Credit Bureaus Act, 2015

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THE CREDIT BUREAUS ACT, 2015 
 
 
 
 
CONTENTS 
PART I  
PRELIMENARY 
SECTIONS: 
1. Short title, extent and commencement.  
2. Definitions. 
3. Application of other laws not barred. 
 
PART II 
ESTABLISHMENT OF THE CREDIT BUREAU AND ITS CAPITAL 
4. Licence. 
5. Eligibility for licensing.  
6. Paid up capital. 
7. Shareholding. 
8. Credit bureau in existence prior to the commencement of this Act.  
9. Power to suspend or cancel licence. 
 
PART III 
REQUIREMENT TO PROVIDE CREDIT INFORMATION 
10. Credit information furnishers to provide credit information. 
11. Membership of credit bureaus. 
PART IV 
AUDIT 
12. Accounts and balance sheet. 
13. Audit. 
 
 
 
Updated till 3.8.2022
 
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PART V 
POWERS OF THE STATE BANK OF PAKISTAN 
14. Powers of the State Bank of Pakistan to give directions. 
15. Power of the State Bank of Pakistan to call for information. 
16. Power of the State Bank of Pakistan to remove directors or other managerial persons from 
office. 
17. Powers of the State Bank of Pakistan to appoint auditors for special audit. 
 
PART VI 
FUNCTIONS OF A CREDIT BUREAU 
18. Functions which a credit bureau may transact. 
 
PART VII 
PROTECTION OF CONSUMER 
19. Permissible purposes and uses of credit information reports. 
20. Contents of credit information report . 
21. Prohibition of collection of credit information. 
22. Deletion of information from credit information report. 
23. Disclosure of source of credit information. 
24. Accuracy and security of credit information files and credit reports. 
25. False or misleading credit information. 
26. Unauthorized access to or disclosure of credit information. 
27. Obtaining access to credit information by false pretences. 
28. Obligations as to fidelity, confidentiality and secrecy. 
29. Exchange of credit information. 
30. Protection of action taken in good faith. 
31. Requirements on users. 
32. Legal recognition of electronic forms. 
 
PART VIII 
DISPUTE RESOLUTION 
33. Resolution of disputes. 
 
 
 
 
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PART IX 
OFFENCES, FINES AND PENALTIES 
34. Penalties. 
35. Adjudication of fine or penalty. 
36. Application of fines or penalties. 
37. Adjudication of punishment by imprisonment. 
38. Appeal. 
PART X 
APPEALS AND LEGAL PROCEEDINGS 
39. Complaint to State Bank of Pakistan. 
40. Appeal to High Court. 
PART XI 
GENERAL 
41. Removal of difficulties. 
42. Power of the Federal Government to make rules. 
43. Power to make regulations. 
SCHEDULE 
SUMMARY OF RIGHTS 
  
 
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THE CREDIT BUREAUS ACT, 2015 
ACT No. XI OF 2015 
[24th August, 2015] 
 
A Bill to provide for the incorporation and functioning of credit bureaus and to provide for 
matters connected therewith and incidental thereto 
 
WHEREAS it is expedient to provide for the incorporation and functioning of credit bureaus 
for collecting credit information relating to debtors of banks, financial institutions, non -banking 
financial institutions, non -financial companies and other lenders or authorities and maintain data of 
such information and also for the provision to disseminate such information, on request, for specified 
purposes with a view to facilitating efficient distribution of credit and for matters connected 
therewith and incidental thereto; 
 
It is hereby enacted as follows:― 
 
PART I  
 
PRELIMINARY 
 
1. Short title, extent and commencement. ―(1) This Act may be called the Credit Bureaus 
Act, 2015. 
 
(2) It extends to the whole of Pakistan. 
 
(3) It shall come into force at once on such dates as the Federal Government may, by 
notification in the official Gazette appoint. 
 
2. Definitions.―(1) In this  Act, unless there is anything repugnant in the subject or 
context,― 
 
(a) “adverse action ” means any action which causes a denial, rejection, 
cancellation of or reduction in or otherwise any unfavourable result in any 
transaction involving credit, finance, trade, commerce or employment with 
respect to a debtor; 
 
(b)  “banking” means the accepting, for the purposes of lending or investment, of 
deposit of money from the public, repayable on demand or otherwise, and 
withdrawable by cheque, draft, order or otherwise; 
 
(c) “banking company” means any company which transacts business of banking 
in Pakistan; 
 
(d) “banking policy” means any policy formulated by the State Bank of Pakistan 
in the interest of banking or in the interest of monetary stability or sound 
economic growth, having due regard to the interest of t he depositors, the 
volume of deposits and other resources of the bank and the need for equitable 
allocation and the efficient use of these deposits and resources; 
 
(e) “companies Ordinance ” means the Companies Ordinance, 1984 (XLVII of 
1984); 
 
