Bill proposes removal of paid debtsfrom credit history

TDT | Manama

Email : editor@newsofbahrain.com

Parliament will debate on Tuesday a bill that would let customers remove entries for fully settled debts from their credit reports. The Financial and Economic Affairs Committee has recommended approval by a majority of members present. The two-article bill would add clause (d) to Article 68 bis 3 of the Central Bank of Bahrain and Financial Institutions Law (Law No. 64 of 2006), allowing customers to request the deletion of credit-report entries once proof of full settlement is provided.

Proponent MP Mohammed Al Maarifi said the change supports Bahrain’s economic vision and consumer rights, encouraging entrepreneurship by ensuring past debts do not hinder new ventures. He added that allowing deletions could help households manage debt responsibly and relieve financial stress.

The Bahrain Chamber of Commerce and Industry opposed the move, warning that processing requests through BENEFIT Company could complicate data management and increase credit risk if documentation checks are insufficient. The Chamber argued that removing debt history contradicts international practice, weakens credit report reliability, and could undermine trust between lenders and customers.

If enacted, the law would take effect the day after publication in the Official Gazette, with the Prime Minister and relevant ministers responsible for implementation.