Cooperatives must submit client data to CIC
These small financial firms are still covered by the new credit registry.
This after the Court of Appeals upheld the constitutionality of the inclusion of cooperatives in submitting credit data of member-borrowers to the Credit Information Corporation (CIC).
The CA decision was in response to an appeal filed by the Baguio Benguet Community Credit Cooperative (BBCCC), questioning the power of CIC to require the require submission of client transaction records.
“[E]ven if credit cooperatives extend loans only to their members or that cooperatives are autonomous, they are not exempt from the mandatory coverage of the law because they provide credit facilities to their members,” the CA said.