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(f)  “company” means a company incorporated under the Companies Ordinance; 
 
(g)  “court” means the court of sessions having territorial jurisdiction in the area 
where the cause of action arises or offences committed under this Act; 
 
(h) “credit bureau ” means a public limited company established under the 
Companies Ordinance which has been granted a licence by the State Bank of 
Pakistan in accordance with this Act; 
 
(i) “credit information” means any information with respect to a debtor relating 
to― 
 
(i) the amounts, nature of loans or advances, finance and other credit 
facilities granted by a credit institution and repayment thereof by the 
debtor and the nature of security taken by a credit institution for credit 
facilities granted; 
 
(ii) the guarantee or any other non-fund based facility furnished by a credit 
institution for the benefit thereof; 
 
(iii) the amounts and nature of commercial transactions, facilities and 
services entered into or availed of credit from non -financial companies 
and bodies an d other lenders and authorities including but not limited 
to retailers, insurance companies, utility providers and landlords as 
notified by the Federal Government; 
 
(iv)  any and all factors included in the financial history bearing on the 
credit worthiness, credit standing and credit capacity thereof; 
 
(v)  any other related public record and information as prescribed by rules; 
or 
 
(vi)  personal information as prescribed by rules; 
 
(J)  “credit information furnisher” means any credit institution, person or entity 
which provides credit information to a credit bureau including non -financial 
companies and bodies and other lenders and authorities; 
 
(k)  “credit information report” means any written or electronic communication 
issued by a c redit bureau containing credit information relating to any debtor 
for the purposes of this Act; 
 
(l) “credit institution” includes ― 
 
(i) a banking company; 
 
(ii) microfinance banks; 
 
(iii) a financial institution, which means 
 
 
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(a)  any company, whether incorporated within or outside Pakistan, 
which transacts business of banking or any associated or 
ancillary business in Pakistan through its branches within or 
outside Pakistan and includes a government savings bank but 
excludes the State Bank of Pakistan; 
 
(b)  a modaraba, leasing company, investment bank, financing 
company, unit trust or mutual fund of any kind and credit or 
investment institution, corporation or company; and 
 
(c)  any company authorized by law to carry on any similar 
business; 
 
(iv)  non-banking financial company; and 
 
(v)  any company, corporation or institution or class of companies or 
institutions as  the Federal Government may from time to time, by 
notification in the official Gazette, specify for the purpose; 
 
(m) “credit scoring” means a system whereby points are awarded to debtors 
enabling users to asses the credit worthiness and capacity of debtors to repay 
loans and advances and to discharge any and all other obligations with regard 
to credit facility availed of or to be availed of by the debtors; 
 
(n) “debtor” means a person to whom finance as defined in the Financial 
Institutions (Recovery of Finances) Ordinance, 2001(XLVI of 2001) has been 
provided, including those who have been credit recip ients and who are 
potential recipients of credit as notified by the Federal Government; 
 
(o) “default” includes omission or failure to perform a legal or contractual 
obligation involving credit; 
 
(p) “licence” means the licence issued by the State Bank of Pakistan to a public 
limited company for the purpose of functioning as, and carrying out the 
business of, a credit bureau in accordance with the provisions of this Act; 
 
(q) “person” means an individual, association or body of individuals, company, 
firm, authority, institution or any other entity; 
 
(r) “prescribed” means prescribed by rules or regulations made under this Act; 
 
(s) “regulations” means regulations made under this Act; 
 
(t) “rules” means rules made under this Act; 
 
(u) “Schedule” means a Schedule to this Act; and 
 
(v) “user” means any person or body which obtains a credit information report 
from a credit bureau under this Act. 
 
 
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(2) The words and expressions used and not defined in this Act shall have the meanings as 
assigned to them in the Companies Ordinance, 1984 (XLVII of 1984), State Bank of Pakistan Act, 
1956 (XXXIII of 1956) and Banking Companies Ordinance, 1962 (LVII of 1962). 
 
3. Application of other laws not bar red. ―The provisions of this Act shall be in addition 
to, and not, save as herein after expressly provided, in derogation of, the Companies Ordinance, 1984 
(XLVII of 1984), the Banking Companies Ordinance, 1962 (LVII of 1962) or any other law for the 
time being in force. 
 
PART II 
ESTABLISHMENT OF THE CREDIT BUREAU AND ITS CAPITAL 
4. Licence.―Notwithstanding anything contained in any other law for the time being in force 
and save as hereinafter provided, no person shall commence or carry on business of or function as a 
credit bureau without obtaining a licence from the State Bank of Pakistan in the manner prescribed 
by regulations. 
 
