Credit Report & Score
The Decree-Law was issued after comprehensive and in-depth studies and comparisons were done by Al Etihad Credit Bureau (AECB). These were conducted on the reality of Credit Reports and Information in the country and the requirements needed for the next phase, in order to boost core economic sectors in the UAE. AECB prepared these studies as the competent authority to implement the provisions of this law, along with all parties related to credit information, including the Ministry of Finance, the Ministry of Justice and the Central Bank of the UAE.
H.H. Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, issued the Decree-Law No. 8 of 2020 on amending certain provisions of Federal Law No. (6) of 2010 concerning credit information. This Decree-Law seeks to raise credit confidence, achieve financial and credit stability and enhance the business environment in the country. The amendment adopts the best global standards in place that contribute to improving comprehensive credit reporting and enabling more accurate calculations of Credit Scores and indicators, allowing lenders and service providers to better assess risks and make better decisions in lending and service provision.
Upon completing the connection and receiving the information from the Courts, AECB developed its system to enable Credit Reports and Scores access using Arabic names – in line with the court’s Arabic-written information. This will allow AECB’s subscribers to obtain court information in the credit reports in addition to the information currently included in them.
The credit information shows the obligations of convicted parties in civil cases and payments status, through a periodic automatic update, and contributes to improving the accuracy and credibility of credit reports and scores for both individuals and companies. Increased accuracy when calculating credit scores will enable companies, such as banks and financial institutions, to better onboard requests and take risk-controlled credit decisions.
RAK Courts Department is the first court and Dubai Courts is the second court in the UAE to provide credit information to the Bureau. AECB is currently communicating with other courts in the country to provide credit information concerning performing parties in financial claims.
The move comes as part of AECB’s endeavour to stimulate the UAE’s credit environment and expand the network of credit information providers. It is also in line with AECB’s strategy to cover all types of financial obligations under credit information, in accordance with the provisions of the recently-amended Credit Information Law.
Delays in paying telecom services bills are reported by telecom companies to AECB. These appear in your Credit Report and may negatively impact your Credit Score.
Federal Law No. (6) of 2010 on Credit Information and its amendments in Federal Decree Law No. (8) of 2020 requires that entities accessing your credit report must have your consent in advance. Only lenders can request reports on their borrowers without their consent.
Like with banks and finance companies, this is decided by each telecom company according to their internal processes and policies.
Telecom companies may decide to utilise AECB’s Credit Reports and Scores to proactively monitor their customers’ credit worthiness in line with what banks and finance companies already do with their customers.