What the Law Expects from Credit Providers and Credit Bureaus

Tsaone Kabomo

In our previous article, we explored how the Credit Information Act, 2021, is laying the groundwork for a more transparent and inclusive credit system in Botswana. In this next instalment, we turn our focus to what the law expects from credit providers and credit bureaus.

The Act does more than outline consumer rights, it places clear responsibilities on the institutions that handle credit data. Both credit providers (like banks, microlenders, and retailers) and credit bureaus play critical roles in ensuring Botswana’s credit system is accurate, secure, and fair.

Credit providers are required by law to submit complete, up-to-date, and accurate credit information to licensed credit bureaus. This includes data on loan applications, credit terms, payment history, defaults, and settlements. Importantly, they must notify consumers that their data will be shared with a credit bureau and explain the purpose of that sharing. Credit bureaus, in turn, must manage that information responsibly. The Act mandates high standards for data security, accuracy, and fairness. Bureaus must have robust systems in place to protect consumer data, process corrections quickly, and ensure that only authorised parties access credit reports. They are also required to give consumers access to their credit reports and provide clear procedures for disputing errors.

What the Law Expects from Credit Bureaus

Licensed credit bureaus are authorized by the Bank of Botswana to collect, compile, and share consumer credit information. Their legal duties include:

• Data Accuracy: Credit bureaus must ensure that the information is accurate, complete, relevant, and up to date through verification with data providers.
• If there is a dispute the accuracy of any item on a credit report, the law requires the credit bureau to investigate the matter.  The investigation must be finalized within 20 business days. If, for any reason, the process isn’t completed within that period, the bureau is obligated to temporarily remove or flag the disputed data while continuing the review.

• Security: They must have proper technical and organizational safeguards to protect consumer data from unauthorized access, loss, or misuse.
• Consumer Rights: They are obligated to give consumers access to their credit reports, investigate disputes, and amend incorrect or outdated data.
• Retention: Consumer data must be retained for up to 20 years from the final repayment, write-off, or bankruptcy discharge.
• Disclosure: Bureaus can only disclose information under specific conditions such as consent from the consumer, legal obligations, or to safeguard credit markets.
• Compliance: Credit bureaus are subject to routine inspections and must comply with licensing conditions and Bank of Botswana directives.

What the Law Expects from Data Providers

Data providers include banks, microlenders, utilities, retailers, and anyone who supplies goods or services on credit. Their key obligations are:

• Mandatory Submission: They must submit both positive (on-time payments) and adverse (defaults, late payments) information to licensed credit bureaus.
• Notification: Before submitting adverse information, they must notify the customer in writing, or this must be included in their customer agreement
• Data Quality: They must ensure the information is accurate, secure, and submitted in a timely manner. Any errors must be corrected within 14 days.

The Credit Information Act fosters a responsible credit culture by placing clear duties on both credit bureaus and credit providers.  This legal framework ensures that all players in the credit ecosystem are held accountable and that compliance is not optional but a legal obligation. Together, these obligations are shaping a fairer, safer, and more accountable credit market in Botswana; making access to credit easier for both individuals and businesses. In the long run, this can significantly reduce household over-indebtedness across the country.

Be sure sure to revisit and read our next and final part of the series, where we will take a closer look at what the Credit Information Act says about consumer rights