5. Eligibility for licensing. ―( 1) A person proposin g to commence business  as a credit 
bureau shall be eligible for licence under this Act subject to the following conditions or 
requirements, namely: ― 
 
(a) such person is incorporated as a public limited company under the Companies 
Ordinance; 
 
(b) none of t he promoters, sponsors, directors, officers or employees of such 
company being an individual, sponsor, director, chief executive or major 
shareholder in any company,― 
 
(i) has been associated with any illegal banking business; 
 
(ii)  has overdue loan against any credit institutions that has not been 
settled within last six months; 
 
(iii)  has been convicted of any offence involving fraud, breach of trust or 
moral turpitude; 
 
(iv) has defaulted on payment of taxes and liabilities towards other 
government agencies; and 
 
(v) has either been adjudicated as insolvent or has defaulted in payment of 
debt or has compounded with his creditors; 
 
(c) the promoters of such company are persons of means and have special 
knowledge of matters which the company may have  to deal with as a credit 
bureau and are not involved in the capacity of a director or shareholder with 
any company, business or activity which is likely to be in conflict with the 
business of the credit bureau; and 
 
(d)  none of the directors of such comp any shall hold such office with any other 
company, business or activity which is likely to be in conflict with the 
business of the credit bureau. 
 
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Explanation―A company, business or activity shall be deemed to be in conflict with the 
business of the credit bureau, if it directly or indirectly competes with the business of credit 
information bureaus including but not limited to another credit bureau and financial institution. 
 
(2) Without prejudice to the conditions specified in sub -section (1), the State Bank of 
Pakistan may impose such additional conditions as it may deem necessary on any company at the 
time of granting the licence or generally by regulations. 
 
(3) The State Bank of Pakistan may refuse to grant licence, provided that― 
 
(a) any of the conditions imposed under this section is not fulfilled; or 
 
(b)  the application for a licence has been made subsequent to the issuance of a 
notification regarding suspension of issuance of licences generally: 
 
Provided that grant of licence shall not be refused without giving an opportunity of being 
heard. 
 
6. Paid up capital.―The minimum paid up capital of a credit bureau shall be a minimum of 
PKR 250,000,000 or as may be prescribed by the State Bank of Pakistan from time to time but not 
less than 250,000,000/- should be fully subscribed and deposited as paid up capital of the company. 
 
7. Shareholding.―(1) No person shall acquire more than ten percent shares of a credit 
bureau either directly or indirectly, except with prior written approval of the State Bank of Pakistan. 
 
(2) Anyone who knowingly contravenes the provisions of sub -section(1) shall be punishable 
with a fine not exceeding one million rupees. 
 
8. Credit bureau in existence prior to the commencement of this Act. ―(1) Every person 
conducting the business of a credit bureau on commencement of this Act, other than the credit 
information bureau of the State Bank of Pakistan, shall before the expiry of the twelve months from 
such commencement, apply in writing to the State Bank of Pakis tan for obtaining a licence to 
continue to carry on business of a credit bureau. 
 
(2) In the event that the application for the grant of licence made by a person conducting 
business of a credit bureau on commencement of this Act is refused by the State Ban k of Pakistan, 
such person shall cease operations as a credit bureau within such period as specified in the decision. 
The credit information collected, collated, stored and maintained by such person may not be sold to 
any entity other than a credit bureau and if the same is not sold to a credit bureau, for whatever 
reason, it shall be surrendered to the State Bank of Pakistan. 
 
9. Power to suspend or cancel licence.―The State Bank of Pakistan may suspend or cancel 
a licence, if a credit bureau― 
 
(a) ceases to carry on business of a credit bureau in Pakistan; 
 
(b) fails to comply with or contravenes any provision of this Act or any conditions 
subject to which the licence was granted to it or any other law for the time 
being in force or fails to comply with or contravenes any rules or regulations, 
directions, guidelines or instructions issued under this Act: 
 
Provided that no licence shall be suspended or cancelled without affording an opportunity to 
be heard. 
 
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PART III 
 
REQUIREMENT TO PROVIDE CREDIT INFORMATION 
 
10. Credit information furnishers to provide credit information.―Notwithstanding 
anything contrary to any other law for the time being in force or in any agreement entered into 
between a credit information furnisher and its debtor, credit information furnishers shall provide 
credit information to credit bureaus, provided that such credit information furnisher is a member of 
the credit bureau, to which credit information is being provided. 
 
11. Membership of credit bureaus.―(1) Every credit institution shall become a member of 
at least one credit bureau within a period as may be prescribed by regulations. The membership of 
other credit information furnisher, other than credit institution, to become a member of credit 
bureaus shall be notified by the Federal Government accordingly. 
 
(2) All credit information furnishers upon membership of a credit bureau shall furnish credit 
information in accordance with the requirements and specifications. 
 
(3) In case of termination of membership, the credit institution shall obtain membership of 
any other credit bureau either before termination or simultaneously to comply with sub-section (1). 
 
