In early October, the parliament adopted in the first reading the draft law “On credit history” (No. 14013). Its adoption is provided for by the Memorandum on Economic and Financial Policy with the IMF, and the goal is to strengthen the protection of borrowers’ rights, improve the exchange of information in the credit market and improve its quality.The draft law on credit history is expected to promote responsible lending and ensure that credit history is used only for assessing creditworthiness, managing risks and identifying clients.
First of all, the document specifies the list of information included in the credit history, its storage period (up to 10 years) and the mechanisms for its destruction after the expiration of this period. Lenders will be obliged to transfer data to credit history bureaus within two business days - this eliminates delays and reduces the risks of fraud. The draft law defines the legal principles for disclosing information that constitutes banking secrecy or financial service secrecy.One of the main innovations is the “stop-credit” mechanism – each citizen will be able to declare their unwillingness to conclude new credit agreements. Any credit issued after such a declaration may be declared null and void. This significantly increases the protection of citizens from fraudulent schemes and credit pressure.In addition, the draft law guarantees the right of a citizen to free access to their own credit history and the ability to correct or delete inaccurate data.
The procedure for updating information about the history in the event of assignment of the right to claim a loan, in particular in the event of the lender’s withdrawal from the market, is also improved. At the same time, the document tightens the requirements for credit bureaus – in particular, for their ownership structure, management reputation, internal control systems, cyber protection and information security. The possibility of cross-border data exchange between bureaus with the borrower’s consent is also introduced, and a list of countries with which such exchange is permitted is determined.The National Bank of Ukraine will exercise control over the activities of credit history bureaus. The NBU will have the right to apply corrective measures and measures of influence for violations of the requirements of the legislation.A very important innovation is the creation of a public electronic Register of credit history bureaus.
Source: https://fintechinsider.com.ua/stvorennya-reyestru-ta-pytannya-bankivskoyi-tayemnyczi-shho-zminyt-zakon-pro-kredytnu-istoriyu/
