The President of Kyrgyzstan signed amendments to some legislative acts on the issues of exchanging credit information and imposing a self-ban on entering into credit agreements. The press service of the head of state reported.
The purpose of the law is to increase the level of protection of citizens from financial fraud associated with registration of loans without their knowledge, and to eliminate legislative inconsistencies in the exchange of credit information between credit bureaus and financial institutions.
A self-ban is a voluntary refusal by a citizen to enter into consumer credit or loan agreements.
The adopted law amended:
1. The Law «On the Exchange of Credit Information»:
— It is supplemented by a provision that credit institutions are obliged to request information from credit bureaus about the existence of a self-ban on entering into credit agreements and refuse to conclude it with the subject of credit information — an individual — in the event of a valid self-ban;
— It is supplemented by a provision that the self-ban is imposed and lifted by the subject of credit information — an individual — free of charge independently through the state portal of electronic services. Information on the self-ban on entering into credit agreements is sent to credit bureaus at the choice of the subject of credit information that imposed the self-ban.
2. Article 10 of the Law «On Banks and Banking Activities» is supplemented by Part 21 stating that:
— Persons providing banking services are obliged to:
- Request information from existing credit bureaus about the availability of information on imposing the self-ban by the client on entering into credit agreements;
- Refuse to conclude a credit agreement in the presence of a valid self-ban;
— Credit agreements concluded by persons providing banking services with clients without complying with the above requirements are null and void.