(4) In case of failure to comply with quality standards and procedural requirements specified 
by credit bureaus, the membership of credit information furnisher either by the credit bureau on its 
own motion or at the direction of the State Bank of Pakistan may be suspended or cancelled, 
provided that an opportunity to show cause for the proposed action is given. 
 
(5) Where a credit institution 
 
(a) abstains from becoming a member of at least one credit bureau; or 
 
(b) at any time is not a member of any credit bureau― 
 
such credit institution shall be liable to a fine not exceeding one million rupees and, where the 
contravention is a continuing one, with a further fine which may extend to fifty thousand rupees for 
every day during which the violation continues, provided that no penalty may be imposed by the 
State Bank of Pakistan without affording such credit institution an opportunity to show cause against 
the proposed imposition of penalty. 
 
PART IV 
AUDIT 
12. Accounts and balance sheet .―Every credit bureau shall on expiration of each calendar 
year prepare a balance sheet and profit and loss account in respect of all business transacted in that 
year by it. 
 
13. Audit.―(1) The accounts of credit bureaus shall be audited by auditors who are chartered 
accountants within the meaning of Chartered Accountants Ordinance, 1961 (X of 1961) and are on 
the panel of auditors maintained by the State Bank of Pakistan for the purposes  of audit of banking 
companies. 
 
 
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(2) Credit bureaus shall submit duly audited accounts to the State Bank of Pakistan within a 
period not exceeding three months of the date of closing of each calendar year. 
 
 
PART V 
POWERS OF THE STATE BANK OF PAKISTAN 
14. Powers of the State Bank of Pakistan to give directions.―(1) Where the State Bank of 
Pakistan is satisfied that it is necessary and expedient so to do― 
 
(a) in the public interest; or 
 
(b) in the interest of banking policy; or 
 
(c) in the interest of the credit system, credit bureaus, credit inf ormation 
furnishers, users and debtors in general or to prevent the affairs of a credit 
bureau being conducted in a manner detrimental or prejudicial to the interests 
thereof; or 
 
(d) to secure the proper management of credit bureaus generally, ― 
 
it may f ormulate the policies, issue regulations, directions or guidelines to 
credit bureaus generally or to a credit bureau in particular, from time to time, 
as it deems fit and the credit bureau or all the credit bureaus, as the case may 
be, shall be bound to comply with such policy, directions and guidelines. 
 
(2) The State Bank of Pakistan may, on representation made to it or on its own motion, 
modify or cancel any regulations, guidelines or direction issued under sub -section (1) and in so 
modifying or canceling any direction may impose such conditions as it deems fit, subject to which 
the modification or cancellation shall have effect. 
 
15. Power of the State Bank of Pakistan to call for information .―(1) The  State  Bank  of 
Pakistan shall have the power and authority to call for any information from a credit bureau 
regarding its business and affairs and to appoint inspecting officers to inspect its books, data, 
accounts, record and other documents. 
 
(2) It shall be duty of every director, officer or employee of credit bureaus to produce all such 
books, data, accounts, record and other documents in his custody or power to an inspecting officer 
appointed under sub-section (1) and furnish to such inspecting officer any statement and information 
relating to the affairs of the credit bureau. 
 
(3) An inspecting officer appointed under sub -section (1) may examine on oath any director, 
officer or employee of a credit bureau in relation to its business and may administer an oath 
accordingly. 
 
1[* * * * * * *] 
 
 
 
 
1 omitted by Act XXXIV of 2016, s.2. 
 
 
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16. Power of the State Bank of Pakistan to remove directors or other managerial 
persons from office.―(1) Where the State Bank of Pakistan is satisfied that any chairman, director, 
chief executive or any officer, by whatever name called, of a credit bureau, has been, or is likely to 
be, in breach of the provisions of this Act or rules or regulations made thereunder or any policy, 
directions or guidelines issued thereunder, it may, for reasons to be recorde d in writing, remove from 
office, with effect from such date as may be specified in the order, or may hold the same liable to a 
fine not exceeding five million rupees: 
 
Provided that no order under this sub-section shall be made unless concerned person has been 
given a reasonable opportunity of being heard against the proposed action and that concerned person 
has failed to provide an explanation to the satisfaction of the State Bank of Pakistan within the time 
frame specified. In the  event of issuance of an  order of removal, the chairman, director, chief  
executive and officer so removed shall vacate their office on the date specified in the order and the 
vacancy so created shall be filled in accordance with the Companies Ordinance. 
 
(2) Where the State Bank of Pakistan is satisfied that the board of directors of any credit 
bureau is, or is likely to be, detrimental to the interest of such credit bureau, its shareholders or the 
public interest or the interest of the credit information system in general or for securing proper 
management of such credit bureau, it is necessary so to do, it may for reasons to be recorded in 
writing, supersede the board of directors of the credit bureau for such period as may be specified in 
the order or extended subsequently, however, the total period shall not exceed twelve months: 
 
Provided that no order under this sub -section shall be made unless the concerned credit 
bureau has been given a reasonable opportunity of being heard against the proposed supersession and 
that bureau has not provided an explanation to the satisfaction of the State Bank of Pakistan within 
the time frame specified. In the event of the issuance of an order of supersession under this sub -
section, the board of directors, including the chairman, chief executive and directors, by whatever 
name called, shall vacate their offices on the date specified in the order. 
 
