Central Bank of Ireland / Central Credit Register updates: guarantees reportable from February 2025

From the 1 February 2025, guarantees are now reportable to the Central Credit Register.

Guarantees entered into on or after the 1 February 2025 in respect of in-scope credit agreements entered into on or after the 1 February 2025 must now be reported to the Central Credit Register (CCR). For the purposes of this guidance, the meaning of "in-scope" refers to the provision of a guarantee in respect of credit exceeding €500.

Reporting obligations

This new reporting obligation imposes additional responsibilities on lenders known as Credit Information Providers (CIPs) under the Credit Reporting Act 2013 (the 2013 Act). CIPs must update the CCR with personal and credit information of Credit Information Subjects (CIS) for both credit applications and credit agreements to include data on the provision of a guarantee by the guarantor. Under the 2013 Act, a CIS can be an individual, including sole traders and legal entities that are:

• applying for credit

• entering into a credit agreement

• providing a guarantee in relation to a credit agreement or credit application

This information will be held on the CCR and may be used by lenders when making decisions on credit applications and credit agreements.

The Central Bank of Ireland's (CBI) guidance provides that reporting requirements will apply to both all sums due guarantees and limited guarantee's.

In order to link the guarantor with the guarantee on the Central Credit Register, a customer identifier number (CIS) is required along with the role of the CIS, in this instance as guarantor in respect of the credit agreement. If the guarantor is not an existing customer of the CIP then the CIP must create a unique customer number to enable them to update the CCR.

Data requirements

To update the CCR the following data will be required from the guarantor:

1. Guarantor subject data for legal entities: data that identifies the guarantor, including their entity legal name, entity form, entity registered address, entity telephone number and company registration number and tax number

2. Guarantor subject data for individuals: name, address, date of birth, telephone number and PPSN, and for sole traders, entity trading name, entity form, entity registered address and tax numbers

3. Guarantee security / contract data: the type of guarantee being provided, as selected from CBI descriptions listed below

CBI guarantee categories

The CIP must select one of the following descriptions when reporting an in-scope guarantee:

1. Personal Guarantee

2. Limited Guarantee

3. Limited Personal Guarantee

4. Corporate Guarantee

5. Limited Corporate Guarantee

6. Other Guarantee

If the guarantee is for the entire amount of the debt owed, or is for an unlimited amount, the Credit Information Providers must select either Personal Guarantee if provided by an individual or Corporate Guarantee if given by a corporate entity. This selection is also applicable if the guarantee is given for a specific amount of time.

If the guarantee is given to cover part of a debt the CIP should select Limited Personal Guarantee if provided by an individual, or a Limited Corporate Guarantee if provided by a corporate entity. Alternatively, the CIP can select Other Guarantee if the particular guarantee does not fall within the descriptions provided (i) to (v). There is also no limit with respect to the number of guarantees that can be reported in connection with one credit agreement.

Optional reporting obligations / enforcements

It is noteworthy that there are no requirement to report on the issuance of legal proceedings by a CIP on foot of a guarantee or on the restructuring of a guarantee.

Enquiries CIPs can make

They can make the following enquires:

• A new application enquiry: when a CIS makes a credit application with a CIP or when a CIS offers to provide a guarantee in respect of a credit application

• A monitoring enquiry: when a CIS seeks to restructure their credit agreement or misses a scheduled payment or exceeds the limit on their credit agreement

Accurate reporting

In addition to reporting, CIPs must take all reasonable steps to ensure the accuracy and completeness of all personal information submitted to the CCR, as required under the 2013 Act. The CIP meets this requirement by verifying the identity of credit information subjects.

Accessing CCR information on guarantors

Although the CCR provides CIPs with a reliable and secure source of credit information, the CIP is not obliged to search the Central Credit Register in relation to a proposed guarantor whether that be an individual or corporate guarantor offering to provide an in-scope guarantee. This approach also extends to guarantors that breach their obligations under the guarantee or propose to change the nature or term of the guarantee.

Failure to comply with the reporting requirements

The Credit Reporting Act 2013 provides the Central Bank with enforcement powers which it may exercise if it considers that a CIP has failed or is failing to comply with any obligation imposed by the 2013 Act. The 2013 Act also enables the Central Bank of Ireland to avail of its existing enforcement powers in respect of regulated financial service providers.

How Ogier can help

To understand how these new reporting requirements may impact your lending activities and how Ogier can assist, please contact our Irish Banking and Finance team.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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