Central Credit Register: Reporting of guarantees required from 1 February 2025

On 2 October 2024, the Central Bank of Ireland ("CBI") updated its Guidance on the Central Credit Register ("CCR") (version 2.6) to commence the reporting obligations in respect of guarantees under the Credit Reporting Act 2013 ("CRA"), from 1 February 2025.

This briefing provides a high-level overview of the obligations with regards to guarantors and guarantees under the CRA which are impacted.

Key impacts

In summary:

• Reporting of guarantees: Guarantees entered into on or after 1 February 2025 in respect of credit agreements entered into on or after 1 February 2025 will be reportable to the CCR. Note:

(i) Guarantees, including all sums guarantees, must only be reported for credit agreements that are in scope of the CRA.
(ii) A guarantee must only be reported to the CCR where the credit information provider ("CIP") holds a legally enforceable guarantee.

• Other obligations: CIPs will have other obligations, such as to:

(i) Take reasonable steps to verify the identity of the guarantor (this is already a requirement regarding borrowers).
(ii) Inform guarantors of their rights with an information statement (this is already a requirement regarding borrowers).

Type of data to be reported 

Guarantor subject data 

The CIP must report the same subject information for the guarantor as they would for a borrower or co-borrower. In the event that the individual or legal entity providing the guarantee is not an existing customer of that CIP, the CIP must create a unique customer number for them in order to report them to the CCR.

Guarantor contract data

A guarantee must be reported on the contract record under Security Type using Personal Guarantee, Limited Personal Guarantee, Corporate Guarantee, Limited Corporate Guarantee or Other Guarantee, depending on whether the guarantee is offered by a person or a legal entity and whether the guarantee is for the full amount of the debt or a portion of it. In exceptional circumstance, where a CIP is satisfied that none of these options are accurate Other Guarantee may be reported.

The CIP must submit a contract record for the loan in respect of each Credit Information Subject ("CIS") that is party to the credit agreement, including a guarantor.

Calling in guarantee / end of guarantee

In the event that the CIP calls in the guarantee, the CIP must report this event under the Credit Status data field. Otherwise, there is no performance information specific to the guarantor, reportable to the CCR, e.g. if a CIP issues legal proceedings against a guarantor, or if a guarantee is restructured.

When the guarantee ends, the CIP stops reporting the contract in respect of the guarantor. The CCR Guidance provides for reporting scenarios in cases of multiple guarantors and limited guarantees.

Notices 

Guarantors must be made aware of their rights and duties under the CRA – there is no prescribed form for this, and it can be in guarantee documentation or a separate mailshot.

Credit Checks

Duty to conduct credit check re credit applicant

Under the CRA the CIP has a duty to access the CCR and perform a credit check for any relevant credit application (i.e. an application for credit to a CIP for €2,000 or more). 

Power (not duty) to conduct check re guarantor 

By contrast, CIPs have the power, but not a duty, to access information held on the CCR which relates to a person who is proposing to give a guarantee or indemnity in connection with a credit application made to the CIP. 

A CIP also has the power, but not a duty, to access guarantor records on the CCR in respect of credit agreements where the CIS makes a request to change the nature or term of a guarantee or where there is a failure to adhere to a guarantee.

Content of credit report and records

Credit reports will now contain full information on any loans in a borrower's own name and limited information for any loans guaranteed by that borrower. The credit report will show whether the person is a borrower, co-borrower or a guarantor for each in-scope loan.  Information obtained by the CIP as a result of the enquiry can only be used for certain prescribed purposes, as set out in Section 16 of the CRA.

A CIP must retain evidence of each enquiry, whether in accordance with a duty or in exercising a power, on the CCR for a period of 5 years.