Under which act is a Credit Bureau governed?
Q. A Credit Bureau is governed by which of the following act?- Published on 16 Feb 17
a. Securities and Exchange Board of India Act, 1992
b. Reserve Bank of India Act, 1934
c. Credit Information Companies (Regulation) Act of 2005
d. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
ANSWER: Credit Information Companies (Regulation) Act of 2005
A Credit Bureau is governed by the Credit Information Companies (Regulation) Act of 2005
A credit bureau is a collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States,
- a credit reference agency in the United Kingdom;
- a credit reporting body in Australia;
- a credit information company (CIC) in India;
- a credit registry in the Philippines.
It is not the same as a credit rating agency; it collects and gathers information from different sources.