The State Bank of Pakistan ( SBP) has developed guidelines on a dispute resolution mechanism for all the licensed credit bureaus operating in Pakistan.

The SBP is of the view that consumer grievance handling mechanism is a crucial element of fair treatment of consumer regime.

Under the processes and procedures for the establishment of DRM, credit bureaus are required to devise a dispute resolution policy, duly approved by the BoD, and delineate detailed procedures to deal with disputes.

Credit bureaus should establish a separate function independent of business lines to deal with disputes/ complaints. The dispute resolution function should report to an appropriate senior executive and must be adequately resourced to ensure its effectiveness.

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SBP says that credit bureaus are required to take steps to ensure that information furnished through credit information report (CIR) is accurate, complete, not misleading, and up-to-date. Credit bureaus are also obligated to put in place necessary safeguards (e.g. system checks, procedures, and automated processes) to ensure the security and safety of customer information.

All disputes whether lodged by the customer directly or forwarded by the State Bank of Pakistan should be recorded in the centralized DRM. An acknowledgment should be sent to the complainant via SMS, email, or surface mail confirming the receipt of the dispute/ complaint at the credit bureau.

SBP directed credit bureaus that the acknowledgment must be sent to customers within 48 hours of receipt of the dispute/complaint. Whereas, the final reply must be sent to the customer within 10 working days from the date of receipt of the dispute/complaint. However, in the case where detailed investigations are required, the final reply may take up to 30 working days from the date of receipt of the dispute.

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Credit bureaus must ensure the availability of a mechanism where, besides complaints, consumer feedback is also received on their products and/or services.

The SBP says that credit bureaus are required to suitably categorize each dispute logged in the DRM and conduct periodic analysis to identify issues and bring improvement in their systems, processes and procedures.

Credit bureaus are advised to retain all the records related to disputes/complaints for at least 12 months and shall report the performance of their DRM to SBP.

The guidelines will be effective from October 01, 2021. SBP has directed licensed credit bureaus to comply with the instructions in letter and spirit and submit.