(3) Upon making of an order of supersession under sub-section (2), ― 
 
(a) the State Bank of Pakistan may appoint an administrator and shall issue such 
directions to the appointed administrator as it deems fit and appropriate and 
the administrator shall be bound to follow the issued directions; and 
 
 (b) all powers, functions and duties, which may under the provisions of the 
Companies Ordinance or this Act or any other law for the time being in force 
or by resolution passed in a general meeting  of such credit bureau, be 
exercised or discharged by or on behalf of the board of directors of such credit 
bureau until the reconstitution of the b oard of directors under sub-section (5) 
shall be exercised and discharged by the administrator appointed by the    
State Bank of Pakistan. 
 
(4) The salary payable to the administrator and any staff assisting the administrator shall be 
fixed by the State Bank of Pakistan and shall be borne by the credit bureau. 
 
(5) On or before the expiration of two months prior to the expiry of the period of supersession 
specified in the order of the State Bank of Pakistan issued under sub -section (3), the administ rator 
shall call a general meeting of the credit bureau to elect new directors and to reconstitute its board of 
directors. 
 
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(6) No person removed from his office under the order of the State Bank of Pakistan shall be 
entitled to any claim or compensation. 
 
17. Powers of the State Bank of Pakistan to appoint auditors for special audit. ―(1) 
Where the State Bank of Pakistan is satisfied that it is necessary and expedient to do so in the public 
interest or in the interest of the credit system, credit bureaus, cr edit information furnishers, users or 
the debtors, it may, at any time, direct by written notice that a special audit of a credit bureau shall be 
conducted and the State Bank of Pakistan may by such notice or by a separate notice appoint auditors 
to conduct such special audit of―  
 
(a) the accounts of the credit bureau in relation to any transaction or class of 
transactions or for such period or periods as may be mentioned in the notice; 
and 
 
(b) where the credit bureau has not complied with the requirements for audit 
under sub-section (3) of section 24 or where the State Bank of Pakistan deems 
that such an audit is required, it may appoint the auditors who shall comply 
with such notice and directicns of the State Bank of Pakistan and submit a 
report of such audit to the State Bank of Pakistan. 
 
(2) The State Bank of Pakistan may issue directions in particular or in general with respect to 
the audit of credit bureaus conducted in accordance with this Act and submission of reports thereof 
 
(3) The remuneration of the auditors appointed under sub -section (1) shall be fixed by the 
State Bank of Pakistan with due consideration to the nature and volume of work involved in the audit 
and the expenses of, or incidental to, the audit shall be borne by the  credit bureau with respect to 
which the audit is conducted. 
 
 
PART VI 
FUNCTIONS OF A CREDIT BUREAU 
18. Functions which a credit bureau may transact .―(1) A credit bureau, in accordance 
with the provisions of this Act and rules made thereunder, may― 
 
(a) collect, process, collate, store and maintain credit information relating to 
debtors; 
 
(b) provide credit information reports to users and other credit bureaus; 
 
(c) undertake credit scoring and to sell such credit scoring to users; 
 
(d) consolidate and ut ilize credit information for purposes of supplying statistics, 
analysis and conducting research, provided that the identity of the concerned 
debtor or the credit information furnisher is not disclosed in any manner; 
 
(e) undertake any other form of business which may be prescribed by regulations. 
 
(2) No credit bureau shall engage in any form of business other than those provided under 
sub­ section (1). 
 
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PART VII 
PROTECTION OF CONSUMER 
19. Permissible purposes and uses of credit information reports .―(1) A credit  bureau  
may furnish credit information collected, processed, collated, stored and maintained, in accordance 
with the provisions of this Act and rules made thereunder in the form of a credit information report, 
under the  following  circumstances,  namely:― 
 
(a) on written or electronically received request of a credit institution; 
 
(b) on written or electronic request or instructions of the debtor, to whom it 
relates, received from such debtor or through a duly constituted attorney 
thereof; 
 
(c) on written or electronically received request from Securities and Exchange 
Commission of Pakistan to assist them in discharging their regulatory 
obligations; 
 
(d) in Compliance with an order of a competent court having jurisdiction to issue 
such order; and 
 
(e) for any other purpose, which may be prescribed by regulations. 
 
(2) A credit bureau may not furnish a credit information report provided reasonable grounds 
are available to believe that the same will not be used for purposes specified under sub-section (1). 
 
(3) No credit bureau shall maintain its data base at a place outside Pakistan without prior 
permission in writing of the State Bank of Pakistan. 
 
