{"id":2927,"date":"2024-04-27T09:02:55","date_gmt":"2024-04-27T15:02:55","guid":{"rendered":"https:\/\/belegalabogados.mx\/?p=2927"},"modified":"2024-04-27T09:02:57","modified_gmt":"2024-04-27T15:02:57","slug":"how-the-credit-bureau-works-in-mexico","status":"publish","type":"post","link":"https:\/\/belegalabogados.mx\/en\/publicaciones\/mexican-law\/how-the-credit-bureau-works-in-mexico\/","title":{"rendered":"How the Credit Bureau works in Mexico"},"content":{"rendered":"

Mexicans and foreigners’ notion of the ‘Credit Bureau’ is often erroneous. For this reason, when they have a problem with it, they do not know how and with whom to act. Most think it\u2019s a government system created to control their business activity. Also, due to being affiliated with the government, there is not much they can do when they have a problem with the ‘Credit Bureau’. These ideas are inaccurate; we will show why in this entry.<\/p>\n\n\n\n

True Nature<\/strong><\/p>\n\n\n\n

The truth is that the ‘Credit Bureau’ is not a centralized system controlled by the government but is made up of private entities called Credit Information Companies, which are regulated by the Law to Regulate Credit Information Companies<\/a>, which implies that individuals who meet the requirements contemplated in the law and other legal provisions, may become be part of this system.<\/p>\n\n\n\n

On the other hand, ‘Bur\u00f3 de Cr\u00e9dito’<\/em> is the commercial name under which the first Credit Information Society in Mexico was established, that is, Trans Union de M\u00e9xico, S.A, Credit Information Society. From that name, this term became popular and was used colloquially instead of credit information system.<\/p>\n\n\n\n

Moreover, while it\u2019s true that the law was reformed in 2014 so that the government could create a parastatal entity that was part of this system, it is also true that currently, the only entities authorized to be part of the Bur\u00f3 de Cr\u00e9dito<\/em> are the companies called Trans Uni\u00f3n de M\u00e9xico, S.A, Sociedad de Informaci\u00f3n Crediticia; C\u00edrculo de Cr\u00e9dito, S.A, Sociedad de Informaci\u00f3n Crediticia and Dun & Bradstreet, S.A. Sociedad de Informaci\u00f3n Crediticia.<\/p>\n\n\n\n

Finally, it\u2019s important to highlight that entities authorized as Credit Information Companies are obliged to exchange consumer credit data among themselves before payment of a compensatory fee so that their reports are more complete and the system is as truthful as possible.<\/p>\n\n\n\n

Purpose<\/strong><\/p>\n\n\n\n

The purpose of the Credit Information Companies in Mexico is the collection of information and credit history of people and companies, the establishment of preventive and explanatory labels in their reports, as well as the risk rating service for granting credit according to the parameters issued by the National Banking and Securities Commission (Comisi\u00f3n Nacional Bancaria y de Valores)<\/em><\/p>\n\n\n\n

To make this possible, authorized entities gather people’s consumption movements through the exchange of information with the institutions that contract their services in order to offer them indiscriminately to the rest of their clients.<\/p>\n\n\n\n

Who Can Retain the Credit Bureau in Mexico?<\/strong><\/p>\n\n\n\n

According to the law, only financial entities (banks, insurance institutions, popular savings, credit banks, credit unions, etc.), commercial companies, and SOFOMES <\/em>(Multiple-Purpose Financial Companies) can use this system and acquire the services of the Credit Bureau.<\/p>\n\n\n\n

Credit Report\u2019s Access<\/strong><\/p>\n\n\n\n

The fact that Credit Information Companies enter into contract agreements with private entities to provide consumer information does not imply that they can share that data without restrictions. On the contrary, by law, users of the \u201cCredit Bureau\u201d must require consumers’ express consent to access their credit history. The authorization must be by handwritten signature or by reliable electronic means. If authorized by the consumer, this authorization can be valid for one to two years.<\/p>\n\n\n\n

The above authorization is excepted when requested by the Bank of Mexico, the National Banking and Securities Commission, the judicial authorities, and the federal tax authorities when they request it for tax purposes to tackle money laundering or to punish the financing of terrorism.<\/p>\n\n\n\n

On the other hand, express authorizations to access a person’s credit history in the case of commercial companies must be stored directly by the Credit Information Companies for up to five years. Financial entities and SOFOMES must also retain the authorizations for a maximum period of one year.<\/p>\n\n\n\n

Credit Report\u2019s Access Without Authorization<\/strong><\/p>\n\n\n\n

Financial secrecy is violated if a financial institution, SOFOME, or commercial company can access a person’s credit report without express authorization. With this, in the case of the first two entities, a hearing must be given to the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) and, concerning commercial companies, to the Federal Consumer Prosecutor’s Office (PROFECO) so that they impose the corresponding fines. In more severe cases, even filing criminal complaints.<\/p>\n\n\n\n

Consumers\u2019 Rights<\/strong><\/p>\n\n\n\n

According to the law, consumers or clients of credit services shall have the following rights:<\/p>\n\n\n\n