Azerbaijan Credit Bureau launches Stop-Credit self-ban service

A new Stop-Credit service has been launched on Findoc, the digital credit history platform developed by Azerbaijan Credit Bureau (ACB) LLC.

According to Report, citing the bureau, the service was developed following amendments approved by the Central Bank of Azerbaijan on June 25 this year to the Rules on Credit Risk Management in Banks and the Rules on Credit Risk Management in Non-Bank Credit Institutions.

The amendments are aimed at minimizing risks in remotely provided financial services and protecting consumer rights by allowing citizens to voluntarily impose a restriction, or self-ban, on taking out consumer loans or increasing credit limits through digital channels.

The Stop-Credit service allows citizens to prevent consumer loans from being issued remotely in their name through digital channels or existing credit limits from being increased.

To use the service, citizens need to log in to the Findoc portal or mobile application and submit a request through the relevant function in their personal account.

Under the Central Bank's amendments, from October 1, credit institutions are required to check whether such a restriction is in place before issuing a loan remotely. Lending may proceed only if no restriction exists.

Citizens can deactivate or reactivate the Stop-Credit service through the portal.

The portal operates 24/7 in real time and currently has more than 225,000 registered users.

Azerbaijan Credit Bureau was established on January 15, 2018. Its charter capital is 2 million manats ($1.18 million).

The bureau was founded by eight banks, each holding a 12.5% stake: International Bank of Azerbaijan, Bank Respublika, Xalq Bank, Kapital Bank, PASHA Bank, Rabitabank, Unibank and Ziraat Bank Azerbaijan OJSC.

ACB collects, stores and analyzes information forming customers' credit histories not only from credit institutions but also from a broader range of sources, including leasing and insurance companies, utility providers, companies selling goods on installment, and other databases containing information on debt obligations.

The bureau also prepares credit reports, assigns individual ratings to borrowers and provides other value-added services.

More than 300 organizations are currently connected to the bureau.