THE Fair Trading Commission (FTC) is calling for a centralised credit information-sharing system to overhaul the nation’s fragmented credit reporting market, citing persistent barriers to competition, unreliable data, and the exclusion of vulnerable borrowers.

In a comprehensive study released in June, the FTC said, “A centralised credit information sharing system is crucial to expanding the market for credit services.” The agency argues that such a system would lower costs for lenders, improve the accuracy of credit assessments, and expand access to loans for individuals who are currently shut out of the formal financial sector.

Fragmented Data, Stifled Competition

The Jamaican credit reporting industry is currently served by three licensed bureaus — Credit Information Services (CIS), CRIF Information Bureau Jamaica Limited, and EveryData Jamaica Limited. However, CIS has not issued a credit report since 2022, effectively leaving the market to two dominant players.

The FTC’s investigation found that many lenders and credit information providers share data exclusively with one or two bureaus, rather than all. This selective sharing has led to what the FTC describes as “significant first-mover advantages” for incumbents, making it difficult for new entrants to gain a foothold. The report noted, “Inequitable access to a crucial input (data-exchange/sharing agreements) constitutes a significant impediment to expansion in the market for credit reporting”.

One bureau, CIS, attributed its exit from the market to “inability to access credit information from important providers,” highlighting the impact of exclusive data-sharing contracts and incompatible technology platforms.

Consumers Pay the Price

Borrowers are feeling the effects of the system’s shortcomings. The FTC documented a surge in complaints about credit report errors, with nearly 6,000 complaints lodged in 2023 — double the number from five years earlier. “A growing number of consumer complaints relate to inaccurate, outdated, or incomplete credit information,” the report said.

The agency also flagged that the free credit reports provided to consumers are “not user-friendly or easily understood”, and that dispute resolution processes are “slow and lack transparency”. One borrower, frustrated by the process, told the FTC they had to file a dispute three times to remove a discharged loan from their report.

Financial Exclusion and Information Gaps

The FTC found that many Jamaicans — especially those using informal credit systems such as hire-purchase agreements or “partner plans”— are not captured in the credit bureaus’ databases. “Many underserved borrowers are excluded from formal credit access due to limited data on their credit behaviour,” the study stated.

Microfinance companies, which often serve high-risk or low-income clients, are also under-represented in data sharing, with many operating outside the formal licensing system. The FTC warned that the absence of these records perpetuates financial exclusion and market inefficiency.

The Case for Centralisation

To address these issues, the FTC is urging policymakers to mandate universal data exchange: “Policymakers should mandate that any provider that submits data to at least one credit bureau must submit data to all credit bureaus,” the report recommends. This would ensure all bureaus have equal access to comprehensive credit data, levelling the playing field and improving the reliability of credit reports.

The agency also calls for data reciprocity, requiring that any user of credit reports must also contribute their own data, and for the adoption of standardised information technology platforms to facilitate efficient, secure, and cost-effective data sharing.

International Models and Policy Options

The FTC points to international examples, noting that the Philippines, Sri Lanka, South Korea, and Hong Kong have all implemented centralised or universal data-sharing frameworks. In the Philippines, for example, the Credit Information System Act mandates that all financial institutions submit credit data to a central authority, which then disseminates it to licensed bureaus.

The FTC outlines four policy options, ranging from maintaining the status quo to implementing a comprehensive reform package. The agency’s preferred approach — Option 4 — would see Jamaica adopt all five key imperatives: universal data exchange, data reciprocity, standardised IT infrastructure, improved dispute resolution, and inclusion of underserved populations.

Potential Benefits

The FTC estimates that these reforms could save Jamaican consumers approximately $54 million over three years, increase competition, reduce costs, and extend credit access to those currently excluded from the system. “Adopting the recommended policy imperatives — particularly through Option 4 — will foster a more inclusive, competitive, and consumer-friendly credit reporting ecosystem, enhancing economic opportunity and financial resilience across the nation,” the FTC concluded.

Next Steps

The FTC is seeking feedback from stakeholders before finalising its recommendations. The agency’s push for a centralised system comes at a critical time, as Jamaica seeks to align its financial infrastructure with international best practices and its own Vision 2030 development goals.

For now, the message from the FTC is clear: “The current environment restricts competition, limits data reliability, and excludes vulnerable populations.” Without decisive reform, the agency warns, Jamaica’s credit reporting market will continue to fall short of its potential — leaving many borrowers behind.

EveryData is one of two active credit bureaus in Jamaica.

The Fair Trading Commission is urging for a centralised data system to be created to help sort out market flaws. .