The Bank of Ghana (BoG) has withdrawn the license of credit reference bureau firm, HudsonPrice Data Solutions.
It takes effect from November 21, 2022.
A letter to banks, Specialized Deposit-Taking Institutions and Non-Bank Financial Institutions seen by Joy Business attributed the action to what the BoG described as persistent non-compliance with the requirements of the Credit Reporting Act 2007.
What industry players should do
The BoG in the letter, asked , financial sector players to stop submitting data on the credit history of their clients to HudsonPrice Data Solution with immediate effect.
The Central Bank also asked all subscribers of HudsonPrice Service to engage the services of other credit bureaus to remain compliant with the Act 726 not later than December 10, 2022.
State of Credit Reference Bureaus
Following the BoG’s action, Ghana is now left with two credit reference bureaus namely XDS Data and Dun and Bradstreet.
Some of the credit reference bureaus had in the past complained about difficulties in securing data from some banks to analyse credit history of their clients.
The development forced the regulator to issue a directive to all commercial banks to strictly comply with the Credit Reporting Act in the country.
The BoG issued its first license to the XDS Data with the expectation that the workings of the bureau would help reduce the cost of credit in the country, and also help expose debtors who still go ahead to apply for loans from different financial institutions.
Details on HudsonPrice Data solutions
HudsonPrice Data Solutions was established in 2008, but started operations in 2011 as the second credit reference bureau to be licensed in the country.
According to the company, it has experience of Multi National Credit reporting technological and with a financial partner operating in over 100 companies.
The bureau aims to contribute in building a banking system with high efficiency and stability through the provision of accurate and comprehensive credit information using sophisticated global technology.
HudsonPrice Data Solutions was seeking to be the premier provider of ancillary services to the financial sector in providing information solutions to organisations and consumers.
The company announced that it hoped to track the latest development in banking sector and financial knowledge, pursue continuous training and maintaining capabilities in applying scientific, innovative standards and legislation and to the local banking.