The long awaited and controversial Israeli Credit Data Law, 5776-2016 has come into force on April 12, establishing an overall framework for collecting credit data into a Central Credit Register, operated by the Bank of Israel (Israel’s central bank), and providing it from there onward to Credit Bureaus that engage in credit rating assessments.
The new law requires institutions such as banks, payment card Issuers, the electric utility company and the postal bank to report to the Register information about individuals regarding their payments, requests to receive credit, accounts, restrictions imposed by law due to nonpayment, and more.
The law’s declared purpose is to enhance competition in the retail credit market, expand access to credit, reduce discrimination in the extension of credit, reduce economic gaps, and create an anonymous information pool that will serve the Bank of Israel in carrying out its functions. The law also establishes arrangements for the collection and management of individuals’ credit data solely in their capacity as business owners.
CLICK HERE to read an unofficial English translation of the new Credit Data Law.
