From November 1 to November 7, more than 19,000 people in Kyrgyzstan set a self-ban on loans through Tunduk mobile app. The National Bank reported on its Telegram channel.
As a reminder, starting November 1, all Kyrgyzstanis can set a self-ban on loans through Tunduk app. Each citizen can optionally check the box «I prohibit credit transactions in my name.»
It should be noted that if a commercial bank provides a loan ignoring this self-ban, the financial institution bears full responsibility.
The new mechanism is aimed at reducing fraudulent transactions and protecting citizens from illegally taken loans.
At the end of July, the president signed amendments to several legislative acts regarding the exchange of credit information and setting a self-ban on credit transactions.
Previously, the National Bank proposed amending 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;
- 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.
