The period in which lenders must submit information about a client and their obligations to the credit information bureau has been shortened from ten to three days.
Under the current regulations, lenders are required to submit this information no later than 10 business days after the client’s (including guarantor’s) contract becomes effective. The period is being shortened to reduce the risk that banks and other creditors do not have up-to-date information about the consumer’s existing obligations and their ability to repay loans.
This change will also enhance consumer protection and reduce cases in which a consumer suffers financial losses from taking out multiple loans in a short period, with creditors being unaware of each other’s exposure. These changes are outlined in the amendments to Cabinet Regulation No. 327 “Regulations on the Information to Be Included in the Credit Information Bureau Database Regarding Payment Obligations,” which were approved by the government on Tuesday, 21 October.
When assessing a consumer’s ability to repay a loan, lenders will be required to provide information about the borrower’s obligations and payment performance (including delays) both internally and to other lenders. Any changes to lending terms must also be updated within three business days.