Q: Should the bank notify me as guarantor of a loan facility if my credit report was accessed when (i) the loan facility was applied for; and (ii) when the existing loan facility is reviewed? What if I am the account holder instead?
A: (i) Under Clause 2.13 of the Code, a credit provider shall in notifying the individual its decision in connection with an application for consumer credit by that individual give notice of the fact that a credit report of that individual had been considered. It follows that where the application for consumer credit is not taken out by an individual, the credit provider is not obliged to notify the proposed guarantor that his credit report is being considered.
(ii) Under Clause 2.14 of the Code, a credit provider shall take such reasonably practicable steps to notify the individual concerned before his credit report is accessed for review purpose. Thus, if the review access is made on both the borrower and the guarantor, the credit provider should notify both of them before making the access. What are practicable steps to be taken shall be determined on a case-by-case basis and some banks as credit provider would give notification on a regular basis. No notification shall however be necessary where the review request is initiated by the individual or where there is already in place, at the time of access, a loan restructuring arrangement on outstanding debts (Clause 2.14.1.3 and 2.14.1.4 of the Code).