Decree No. 10/2010/ND-CP on credit information activities

DECREE

Regarding credit information activities

___________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

Pursuant to the Enterprise Law dated November 29, 2005;

Considering the proposal of the Governor of the State Bank of Vietnam,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates credit information activities; rights and obligations of related organizations and individuals.

2. The credit information activities of the State Bank of Vietnam are not within the scope regulated by this Decree.

Article 2. Applicability

1. Credit information company.

2. Credit institutions.

3. Borrower.

4. Related organizations and individuals.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Credit information are data, figures, facts, and news related to borrowers at credit institutions.

2. Borrowers are small and medium-sized enterprises as defined by law, individuals, households with loan relationships or loan needs, discounting negotiable instruments with terms, financial leasing, and other forms of credit provided by credit institutions, or have relationships with other organizations in asset leasing transactions, installment purchases, deferred payments, and other transactions with interest rate, term, rental fee, and security conditions for debt repayment obligations.

3. Credit institution is a credit organization operating under the Law on Credit Institutions; other organizations providing asset leasing services, installment purchases, deferred payments, and other services with interest rate, term, rental fee, and security conditions for debt repayment obligations.

4. Credit information activity is the collection, processing, storage of credit information, and provision of credit information products by the credit information company.

5. Credit information product are reports, publications created by the credit information company based on collected credit information to provide to credit institutions, other organizations, and individuals.

6. Credit information company is a business established in accordance with the Enterprise Law and operates in compliance with the provisions of this Decree; when naming the business, it must include the phrase "credit information."

Article 4. Purpose of credit information activities

1. Sharing information among credit institutions to prevent and mitigate risks in credit activities, contributing to ensuring the safety of banking operations.

2. Supporting credit institutions in expanding and developing credit activities.

3. Supporting borrowers in accessing credit capital from credit institutions, contributing to promoting economic and social development.

Article 5. Principles of credit information activities

1. Strictly comply with legal regulations.

2. Ensure honesty and objectivity in credit information activities.

3. Protect the interests and benefits of organizations and individuals in providing credit information and exploiting credit information products.

Article 6. Prohibited acts in credit information activities

1. Illegally collecting, providing, and using information within the scope and list of state secrets.

2. Intentionally distorting the content of credit information, affecting the legitimate rights and interests of related organizations and individuals.

3. Exchanging credit information with unrelated organizations and individuals, to incorrect targets, illegally.

4. Taking advantage of credit information activities for personal gain, infringing upon the interests of the state, rights, and legitimate benefits of organizations and individuals.

5. Obstructing lawful credit information collection and exploitation activities of organizations and individuals.

6. Using credit information products provided to entities not specified in Article 14 of this Decree.

Chapter II

CREDIT INFORMATION COMPANY

Article 7. Conditions for Issuing a Certificate of Eligibility for Credit Information Activities

1. Having adequate infrastructure for information technology, meeting operational requirements.

2. Having a minimum charter capital of thirty billion Vietnamese dong.

3. Having a management team consisting of professionals in finance, banking, and information technology.

4. Having a feasible business plan and not engaging in any other business outside the credit information activities prescribed in this Decree.

5. Having at least twenty commercial banks committed to providing credit information, and these banks shall not commit to another credit information company.

6. Having an agreement on the procedures for collecting, processing, storing, and providing credit information between the credit information company and the committed credit institutions.

Article 8. Procedures for Issuing the Certificate of Eligibility for Credit Information Activities

1. The application dossier for issuing the Certificate of Eligibility for Credit Information Activities submitted to the State Bank of Vietnam shall include:

a) Application form for the Certificate of Eligibility for Credit Information Activities;

b) Copy of Business Registration Certificate;

c) Documents proving the conditions stipulated in Article 7 of this Decree.

2. Time limit for issuing the Certificate of Eligibility for Credit Information Activities.

Within thirty working days from the date of receiving a complete and valid application dossier, the State Bank of Vietnam shall issue the Certificate of Eligibility for Credit Information Activities to the credit information company. In case the State Bank of Vietnam does not issue the Certificate of Eligibility for Credit Information Activities, it must provide a written response to the credit information company and clearly state the reasons.

Article 9. Revocation of the Certificate of Eligibility for Credit Information Activities

1. The credit information company shall have its Certificate of Eligibility for Credit Information Activities revoked in the following cases:

a) Failure to maintain the conditions stipulated in Article 7 of this Decree;

b) Violation of any prohibited acts stipulated in Article 6 of this Decree;

c) Not conducting credit information activities within twenty-four months from the date of issuance of the Certificate of Eligibility for Credit Information Activities.

