Clean Records

Sep 7, 2006 (LBO) – The credit information has started to clear the credit records of former defaulters who have repaid their loans, a top official said. General Manager of the Sri Lanka Credit Information Bureau N P H Amarasena says about 67,000 names have been taken off the list of defaulters.

The credit information bureau introduced several features to encourage former defaulters who repay their loans.

Before this move, all previous defaults appeared in a borrower’s credit record even after a loan was later repaid in full or a settlement reached with the bank.

Borrowers who finish paying back defaulted loans would now be removed from the so-called ˜black list’ one year after year they pay back loans.

Those who make out of court settlements after legal action has been initiated would also be removed from the list, but after a longer period.

The bureau is planning more measures to relax its procedures.

The CRIB was set up by Sri Lanka’s central bank following the collapse of a large number of finance companies in the nineteen eighties.

Authorities were due to introduce changes to the laws governing the unit thi