(4) In the event of winding up, dissolution, liquidation or bankruptcy of a credit bureau or in 
case of termination of licence, such credit bureau shall immediately cease all such functions and 
operations. The credit information collected, collated, processed,  stored and  maintained by such  
credit bureau may be sold to any other credit bureau or the same shall be surrendered to the State 
Bank of Pakistan. 
 
20. Contents of credit information report .―(1) A credit information report issued by a 
credit bureau in accordance with the provisions of this Act shall only contain credit information as 
prescribed and shall not contain any information or data relating to a debtor that is not relevant for 
the purposes of evaluating or assessing the credit worthiness of such debtor. 
 
(2) Personal information contained in a credit information report relating to an individual 
debtor shall be limited to such items as may be prescribed by regulations. 
 
21. Prohibition of collection of credit information .―No credit bureau shall co llect credit 
information which― 
 
(a) violates any law for the time being in force; or 
 
(b) intrudes upon, to an unreasonable extent, personal affairs of the individual 
concerned. 
 
 
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22. Deletion of information from credit information report .―No credit bureau shall 
include information of default or overdue with respect to any obligation involving credit, where the 
date on which the default or overdue has been settled antedates the credit information report by the 
number of years as may be prescribed by rules. 
 
23. Disclosure of source of credit information .―(1) Every credit bureau, upon request and 
payment of fee prescribed by regulations shall disclose to a debtor, clearly and accurately, the source 
of credit information contained in the credit information report of such debtor. 
 
(2) A credit bureau shall provide to a debtor, a copy of the summary of rights alongwith the 
report requested under sub-section (1) as set out in the Schedule. 
 
24. Accuracy and security of credit information files and credit reports. ― (1) A credit 
bureau  shall― 
 
(a) take reasonable steps to ensure that the credit information stored, maintained 
and disseminated is accurate, up -to-date, complete and not misleading and for 
this purpose may make therein appropriate corrections, deletions and additions 
regularly during the course of business; and 
 
(b) ensure that the credit information maintained by it is protected by such 
security safeguards as are reasonable in the circumstances against loss, 
unauthorized access, use, modification or disclosure  thereof― 
 
(2) The credit bureau shall follow the standards with respect to systems and procedures, 
including any information systems employed by the credit bureau to ensure credit information 
accuracy and security as may be prescribed by regulations. 
 
(3) Every credit bureau shall arrange to have such systems and procedures independently 
audited every year to ensure adherence to standards prescribed under sub-section (2). 
 
25. False or misleading credit information.―(1) A credit  bureau  or   a  credit  information 
furnisher shall not knowingly disseminate credit information that contains false or misleading 
information. 
 
(2) A credit bureau or credit institution which contravenes sub-section (1) shall be punishable 
with a fine not exceeding five million rupees. 
 
26. Unauthorized access to or disclosu re of credit information .―(1) No one  shall obtain 
access to, or distribute or disclose, credit information in the possession or control of a credit bureau 
or a credit informati on furnisher or a user unless such access or distribution or disclosure is 
authorized by this Act or any other law for the time being in force. 
 
(2) Any credit bureau which contravenes the provisions of this section shall be guilty of an 
offence punishable with a fine not exceeding five million rupees or by imprisonment not exceeding 
three months or with both: 
 
Provided that the punishment of imprisonment shall be awarded to the director, officer, 
employee, agent or representative, etc., of the credit bureau who is convicted of such contravention. 
 
 
 
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27. Obtaining access to credit information by false pretences.―No one shall obtain access  
to credit information in the possession or control of a credit bureau or a credit information furnisher 
or a user under or by false pretences and anyone who violates the provisions of this section shall be 
liable to be punished with a fine, not exceeding one million rupees or by imprisonment not exceeding 
three months or with both. 
 
28. Obligations as to fidelity, confidentiality and secrecy .―(1) Every credit bureau, credit 
information provider, present or past employee of a credit bureau or credit inform ation provider, or 
other person by reason of his capacity or office to have by any means access to credit information, 
shall regard as secret and confidential all documents or information disclosed to it in connection with 
the performance of any duty or function under this Act. 
 
(2) Every chairman, director, member of the board of directors, auditor, adviser, officer or 
other employee of a credit bureau shall, before entering upon his duties, make a declaration of 
fidelity and secrecy in the form as may be prescribed. 
 
(3) A disclosure made in any of the following circumstances shall not be deemed inconsistent 
with any duty imposed by this section being a disclosure. 
 
(a) permitted by the provisions of this Act; 
 
(b) on the instruction of the consumer to whom the information related; 
 
(c) to the consumer to whom the information relates; and 
 
(d) as directed by an order of the court. 
 
