New law limits negative credit history to 3 years to protect consumers

- Thursday, September 22, 2011

New law limits negative credit history to 3 years to protect consumers

Credit information agencies operating in El Salvador will only be able to hold negative personal credit data for up to three years under the text of a new law seen by BNamericas.

The law on credit history information services, which comes into effect October 25, seeks to regulate the operation of credit information providers.

The law also prohibits agencies such as market leader Equifax from including data on "basic services" payments such as utilities and rubbish disposal.

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Salvadorian consumers will have a right to freely obtain their credit history details from credit agencies within three days of requests.

The government has argued that the law will protect consumers from errors on the part of credit agencies and lenders, which harm their economic prospects.