2. If the credit information company violates Clause 1 of this Article for the first time, it shall be temporarily deprived of the Certificate of Eligibility for Credit Information Activities for six months. During the temporary revocation period, the credit information company must immediately cease credit information activities and rectify the violations.

The State Bank of Vietnam shall not extend the revocation period of the Certificate of Eligibility for Credit Information Activities. If the credit information company rectifies the violations during the temporary revocation period, the State Bank of Vietnam will consider and reissue the Certificate of Eligibility for Credit Information Activities to the credit information company.

3. If the temporary revocation period expires and the credit information company has not fully rectified the violation stipulated in Point a, Clause 1 of Article 9 of this Decree, the Certificate of Eligibility for Credit Information Activities shall be permanently revoked.

When the State Bank of Vietnam permanently revokes the Certificate of Eligibility for Credit Information Activities, the credit information company must immediately cease credit information activities and complete the dissolution procedures within six months from the date the State Bank of Vietnam issues the decision.

4. In the event that the credit information company is dissolved, the credit information retained at the credit information company shall be treated as assets and handled as follows:

a) Transfer to another credit information company with the consent of the credit institutions that provided the credit information;

b) If not transferred, the credit information company may transfer to the State Bank of Vietnam or self-organize the destruction under the supervision of the State Bank of Vietnam.

Article 10. Rights and Obligations of Credit Information Companies

1. Rights of Credit Information Companies

a) Enter into contracts with organizations and individuals regarding the collection and provision of credit information in accordance with the law;

b) Exchange credit information with other credit information companies;

c) Charge service fees for credit information products;

d) Other rights as prescribed by law.

2. Obligations of Credit Information Companies

a) Ensure the purposes, principles, and content of credit information activities;

b) Maintain the conditions stipulated in Article 7 of this Decree throughout the operation;

c) Report on credit information activities as required by the State Bank of Vietnam;

d) Fulfill credit information service contracts properly and completely;

đ) Ensure the rights and legitimate interests of organizations and individuals in accessing credit information;

e) Do not violate the prohibited acts stipulated in Article 6 of this Decree;

g) To perform other obligations as prescribed by law.

Chapter III

CREDIT INFORMATION ACTIVITIES

Article 11. Collection of Credit Information

1. Credit information to be collected includes:

a) Identification information of the borrowing customer and persons related to the borrowing customer (if any), including: father, mother, wife or husband, children;

b) Information on credit provision history, leasing assets, purchasing goods on installment, delayed payments, and other transactions with conditions regarding interest rates, payment deadlines, and lease fees;

c) Information on debt repayment history, amounts due or not yet due, payment deadlines, and credit limits of the borrowing customer;

d) Information on guarantees for the borrowing customer's debt obligations;

đ) Other relevant information that must ensure non-violation of the borrowing customer's rights and does not include information about deposit accounts and information within the scope and list of state secrets.

2. From the date this Decree takes effect, credit institutions shall only be permitted to provide credit information to the Credit Information Company as specified in Clause 1 of this Article when there is agreement with the borrowing customer. Credit information that has not been agreed upon with the borrowing customer arising before the effective date of this Decree is not bound by this regulation.

Article 12. Processing of Credit Information

1. The process of checking, classifying, and updating credit information must ensure that it does not distort the nature and content of the collected credit information.

2. Based on the collected and stored source of credit information, the Credit Information Company proceeds to analyze, evaluate, and compile information to create credit information products.

3. The Credit Information Company may only use the credit information of the borrowing customer from the most recent five years to create credit information products.

Article 13. Retention of Credit Information

1. Credit information must be securely retained, confidentially protected, and safeguarded against potential accidents and disasters, and prevent unauthorized external access and intrusion.

2. Credit information about the borrowing customer must be retained for a minimum of five years from the date the Credit Information Company receives it.

Article 14. Provision of Credit Information Products

The Credit Information Company provides credit information products to the following entities:

1. Credit institutions that provide information to the Credit Information Company for consideration of credit provision to the borrowing customer, monitoring credit accounts, debt recovery, and other purposes allowed by law.

2. Borrowing customers to check their own information at the company's data repository or to supplement documentation for credit application.

3. Other Credit Information Companies to serve organizations and individuals as prescribed by law.

4. State agencies as prescribed by law.

Chapter IV

RIGHTS AND OBLIGATIONS OF ORGANIZATIONS AND INDIVIDUALS RELATED TO THE ACTIVITIES OF THE CREDIT INFORMATION COMPANY

Article 15. Rights and Obligations of Credit Institutions

1. To provide complete, accurate, and timely credit information to the Credit Information Company according to the contract signed between both parties.

