The Agency for Regulation and Development of the Financial Market explained in which cases the "stop-credit" service cannot impose restrictions. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
Currently, Kazakhstanis can voluntarily refuse to receive bank loans and microcredits through eGov. This is how the "stop-credit" service is activated. This service allows preventing the processing of an illegal loan in a citizen's name.
However, the legislation provides for special cases where "stop-credit" does not apply.
Cases where the restriction does not apply
They are:
- 01when the amount of a consumer loan is transferred directly to the bank account of the seller of goods, works or services (the borrower must confirm that they are taking the goods on credit);
- 02when a bank loan is used to repay the borrower's debt on another loan in the same bank;
- 03when a bank loan is issued within the established credit limit on a payment card in an amount not exceeding 150 MCI (648,750 tenge);
- 04when taxes, fines or debt under enforcement proceedings are paid through a bank loan.
Similar special cases are provided for microcredits as well. And "stop-credit" does not apply to microcredits issued by pawnshops.
What happens in case of violation
"If a bank loan or microcredit is issued in violation of the requirements of "stop-credit", the financial organization is obliged to take measures provided for by law. In particular, it must write off the loan, correct the credit history and return the collected amount to the borrower," say agency specialists.
We note that this service, which prohibits processing a loan in a person's name, was introduced several years ago.