Ongoing Credit Checks and Requirements
If a financial institution (FI) receives information that casts doubt a borrower's creditworthiness, they must conduct a check on the borrower's income and credit-related information.
If Doubts on a Borrower's Creditworthiness Are Raised
An FI is required to conduct a fresh income and credit bureau check upon receiving information from any person that casts doubt on a borrower's creditworthiness.
For example, an alert could be raised by a family member or credit counsellor of a borrower in debt distress.
For follow-up, the FI may request the informant to identify themselves and to provide sufficient information to identify the borrower (e.g. NRIC number). If requested by the informant, the FI will keep the informant’s identity confidential.
Note: MAS does not require the FI to immediately suspend the borrower's credit. As some complaints could be malicious or unfounded, it would be more appropriate to allow the FI to make an updated assessment and take the appropriate measures.
If Creditworthiness has Fallen
If the borrower no longer qualifies for their current credit limit, either because of decreased income or increased debt, the FI must: