Changes in credit histories: risks and prospects

The new draft law on credit history could have a significant impact on the financial reputation of Ukrainians. It expands the list of data in credit histories, changes the mechanisms of information exchange between creditors and bureaus, and allows for additional analytical services. This may improve creditworthiness assessment, but it also raises questions about personal data protection and possible abuse.

Interesting Updates:

• The volume of data collected and stored in credit histories is expected to increase.
• A separate new Register of Credit Bureau is planned to be established.
• The concept of a foreign credit bureau is introduced, along with a list of countries from which requests for borrower information may be satisfied.
• Borrowers will have the option to add information to their credit history indicating their unwillingness to enter into new credit contracts.
• Credit bureaus will no longer be subject to general termination procedures for legal entities, such as bankruptcy or dissolution by owners' decision.

Another notable aspect is that the Verkhovna Rada has submitted this draft law for public discussion – for the first time in the last 15 years! How this process will unfold remains an open question.

Read more about the draft law and the proposed changes in the article by Senior Attorney-At-Law Andriy Ivanov.