Banks in Fiji have warned interest rates will rise after a new law tightening up credit reporting was passed in parliament last week.
The Fair Reporting of Credit Act was passed under urgency and requires credit reporting agencies to obtain a license and have their data verified by the Reserve Bank.
The Association of Banks is disappointed with the new law.
Its chairman Kevin McCarthy said it would be more difficult to get loans and interest rates would be higher as banks looked for compensation for increased risk.
He said there was zero consultation with any of the stakeholders like the Data Bureau, banks and other finance providers.
Fiji's Consumer Council said the new law was the best news ever for Fiji as many aggrieved Fijian consumers had been bullied and blackmailed by the Data Bureau and its members for some time now.
Piggy banks Photo: 123RF
