Empowering Citizens: Preventing Unauthorized Credit Issuance
President Shavkat Mirziyoyev of Uzbekistan has recently signed a new law amending the “Law on Credit Information Exchange” to empower individuals to impose and remove self-restrictions on credit agreements. This amendment, which was endorsed by the Legislative Chamber in January and the Senate in February, is aimed at preventing the issuance of loans without the individual’s knowledge or consent.
Under the new law, individuals can now introduce self-restrictions to prevent unauthorized loans. Applications for implementing or removing these restrictions can be submitted directly to a credit bureau, through the state services center, or via the Unified Portal of Interactive Public Services.
Once a request is received, the credit bureau must promptly add the applicant to the registry of individuals prohibited from entering into credit agreements. This service is provided at no cost, and the specific procedure for its implementation will be determined by the Cabinet of Ministers.
Furthermore, banks, microfinance organizations, and other credit institutions are now prohibited from issuing loans to citizens without verifying whether the individual is included in the self-restriction registry. Failure to comply may result in legal consequences.
Access to information from the self-restriction registry will be freely available to the public. To ensure the effectiveness of credit bureaus, the law establishes a minimum charter capital requirement of 2 billion UZS and outlines measures and sanctions that the Central Bank may impose for violations.
These sanctions include penalties for violating consumer rights related to credit bureau services, non-compliance with the law on credit information exchange, and obtaining a license through fraudulent means. The Central Bank has the authority to order a credit bureau to rectify violations or impose fines of up to 5,000 BCU (equivalent to 1.875 billion UZS).
The new law is set to take effect three months after its publication, on June 6, with the provision regarding fines for credit bureaus coming into force on July 1, 2026. This legislation represents a significant step towards enhancing consumer protection and promoting responsible lending practices in Uzbekistan.
