Information on a borrower’s outstanding debt and credit limits across all FIs will enable FIs to better assess whether the borrower is at risk of borrowing beyond his means.
After reviewing the borrower’s aggregate outstanding debt and credit limits, FIs may, at their discretion, decide not to issue new credit cards or unsecured credit facilities, decline applications for credit limit increases, or adjust existing credit facilities.
Before adjustments are made to existing credit facilities, FIs are encouraged to contact the borrower to allow him the opportunity to provide additional information on his financial status, such as updated income documentation.
