Answer:
It is not necessary to report anything to a credit bureau. However, there are two qualifications to this answer. First, sometimes the bureaus make your reports to them part of the contract. So check your credit bureau agreements before making a final decision.
Second, not reporting is sometimes looked upon with disfavor by the regulators if not reporting can have an unfair impact on your customers. For example, the OCC has taken the position that not reporting good credit performance of borrowers in a sub-prime lending program inhibits the borrowers' ability to develop a good credit rating. When the institution keeps that information to itself, it isn't playing fair and the OCC may consider this an Unfair Trade Act or Practice (UDAP).
These concerns relate primarily to consumer credit. Commercial and agricultural borrowers don't meet with the same protective concern. So, unless your agreement with the credit bureau requires it, reporting ag and commercial loans is probably voluntary.
First published on BankersOnline.com 10/21/02
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