FTC Calls for Major Overhaul of Jamaica’s Credit Reporting Industry

By BATV News Business Desk

KINGSTON, Jamaica — July 2025
A newly released study by the Fair Trading Commission (FTC) has revealed significant structural flaws, anti-competitive practices, and barriers to financial inclusion within Jamaica’s credit reporting industry. The report—“Competition Assessment of the Credit Reporting Market in Jamaica”—outlines urgent reforms and policy imperatives aimed at creating a more competitive, transparent, and inclusive system that better serves Jamaican consumers and lenders alike.

The State of Credit Reporting in Jamaica

Jamaica’s credit reporting industry is currently composed of three licensed credit bureaus:

• CRIF Information Bureau Jamaica Limited
• EveryData Jamaica Limited
• Credit Information Services (CIS)

However, only two are actively operational. CIS has not issued any credit reports since 2022, effectively reducing functional competition in the market.

Credit bureaus collect financial data from a range of sources (called Providers), such as banks, credit unions, microfinance institutions, and utility companies. This information is then compiled into credit reports, which lenders, landlords, employers, and others (Users) use to assess financial reliability.

But according to the FTC, the system is far from working optimally.

Critical Problems Uncovered

1. Limited Competition and High Entry Barriers

The study identifies that dominant bureaus benefit from first-mover advantages through exclusive data-sharing agreements with major financial institutions. These arrangements severely limit new entrants from gaining access to comprehensive borrower data, stifling innovation and maintaining high prices for credit reports.

In some cases, newer bureaus must spend up to 5–7 years building credibility and relationships with Providers just to survive.

2. Incomplete and Inaccurate Credit Information

Many borrowers are unfairly penalized due to inaccurate or outdated credit reports. In 2023 alone, nearly 5,863 consumer complaints were lodged, compared to 3,063 in 2018—an alarming 91% increase over five years.

Further, free annual credit reports—intended to give consumers insight into their financial standing—are often delivered in confusing formats that are difficult to interpret without financial literacy training.

3. Financial Exclusion of Underserved Populations

A major concern is the exclusion of low-income and informally employed Jamaicans from the formal credit system. Informal credit arrangements, such as partner plans (ROSCAs) or hire-purchase agreements, are not routinely captured in credit databases. This results in “invisible borrowers” who may have solid payment histories but remain locked out of loans, mortgages, and other services that require a credit report.

FTC’s Five Bold Recommendations

To correct these systemic issues, the FTC has proposed five key policy imperatives, each modeled after successful practices in other countries:

1. Universal Data Exchange

Mandate that all Providers must submit credit information to all licensed credit bureaus. This would ensure a level playing field and dismantle the current monopoly-like advantages.

Used in: Philippines, Sri Lanka, South Korea, and UEMOA countries (West Africa)

2. Data Reciprocity

Require that any institution accessing credit reports must also contribute their own credit data. This creates a fairer information ecosystem and enhances report accuracy.

Used in: European Union, United Kingdom, Mexico, South Africa

3. Standardized Information Technology Platforms

Implement a common, secure, and interoperable system for data sharing among credit bureaus and Providers to lower operational barriers and reduce costs.

Used in: Australia, South Africa, Canada

4. Improved Dispute Resolution

Establish binding standards and timelines for credit bureaus to resolve consumer disputes, ideally within 30 days.

Used in: United States (via FCRA), EU (via GDPR), India

5. Inclusion of Underserved Populations

Mandate or strongly encourage the reporting of informal credit data (e.g., from hire-purchase companies, utilities, and partner plans). This will allow more Jamaicans to build credit histories.

Used in: Kenya, Brazil, Mexico

Economic and Social Impact

According to the FTC, fully implementing these imperatives (referred to as Option 4) could:

• Save Jamaican consumers approximately JMD 54 million over three years.
• Improve access to affordable credit for thousands of Jamaicans.
• Increase competition and innovation in the credit bureau market.
• Provide more reliable tools for lenders to assess risk.

Ultimately, these reforms would advance Jamaica’s National Financial Inclusion Strategy and contribute to Vision 2030—the country’s roadmap to becoming a developed economy.

What Happens Next?

The FTC has laid out four options for policymakers, with Option 4 (comprehensive reform) being its recommended path forward. Maintaining the status quo, it warns, will leave the market inefficient, consumers vulnerable, and many Jamaicans financially excluded.

Quote from the FTC

“Adopting these recommendations will unlock a more competitive and consumer-friendly credit reporting ecosystem. This is essential not only for fair lending but for promoting economic mobility and resilience for all Jamaicans.”
— FTC Policy Report, June 2025

Final Word

This groundbreaking report has laid bare the inefficiencies and inequities in Jamaica’s credit reporting system. With tangible solutions on the table and strong international precedents, all eyes are now on Jamaican policymakers.

The opportunity is clear: reform the system, empower consumers, and build a more inclusive financial future.

For feedback: contact the BATV Editorial Division at: info@batvja.com