Frequently Asked Questions

FCB serves its subscribers and the general public to promote economic empowerment and growth. Here are the answers to some frequently asked questions about FCB and its role:

What is a credit and clearing reference bureau?

LFCB complements the role played by the financial services sector by acting as the custodian of historical data for members of the Zimbabwe Financial Clearing Association (ZFCA) regarding individuals' and companies' behaviour that may be shared in order to increase access to finance for those individuals and companies with a good track record and understand the risk of dealing witthose that have a poor history of making payments.

What kind of information and data submitted to FCB and when?

Members of the ZFCA are obliged to regularly submit information and data regarding credit performance of accounts. As a minimum this should be monthly and include all bad debts and compulsory closures. FCB obtains court records as frequently as possible, again typically on a monthly basis.

When is a debt considered "bad"?

This will depend on the specific credit agreement entered into. However, as a rule of thumb, when a repayment reaches 90 days past due then it is usually considered to be "bad" as it must be provisioned for in the balance sheet of the creditor.

When is FCB used by subscribers?

Most ZFCA members are regulated by the RBZ and/or obliged to comply with the Money Laundering and Proceeds of Crime Bill, passed in June 2013. Therefore, every time a new customer is vetted, a new account is opened, and periodically during the life of the relationship, the institution is expected to undertake a Know Your Client (KYC) exercise that will probably include making a search of the FCB database.

Can the information or data held at FCB be disputed, or the record(s) be cleared?

FCB offers a clearance service for individuals or companies wishing to either correct the information held or clear any records held against them. The individual or company representative must present themselves at FCB with suitable identification documentation and pay a fee of US$ 25.- for the clearance service. FCB will then provide details of the information or data held and of the originator of the record(s) so that the process of resolving any disputes, inaccuracies or, in the case of bad debts, clearing the outstanding amounts can be followed to its conclusion.

Am I entitled to see the FCB Report?

ZFCA members are NOT permitted to share FCB Reports with any third party, including the subject of the search. However, the institution making the search should inform you that it uses FCB and provide you with directions as to how to contact or visit FCB's offices in order to avail of FCB's clearance services (see above).