Starting November 1, all Kyrgyzstanis will be able to set a self-ban on loans in Tunduk app. Taalaikan Sadabaeva, Chief Inspector of the National Bank’s Consumer Protection Department, announced.
According to her, every citizen will be able to optionally check the box «I prohibit credit transactions in my name.»
If a commercial bank does issue a loan ignoring this self-ban, the financial institution will bear full responsibility, the specialist added.
The new mechanism is aimed at reducing fraudulent transactions and protecting citizens from illegal loans.
At the end of July, the president signed amendments to several legislative acts regarding the exchange of credit information and introduction of a self-ban on credit transactions. Previously, the National Bank proposed supplementing the Law «On the Exchange of Credit Information»:
- with a provision requiring financial institutions to request information from existing credit bureaus about the existence of a self-ban on entering into a credit transaction and to refuse to enter into such a transaction with an individual credit information subject if such a self-ban exists;
- with a provision requiring that setting a self-ban, as well as its removal, be carried out by the individual credit information subject independently, free of charge, through the State Portal of Electronic Services of the Kyrgyz Republic. Information about a self-ban on entering into credit transactions is sent to credit bureaus selected by the credit information subject that set the self-ban.
Banking service providers will be required to request information from existing credit bureaus about the existence of a ban on entering into a credit agreement with a client and to refuse to enter into such an agreement if such a ban exists.