2. To notify the borrowing customer of the contents of the information provided when signing a contract with the Credit Information Company.

3. To utilize credit information products from the Credit Information Company in accordance with the provisions of Article 14 of this Decree.

4. To cooperate with the Credit Information Company to detect and handle errors in collected, retained, and provided credit information; resolve complaints about credit information from the borrowing customer.

5. To perform other rights and obligations as prescribed by law.

Exploit free credit information about themselves once a year, including credit information indicators at point a, c, d, and e clause 1 Article 7 of this Circular.

1. Borrowing customers are entitled to receive free credit information about themselves from the Credit Information Company at least once a year if requested.

2. Borrowing customers have the right to request the Credit Information Company to review and adjust their credit information if errors are found.

3. Borrowing customers have the right to complain if they discover errors in their credit information as stipulated in Article 19 of this Decree but may not abuse this right to make false complaints causing harm to credit institutions and the Credit Information Company.

4. During the complaint resolution process, borrowing customers have the obligation to provide complete and truthful credit information to credit institutions or the Credit Information Company.

Chapter V

STATE MANAGEMENT OF CREDIT INFORMATION ACTIVITIES

Article 17. State Management Authority over Credit Information Activities

The State Bank of Vietnam assists the Government in uniformly managing state affairs concerning credit information activities throughout the country.

Article 18. Contents of State Management over Credit Information Activities

1. Drafting and submitting to competent authorities for issuance, or issuing within its authority, normative legal documents on credit information activities.

2. Issuing and revoking certificates of eligibility for credit information activities of credit information companies.

3. Inspecting the operations of credit information companies.

4. Guiding credit information companies in developing comprehensive and modern credit information systems.

Chapter VI

SETTLEMENT OF COMPLAINTS AND HANDLING OF VIOLATIONS

Article 19. Customer Borrower Complaint Procedures

1. Upon discovering errors in credit information, borrower customers must submit complaints in writing along with relevant documents to the credit information company requesting corrections. If a lending organization has made a decision to grant or deny credit based on erroneous credit information that is disadvantageous to the borrower customer, the borrower customer may request the credit information company to notify the error to the recipient of the credit information. The lending organization, upon receiving the correction notice from the credit information company, must review its initial decision and inform the borrower customer of the new decision.

2. Upon receiving a complaint from a borrower customer under Clause 1 of this Article, the credit information company must check its system and respond to the complaint within five working days from the date of receipt of the complaint. If the error arises from the processing of information by the credit information company, the credit information company must immediately implement the correction request of the borrower customer. The response to the complaint from the credit information company can be sent via postal service or through electronic means.

3. If the credit information company determines that the error in credit information originates from information collected at the lending organization, the credit information company must respond to the complaint by clearly identifying the source of the error within the time limit specified in Clause 2 of this Article and proactively coordinate with the lending organization to correct the error within ten working days.

4. Within fifteen working days from the date of receipt of the response from the credit information company, if the borrower customer is not satisfied with the content of the complaint response, the borrower customer has the right to request the credit information company to organize mediation.

Within twenty working days from the date of receipt of the mediation request from the borrower customer, the credit information company must organize mediation regarding the complaint contents, with participants including: the credit information company, the borrower customer, and the related lending organization.

5. If dissatisfied with the mediation result between the parties or after twenty days from the expiration of the response deadline stipulated in Clause 2 or Clause 3 of this Article without receiving a response, the borrower customer may proceed with arbitration or court procedures according to the provisions of the law.

Article 20. Handling Violations in Credit Information Activities

1. A person who commits a violation of the law in the field of credit information shall be subject to disciplinary action, administrative penalties, or criminal liability pursued, depending on the nature and severity of the violation. If damage is caused, compensation must be provided in accordance with the provisions of the law.

2. An organization that commits a violation of the law in the field of credit information shall be subject to administrative penalties, suspension of operations, depending on the nature and severity of the violation. If damage is caused, compensation must be provided in accordance with the provisions of the law and this Decree.

Chapter VII

IMPLEMENTING PROVISIONS

Article 21. Effective Date

This Decree takes effect from April 15, 2010.

Article 22. Responsibility for enforcement

1. The Governor of the State Bank of Vietnam is responsible for guiding the implementation of this Decree.

2. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities shall be responsible for implementing this Decree.

3. Within twelve months from the date this Decree takes effect, businesses operating credit information services must complete the necessary conditions for operation as stipulated in Article 7 of this Decree. Beyond this period, if a business fails to meet the operational conditions and has not been issued a Certificate of Eligibility for Credit Information Operations by the State Bank of Vietnam, the business must cease its credit information activities and switch to a suitable business sector./.