Current legislation governing credit histories has long been out of step with the realities of the digital age. Outdated data, a lack of mechanisms for prompt updates, and, as a result, high levels of fraud—these are just a few of the systemic problems. It is a common practice for citizens to be denied loans due to long-settled debts that are still listed in the database, or, worse still, for fraudsters to take out loans in their names. The new bill aims to address precisely these pressing issues.

There are five fundamental changes that will have the greatest practical impact.

1. Citizens’ “financial profiles” will become significantly more comprehensive. From now on, a credit history will be more than just a list of loans. It will include data on employment history, declared income, and even marital status. From a legal standpoint, this expands the scope of personal data being processed. Lenders will gain a more complete picture, but at the same time, their responsibility for safeguarding this information increases.

2. Lenders are required to act quickly. The bill sets strict deadlines: for consumer loans, they have two business days to submit information to the Credit Bureau (CB). This means that payment discipline will be recorded in near real time. For lenders, this is a new obligation, and the NBU will be able to impose sanctions for noncompliance.

3. Introduction of the “Stop-Credit” mechanism. This is one of the most important new measures for protecting citizens. Anyone will be able to submit a statement to the CHB indicating their unwillingness to enter into loan agreements. In practice, this means that if a lender subsequently grants a loan (to the individual or to a fraudster acting on their behalf), such an agreement will be deemed null and void. This is a powerful preventive tool in the event of lost documents or compromised personal data.

4. The NBU becomes the chief regulator. The National Bank will be empowered to oversee not only banks but also the BKI. It will establish requirements for cybersecurity and data processing rules and will be able to impose penalties for violations. For the market, this is a step toward greater transparency, and for citizens, it provides an additional avenue for challenging unlawful actions.

5. Automated data verification. The bill grants credit bureaus and banks access to the State Register of Civil Status Acts. This will allow them to automatically verify whether the person for whom a loan is being processed is alive. A simple yet effective way to combat a common type of fraud.

New provisions for citizens:

• Enhanced protection against fraud: Citizens will have the right to activate the “Stop-Credit” mechanism at the slightest suspicion (loss of documents, suspicious calls). Submitting a request to the Credit Information Bureau stating that you do not wish to take out loans becomes an effective preventive measure.

• Data relevance: The right to a free annual review of one’s own credit history remains in effect. Given the rapid updating of data, regular monitoring becomes even more important.

• Appeal Procedure: The procedure for appealing inaccuracies involves contacting not the Credit Bureau, but directly the lender that provided the incorrect data. The law establishes a 15-day deadline for reviewing such a request.

For Businesses (Lenders):

• Need to Update Internal Procedures: Lending companies will need to adapt their processes to ensure prompt (within 2 days) updates to data in the Credit Bureau.

• Implementation of a mandatory check: The consumer loan origination process must now include a mandatory inquiry to the Credit Bureau regarding the existence of a “stop-credit” request from the borrower. Failure to comply with this requirement creates a direct financial risk that the contract may be deemed void.

• Revision of the contractual framework: Documents (agreements, data processing consents) must clearly inform the customer about the transfer of information to the Credit Bureau and comply with the new legal requirements.

Conclusion

The draft law “On Credit History” is a significant step toward modernizing the financial market. It creates a more balanced system where borrowers’ rights are better protected and lenders’ obligations are more clearly defined. The effectiveness of the law will depend on the quality of supervision by the National Bank of Ukraine (NBU) and the good-faith compliance of market participants with the new rules. For the legal profession, this opens up new opportunities in the area of protecting the rights of consumers of financial services, particularly in cases involving credit fraud.