29. Exchange of credit information .―Notwithstanding anything contained in this Act , 
credit bureaus in Pakistan m ay exchange credit information on  confidential basis amongst 
themselves, or with other companies as may be approved by the State Bank of Pakistan for the 
purpose of exchange of credit information. 
 
30. Protection of action taken in good faith .―No suit or other legal proceedings, 
prosecution, claims, actions or demands shall lie against the Federal Government, State Bank of 
Pakistan, a credit bureau and credit information furnisher or against their directors, officers, 
employees, agents or representatives o r any other person authorized by the same to discharge any 
functions under this Act, for any loss or damage caused or that is likely to be caused by anything 
which is in good faith done or intended to be done, in pursuance of this Act or the rules and 
regulations made thereunder or any other law or provision having the force of law. 
 
31. Requirements on users.―In the event that any user takes an adverse action with respect 
to a debtor that is based in whole or in part on any information contained in a credi t information 
report relating to such debtor, such user shall provide to such debtor a copy of the credit information 
report relied upon, the name, address and telephone number of the credit bureau, which issued the 
credit information report in question, a  copy of the summary of rights set out in the Schedule and a 
statement that the credit bureau did not make the decision to take the adverse action. 
 
32. Legal recognition of electronic forms.―Any document, record, information, 
communication, transaction, publication or notice, made under or for the purposes  of this Act,  
whether required or otherwise, shall be deemed valid if made in electronic form.  
 
 
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PART VIII 
DISPUTE RESOLUTION 
33. Resolution of disputes.―(1) In the event that the accuracy, completeness or correctness 
of a credit information report or any part thereof is disputed by the concerned debtor, such debtor 
may notify in writing to the concerned credit bureau of the alleged error, such credit bureau shall 
resolve or take up the dispute with the credit information furnisher: 
 
Provided that the rights specified in the Schedule shall also apply to this section. 
 
(2) The credit information reports shall clearly identify the disputed credit information, if 
any. 
 
PART IX 
OFFENCES, FINES AND PENALTIES 
34. Penalties.―Any person who contravenes or defaults in complying with any provision or 
requirement of this Act or of any rules or regulations made thereunder or obstructs lawful exercise of 
any power conferred by or under this Act, shall, if no specific provision is made under this Act, the 
rules and regulations made thereunder for punishment of such contravention, default or obstruction, 
in addition to any other liability as provided for herein, be punishable with fine which ma y extend to 
five million rupees and where a contravention, default or obstruction is a continuing one, with a 
further fine which may extend to fifty thousand rupees for every day during which the contravention 
or default or obstruction continues. 
 
35. A djudication of fine or penalty .―Where only a fine is provided  for any offence, 
contravention or default in complying with any of the provisions or requirements of this Act or of 
any rule or regulations made thereunder, it shall be adjudged by the State Bank o f Pakistan provided 
that the person concerned is afforded an opportunity of being heard. 
 
36. Application of fines or penalties .―(1) The Court imposing any fine or penalty under 
this Act may direct that the whole or any part thereof shall be applied in or towards― 
 
(a) payment of costs of the proceedings; or 
 
(b) for such purposes as may be directed by the Court. 
 
(2) Any amount recovered as fine or penalty, which is not applied as aforesaid, shall be 
credited to the Public Account of the Federal Government. 
 
37. Adjudication of punishment  by imprisonment.―(1) Where  imprisonment or 
imprisonment in addition to fine is provided for any contravention of, or default in complying with, 
any provisions of this Act and any rules or regulations made thereun der, it shall be adjudged by the 
Court. 
 
(2) The Court shall not take cognizance of any offence punishable under this Act except upon 
a complaint in writing made by an officer of the State Bank of Pakistan or by a person authorised 
by the Federal Government in this behalf. 
 
 
 
 
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38. Appeal.―Any person aggrieved by decision of the Court under this Part, may within 
thirty days of date of the decision, prefer an appeal to the High Court. 
 
PART X 
APPEALS AND LEGAL PROCEEDINGS 
39. Complaint to State Bank of Pakistan.―Any person aggrieved by any action or 
omission of a credit bureau, credit institution, debtor, user or any other person under this Act may 
make a complaint to the State Bank of Pakistan to resolve the dispute in such manner as it deems fit. 
 
40. Appeal to High Court. ―Any person aggrieved by decision, of the State Bank of 
Pakistan may, within thirty days of date of the decision, prefer an appeal to the High Court. 
 
PART XI  
GENERAL 
41. Removal of difficulties.―If any difficulty arises in giving effect to any of the provisions 
of this Act, the Federal Government may make such order as may appear to it to be necessary for the 
purpose of removing the difficulty: 
 
Provided that such power under this section shall not be exercisable after  two years of the 
commencement of this Act. 
 
42. Power of the Federal Government to make rules .―The Federal Government  may, 
after consultation with the State Bank of Pakistan and by notification in the official Gazette, make 
rules to provide for all matters for which provision is necessary or expedient for the purposes of 
giving effect to the provisions of this Act. 
 
