A new feature has been introduced on the Public Service portal, allowing Russians to voluntarily impose a ban on receiving consumer loans and credits. The aim of this initiative is to enhance the financial security of citizens and prevent cases of fraud.
Upon activation of self-preservation in a user’s credit history, a special mark is recorded indicating the start date of the restriction. From that point onwards, banks and microfinance organizations are obligated to decline any requests for loans and microloans. The ban encompasses all consumer loans and credits, although users have the flexibility to customize it according to their preferences. For example, individuals can opt to prohibit only the remote processing of loans, while still permitting in-person agreements with banks or MFIs.
It is worth noting that the self-imposed ban does not extend to mortgages, educational loans, car loans, or existing credit agreements. To lift the restriction, individuals must submit a request via the Public Service portal using an electronic signature. The legislation enabling the establishment of self-bans for consumer loans and credits came into effect on March 1. The removal of the ban can only be executed after a designated timeframe, which is intended to prevent fraudulent activities associated with simultaneously lifting the restriction and finalizing a loan agreement.
Users are permitted to submit applications free of charge for establishing or removing the ban an unlimited number of times through the Multifunctional Centers (MFC) and the Public Service portal. Prior to entering into any agreements, banks and MFIs are mandated to verify the presence of such bans in all authorized credit bureaus.