Central Bank: utility payments will be gradually incorporated into credit records

In 2006, the central bank established a national uniform corporate and individual credit information database, which automatically produces a "credit report" for those who have opened a bank card or secured a bank loan.

On October 13, the Legislative Affairs Office under the State Council released proposed "regulations on credit information management" for public comment. The regulations mention the bad credit record preservation period issue for the first time. Credit agencies are not permitted to release or use either personal bad credit records after five years have passed since the bad credit behavior/event or personal criminal records after seven years have passed since the execution of punishment.

Banking insiders noted that the regulations are not only similar to international practice but also relatively practical. If the preservation period is too short, credit records will not properly play their warning role; if it is too long, the punishment will be too strict for unintentional bad credit behavior.

The draft regulations define the scope of credit information including basic information for individuals, legal entities and other organizations, such as identity certification, profession and residential address. The central bank has also said that credit records will incorporate personal utility bill payment and tax arrears information.

The most important component of credit records is transaction information including the transaction records of individuals, legal entities and other organizations in social and economic activities such as applying for credit, using debit or quasi-credit cards, credit sales, guarantees and contract executions. In addition, credit information also includes social and public information closely related to credit status, such as administrative penalties, forcible enforcement by courts and enterprises' environmental protection information.

By People's Daily Online