The correct answer is A. To maintain transparency and prevent shock score drops, Credit Institutions (CIs) must proactively send alerts (via SMS or email) to their customers precisely when they are submitting negative information to CICs regarding a default or "days past due" (DPD) on their existing credit facilities.

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This ensures the borrower is immediately aware that a negative mark is being registered on their credit profile.

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Routine updates like repayment processing or limit increases do not carry this strict statutory alert mandate.