Information Utilities

Your credit score sits in a database that your bank, a lender and a card company can all consult, and nobody has to take your word for what you owe. Before the Insolvency and Bankruptcy Code, a company in default could argue about every loan in court for years, because the records were scattered across lenders’ ledgers. The Code’s answer was an electronic record office that stores verified financial information and is open to anyone with a legitimate need. What is an information utility, and how does it shorten the fight over who owes what?

In two minutes

An information utility is a person registered with the IBBI under s.210 to store, authenticate and provide access to financial information of debtors in a universally accessible electronic form, so that default and debt can be proved from a record that the debtor has had a chance to confirm.

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