Clean slate law

Credit bureaus will have 6 months to eliminate the negative report of users.

All credit information consultation by users of the system must be free of charge.

There will be no reports in credit bureaus during the COVID-19 health emergency.

After the endorsement given by the plenary of the House of Representatives to the Law of a clean slate, habeas data for the financial sector, it is known that Colombians who pay their obligations for which they have been reported, in the next 12 months, will remain with such negative information in the data banks for a maximum of six months.

“Risk centers will have three months to eliminate the negative reports of debtors who have exceeded 10 years.”

Once this period is completed, the bad rating must be automatically removed by the credit bureaus.

Benefits of the Clean Slate Law

1.One-time amnesty for the person who gets up to date (or has already done so) to get out of the negative report. Their credit rating will be reestablished and they will be able to count on formal credit both in commercial establishments and financial entities.

2.Victims of impersonation will be removed from the negative report by simply filing a complaint with the Attorney General’s Office.

3.Credit bureaus will have a period of 6 months to eliminate the negative report of users.

4.Debtors of Icetex, small agricultural loans, young people and women, may be removed from the report once they cancel their debt.

5.A prior communication must be issued to the user in case of any type of report, which will also apply to any e-commerce operation.

6.For debts below $130,000, entities will have to send the user a couple of communications prior to the negative report in order to avoid the sanction.

7.It will not be possible to make inquiries in the credit bureaus for people who are looking for a job, nor will it be possible to charge for the inquiries and the rating cannot be affected.

8.There will be no reports in the credit bureaus during the COVID-19 sanitary emergency and during the 6 months following its termination.

9.Small and medium-sized enterprises may request the suspension of negative reports for a period of up to 6 months in order to be able to access credit.

10.Farmers who have reports for agricultural credits of less than 10 minimum wages ($9,800,000) may request a suspension of the negative report for up to six months.

11.Companies in the tourism sector that are brought up to date during the 6 months of the entry into force of the law will benefit from the immediate withdrawal of the negative report.

12.Any consultation of credit information by users of the system must be free, through all access channels and at any time, without this generating any effect on their qualification.

13.In the event of a false report that affects the credit history of a user and that such report requires the payment of the debt by the victim, the account holder must file a request for correction with the credit bureau and report the crime of fraud, if he/she considers it appropriate.

14.The financial entity, once it receives the request, must compare the documents that prove the crime within 10 days, and the negative data must be modified by the source, reflecting that the account holder is in the process of impersonation.

15.If after 15 days the operator has not given a prompt resolution, it will be understood that the request has been accepted. Otherwise, the applicant will have the option of requesting sanctions for the entity before the SIC or the Superfinanciera.

16.Credit Bureaus will have three months to eliminate the negative reports of debtors that have exceeded 10 years, counted from the date of the default report informed by the user.

17.Financial institutions must justify to the user why they deny a loan. For no reason may they deny credit based on the analysis of credit history.

18.The sources of information must report to the operator, at least once a month, any changes in the data so that the operator can update them as soon as possible (update and rectify the data).

19.A free application will be created for holders to register their e-mail address and receive communications in less than five working days when a new obligation is reported in their credit history.

Source: Actualícese