Where a reportable credit agreement is entered on or after 1 February 2025, and a guarantee is entered into in respect of that credit agreement on or after 1 February 2025, the relevant credit information provider (CIP) will be required to report data in relation to both the guarantee and the guarantor from that date onwards to the Central Credit Register (CCR), operated by the Central Bank of Ireland.

This requirement will apply whether the guarantee is an ‘all sums due’ guarantee, or a more limited form of guarantee.

Reporting to the Central Credit Register

For in-scope guarantees, the CIP will need to report information in respect of both the guarantor and the guarantee.  If the guarantor isn’t an existing customer of the CIP, the CIP must create a unique customer number for them to enable reporting to take place.  When reporting information in respect of the guarantor, the CIP must identify their role as that of guarantor.

An in-scope guarantee will be reportable as one of the following: a Personal Guarantee, a Limited Personal Guarantee, a Corporate Guarantee, a Limited Corporate Guarantee or an Other Guarantee.

If the guarantee is for the full amount of the debt, or is unlimited, it should be reported as a Personal Guarantee or a Corporate Guarantee (depending on whether it’s provided by an individual or a corporate).

If a guarantee is for part of the debt, it should be reported as a Limited Personal Guarantee or a Limited Corporate Guarantee (again depending on whether it’s provided by an individual or a corporate).  This is only relevant where, for instance, a guarantor guarantees a percentage of the debt.  A guarantee that is limited in time rather than in amount will be reportable as a Personal or Corporate Guarantee, and not as a Limited Personal or Limited Corporate Guarantee.

If the CIP is satisfied that the above options don’t accurately reflect the nature of the guarantee, it should be reported as an Other Guarantee.

There will be no limit on the number of guarantees that can be reported in respect of one credit agreement.

Enforcement of Guarantees

If the CIP makes a demand under a guarantee, it must report this to the CCR.  However, there is no requirement for the CIP to report the issuing of legal proceedings against the guarantor or any restructuring of the guarantee.

Accessing information on Guarantees / Guarantors

Under the legal framework underpinning the CCR, a CIP has the power, but is not required, to search the CCR in respect of an individual or corporate who offers to give guarantee in respect of credit exceeding €500.

The CIP will also be allowed to (but will not be required to) access the CCR where there’s a proposal to change the nature or term of a guarantee, or where a guarantor breaches their obligations under the guarantee.

Information obtained by a CIP in respect of a guarantor may only be used to (a) verify information provided in respect of the related credit application; (b) evaluate any risk arising from taking that guarantee; (c) evaluate any risk arising from any changes to the nature or term of any guarantee given by that guarantor; (d) monitor any (unremedied) failure to comply with any guarantee given in connection with a credit agreement; (e) evaluate whether to make any proposal or arrangement with respect to the debts of the relevant borrower; or (f) analyse the nature of the CIP’s portfolio of credit agreements.

Notices / Warnings

It is important to remember that the Credit Reporting Act 2013 requires that credit information subjects (including guarantors) are made aware, by CIPs, of their rights and duties under that Act.  In practical terms, in commercial transactions this is usually set out on the front page of the relevant guarantee (in the form of a warning notice) when a draft is provided to the guarantor for review.  That warning should also inform the guarantor that information may be reported to the CCR, and may be obtained by other lenders when assessing applications.

Please get in touch with your usual contact in the Arthur Cox Debt Finance group to discuss the above in more detail.