit data of borrowers to correct/update the credit
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status of said borrowers in the credit information system;
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(d) To have unrestricted access to credit and other relevant information from
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government offices, judicial and administrative tribunals, prosecutorial agencies, and
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other related offices, as well as pension plans and other retirement funds administered
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by the government. GOCCs and private entities;
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(e) To release credit data on the borrower, subject to the provisions of Section
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10 of this Act; and
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(f) To accredit Accessing Entities, Special Accessing Entities, and Outsource
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Entities in accordance with such rules and regulations as the BSP may prescribe for
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authorizing access to BSP's credit information system.
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Sec. 9. Borrower's Rights. - Borrowers shall have the following rights under this
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Act:
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(a) To be notified of the Submitting Entity's obligation to submit the borrower's
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credit data to BSP and the disclosure thereof to the BSP, subject to the provisions of
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this Act and its implementing rules and regulations;
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(b) To know the causes of refusal of the application for credit facilities or
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services from a financial institution that uses the credit data as basis or ground for
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such a refusal;
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(c) To have ready and immediate access to one's own credit data. In case of
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erroneous, incomplete, or misleading credit data, the subject borrower shall have the
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right to dispute the erroneous, incomplete, outdated, or misleading credit data before
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the BSP, which shall investigate and verify the disputed information. Disputed
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information shall be updated or corrected after the investigation and verification. The
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borrower and the Accessing Entities and Special Accessing Entities who have received
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such information shall be informed of the corresponding update or correction within
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five (5) working days from the date the BSP conclusively resolves the update or
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correction of the information. For this purpose, the BSP shall use a simplified dispute
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resolution process to fast-track the settlement or resolution of disputed credit data;


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(d) To access their own credit data free of charge, subject to the rules and
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regulations prescribed by the BSP; and
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(e) To have negative information in the borrower's files corrected and updated
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within the period prescribed by the BSP from the time of payment, liquidation, or
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settlement
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Sec. 10. Submission of Credit Data to the BSP. - Pursuant to Section 8 of this
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Act, all Submitting Entities are hereby directed to submit credit data to the BSP
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pursuant to its prescribed rules and regulations; Provided, That non-compliance of this
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directive shall be subject to the sanctions provided under Sections 13 and 14 of this
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Act.
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Sec. 11. Accessing Credit Data. - Accessing Entities, Special Accessing Entities,
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and Outsource Entities when utilizing the credit information system, are required to
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adhere strictly to the standards, rules, and regulations prescribed by the BSP. All
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Accessing Entities, Special Accessing Entities, and Outsource Entities shall ensure that
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their use of credit data is compliant with the data protection policies, confidentiality
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requirements, and other regulatory provisions set by the BSP and other relevant laws;
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Provided, That any misuse, unauthorized access, or violation of these regulations shall
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be subject to the penalties provided under Sections 13 and 14 of this Act.
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Fees related to access of credit data by Accessing Entities and Special Accessing
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Entities shall be provided for by the BSP in accordance with its rules and regulations.
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Sec. 12. Administrative Sanctions. - The Monetary Board or the Governor may
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impose applicable administrative sanctions upon any Submitting Entity, Accessing
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Entity, Special Accessing Entity, or Outsource Entity, and/or their directors, officers,
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or employees, for any of the following violations:
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(1) Non-submission of reports, delay, and/or erroneous reporting;
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(2) Willful making of a false or misleading statement;
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(3) Submission of a false or misleading document to the BSP;
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(4) Non-performance of other obligations provided under this Act: or
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(5) Willful failure or refusal to comply with, or violation of, any order,
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instruction, rule, or regulation issued by the Monetary Board, or any order, instruction,
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or ruling by the Governor.
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The following administrative sanctions shall be imposed, whenever applicable:


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(a) Fines in amounts as may be determined by the Monetary Board to be
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appropriate, but in no case to exceed One million pesos (Phpl,000,000.00) for each
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transactional violation, or in the case of a continuing offense. One hundred thousand
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pesos (Phpl00,000.00) per calendar day, taking into consideration the attendant
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circumstances, such as the nature and gravity of the violation or irregularity and the
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size of the institution: Provided, That the Governor is hereby authorized, at his
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discretion, to impose fines not in excess of One hundred thousand pesos
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(Phpl00,000.00) for each transactional violation or in the case of a continuing offense,
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Thirty thousand pesos (Php30,000.00) per calendar day, which shall be final and
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executory until reversed, modified, or lifted by the Monetary Board on appeal; and/or
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(b) Suspension of privileges or access to the credit information system or any
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BSP credit database as may be determined by the Governor.
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Sec. 13. Pena! Sanctions. - Any person who willfully violates any of the
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provisions of this Act or the rules and regulations promulgated by the BSP pursuant
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to any of the provisions of this Act shall, upon conviction, suffer a fine of not less than
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Fifty thousand pesos (Php50,000.00) but not more than Two million pesos
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(PhP2,000,000.00) or imprisonment of not less than two (2) year nor more than ten
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(10) years, or both, at the discretion of the court.
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Sec. 14. Impiementing Ruies and Reguiations. - The BSP shall promulgate the
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rules and regulations for the effective implementation of this Act within one hundred
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eighty (180) days from its effectivity.
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Sec. 15. Transitory Cause. - Nothing in this Act shall operate to affect the
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validity or legality of any right, duty, or obligation created by or in respect of the CIC
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prior to the effectivity this Act.
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Pursuant to Section 7 of this Act, the BSP and the CIC shall finalize within three
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(3) months from the effectivity of this Act the transitional arrangements for the
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transfer of the CIC functions and control of its credit information system operations to
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the BSP. Such transition period may be extended as mutually agreed upon by the CIC
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and the BSP to a period not exceeding another three (3) months.
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Sec. 16. Funding. - Upon the completion of the transfer to the BSP of the CIC's
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functions, all credit data, the credit information system, and the costs to operate the
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credit information system shall be provided by the BSP.


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Sec. 17. Separability Clause. - If any provision of this Act is declared invalid or
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unconstitutional, the remainder thereof not otherwise affected shall remain in full force
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and effect.
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Sec. 18. Repealing Clause. - Republic Act No. 9510 is hereby repealed by this
5 
Act. All other laws, executive orders, rules and regulations, or parts thereof
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inconsistent with any provision hereof are hereby repealed or modified accordingly.
7 
Sec. 19. Effectivity. - This Act shall take effect fifteen days (15) after its
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publication in the Official Gazette or in a national newspaper of general circulation.
Approved,