43. Power to make regulations .―The State Bank of Pakistan may, by notification in the 
official Gazette, make regulations not inconsisten t with the rules to provide for all matters for which 
provision is necessary. 
 
SCHEDULE 
[see sections 23(2), 31 and 33] 
SUMMARY OF RIGHTS 
1. Limitation on credit information.―The scope of credit information that may be included 
in a credit information report by a credit bureau is limited by this Act. Personal information that may 
appear on a credit information report is also specific and limited under this Act and the rules and 
regulations made thereunder. Certain type of information may not  appear on your credit information 
report for longer than a specified period of time. 
 
2. Limitation on access to credit information reports .―Credit information reports may 
only be issued to specific persons under strictly defined circumstances and for specific purposes. 
Credit bureaus are liable to follow certain steps pertaining to the manner in which credit information 
reports are issued in order to ensure that the person to whom and the purposes for which credit 
information is being provided is authorized by and lies within the scope of this Act and the rules and 
regulations made thereunder. 
 
 
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3. Collection of credit information .―On most occasions when a credit bureau is seeking 
your credit information from you, credit bureaus are required to inform you that credit information is 
being collected; the purpose of such collection; intended recipients; name and address of the credit 
information that is collecting the information and the agency that will hold such information ; 
whether o r not the supply of the information is voluntary or mandatory and if mandatory, the 
particular law under which it is required; the consequences, if any, if all or any part of the requested 
information is not provided; the rights of access to and correction of credit information held and used 
by the credit bureau as provided herein. 
 
4. Disclosure of source of credit information .―Credit bureaus are required  to disclose the 
source of the credit information appearing on  your credit information report upon request and 
payment of fee by you. 
 
5. Right to credit information report. ―(1) You or your authorized attorney may obtain a 
copy of your credit information from a credit bureau. 
 
(2) Any user who takes an adverse action against you based in whole or in par t on any 
information contained in a credit information report is required to provide you a copy of the credit 
information report relied upon, the name, address and telephone number of the credit bureau, which 
issued the credit information report in questio n and a statement that the credit bureau did not make 
the decision to take the adverse action. 
 
(3) In the event that a correction is made to the credit information appearing on your credit 
information report in response to your notification of error, the concerned credit bureau must provide 
you with a copy free of cost of the updated credit information report. 
 
6. Right to dipute incorrect credit information.―(1) Credit bureaus must take  reasonable 
steps to ensure that the credit 1[information] they collect, collate, accept, store, maintain and 
disseminate is accurate, up-to-date, complete and not misleading in any manner and for this purpose 
may make therein corrections, deletions and additions regularly during the course of business. 
 
(2) In any event that the accuracy, completeness or correctness of a credit information report 
relating to you or any part thereof is disputed by you, you may notify the concerned credit bureau 
of the alleged error. The credit bureau must acknowledge receipt of such notification of  error and 
provide you with this summary of rights within the time period prescribed. 
 
(3) The credit bureau is required to re -investigate the disputed information, free -of-charge, 
within the period of time as pre scribed. Credit information reports issued while the investigation is 
pending shall clearly identify the disputed credit information and that the same is being investigated 
for accuracy and the concerned credit bureau shall also, as far as is reasonably pr acticable, inform 
those persons or entities who have received a credit information report containing the credit 
information allegedly inaccurate and under investigation. 
 
(4) If after re-investigation, any item contained in the credit information report is  found to be 
inaccurate or incomplete or otherwise incorrect, the credit bureau must immediately and without 
undue delay delete such item or modify such item, as appropriate, in the credit information report 
and must supply free of cost a copy of the updat ed credit information report to the concerned debtor. 
The credit bureau must also, if reasonably practicable, inform each person or entity to whom the 
credit information report containing inaccurate credit information is supplied, about the dispute and 
the result of investigation. 
 
1 Ins. by Act XXXIV of 2016, s. 3 
 
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(5) If after re -investigation, the credit bureau finds that the disputed items are accurate, 
complete and correct, you may file a brief written statement setting forth the nature of the dispute, 
which the credit bureau must include in the subsequent credit information reports concerning you or 
a clear and accurate summary of such statement unless there is reasonable ground to believe that 
such dispute is frivolous or irrelevant alongwith a stateme nt detailing the re -investigation report 
findings. 
 
7. Right to file complaint with the State Bank of Pakistan.  If you are aggrieved by any 
action or omission of a credit bureau, including the result of re -investigation conducted in response 
to your notifi cation of alleged error or by that of a credit institution, credit information furnisher or 
user under this Act or the rules and regulations made thereunder, you have the right to lodge a 
complaint with the State Bank of Pakistan. 
 
8. Contact details.—Credit bureau is required to insert address, phone and facsimile number, 
website and e-mail address, if available. 
 
 
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