Credit History

There are three parts in the credit history: the title part, the main part and the closed part.

The title part includes information about the subject of credit history - a physical or legal entity, which make it possible to identify the borrower. You can read more in the Federal Law.

The main part includes information related to the obligations - the date of issue, the date of repayment, monthly payment, etc.

The closed part contains information about the source of the credit history, as well as about the user of the credit history.

Credit histories are stored in the credit history bureau for 15 years after repayment.

Credit History Disclosed:

• to the subject of credit history - at his request to familiarize himself with his credit history;
• user of credit history - upon his request with the consent of the subject of credit history;
• in the Central Catalogue of Credit Histories - the cover part of the credit report;
• to the court (judge) in the criminal case in its proceedings, and if the prosecutor agrees to the preliminary investigation bodies in the initiated criminal case in their proceedings, an additional (closed) part of the credit history.

According to the bill, which was submitted by the Government of the Russian Federation to the State Duma on the last working day of 2013, banks and microfinance organizations will be obliged to transfer information about borrowers-legal entities and individual entrepreneurs to the credit history bureau without their consent, information will be sent to individuals only if the client agrees to conduct this procedure.

The document also defines the user of the credit history, regulates the procedure for assigning rights of claim and changing the creditor under credit agreements, and also prescribes the norm for displaying the full value of the loan in the credit history. In addition, all information on the judicial collection of debts under civil law agreements, in addition to loan agreements, will now be transferred to the BCI. All credit history bureaus, in turn, will be obliged to transmit information about subjects of credit history to state authorities, courts, notaries, according to requests within the framework of their activities.

Lending in Russia

• Lending in Russia (indebtedness)
• Collection agencies (Russian market)
• Code of Ethics and Standards for Dealing with Overdue Debt in Microfinance Market

Credit scoring

Main item: Credit scoring

2021: EAEU countries start exchanging credit stories of citizens

On November 19, 2021, the countries of the Eurasian Economic Union (EAEU) agreed to exchange data from citizens' credit histories.

As the Prime Minister of the Russian Federation explained Mikhail Mishustin at a meeting of the EAEU intergovernmental council in, Yerevan citizens,,, and Russia Kazakhstan" Belarus Kyrgyzstan Armenia will receive equal opportunities when applying for loans throughout the union." Thus, Russians will be able to take loans banks in Belarus, Kazakhstan, Kyrgyzstan and Armenia, and residents of these countries - in Russian banks, they say. "Sheets

Previously, banks were reluctant to issue loans to non-residents, including due to the difficulty of checking the borrower. After the signing of the agreement by the member countries of the Eurasian Economic Union to make a decision on lending to a citizen of the EAEU, banks in these countries will be able to check the history of the client, regardless of which of these countries he is a citizen.

If a foreign borrower receives a loan and does not return it in the EAEU country, then at home when receiving a loan, he will have problems due to a poor credit history.

Earlier, in a conversation with Kommersant, Elena Dokuchaeva, chairman of the board of directors of the Sequoia Credit Consolidation collection agency, commenting on the plans of the EAE countries to exchange data from credit histories, noted that it is theoretically possible to collect debts abroad through bailiffs.

We appeal to our foreign colleagues when a domestic borrower hides in other countries. And they turn to us when the debtor is in Russia, and usually we manage to recover the debt, "she said.

At the same time, Dokuchaeva emphasized that debt collection was possible, as a rule, when it came to large amounts, and there was no such practice for small debts.^[1]

2020

Central Bank tightens information processing standards for BCI

At the end of October 2020, the Central Bank of the Russian Federation published a regulation in which the regulator decided to tighten the requirements for information transmitted in credit history.

According to Kommersant, citing this document, credit data will be recognized by the regulator as unreliable or suspicious if their source was registered as a legal entity less than three years ago and first transmitted the information to the bureau less than six months ago.

In addition, the Central Bank intends to evaluate the information as suspicious, if the loan agreement was concluded less than three years ago, there is no data on delays or late payments. Data on the concluded agreement and terminated in less than two weeks will fall under the same category.

Central Bank of the Russian Federation tightens information processing standards for BCI

According to market participants interviewed by the publication, the regulator's initiative is devoted to the unification of data transfer and storage formats in the BKI, changes will not require additional investments in NBKI technologies. Also, new requirements are the continuation of the work of the Central Bank on reforming the BCI market with the introduction of qualified bureaus.

The position of the Central Bank was also influenced by the increasing practice of introducing state measures to support borrowers, BCI representatives say. The document was developed by the regulator to standardize credit reports, as well as to combat the falsification of credit stories, said CEO Arthur Alexandrovich.

Levan Nazarov, founder of Balance Platform, agrees that the Central Bank's initiatives "will probably complicate the work process, as they will require new capacities from BCI not only to collect, but also to store information, and from banks - time and resources to adapt to new realities."

One of the interlocutors of the newspaper expressed concern that due to the introduction of a single format, the competitive advantages of individual BCI will be eliminated, service services for creditors may suffer.^[2]

Sberbank granted corporate clients access to credit history

Sberbank together with HES Fintech in January 2020 provided its corporate customers with access to credit history through Sberbank Business Online.

Reports from the Joint Credit Bureau (JAB) and the National Bureau of Credit Histories (NBCI) are available to customers. The service allows you to identify possible negative aspects of the credit history, make timely adjustments and get rid of errors in personal data or credit information.

The cost of a report with a credit history for individual entrepreneurs is 960 rubles, for legal entities - 1490 rubles.

Alexey Shashkin, Director of the Small and Micro Business Division of Sberbank: "Under current legislation, in order to obtain a credit history, a subject needs to personally contact a credit bureau and undergo a personal identification procedure. At branches of some banks that credit bureaus trust with identification, you can also buy a report on your credit history. There are also online services with offers to buy reports over the Internet, in this case, the client needs to personally come to the office of the identifying organization. The service for Sberbank customers is implemented on the principle of "one window" - ordered, paid for, received. Now you do not need to collect a package of documents and undergo additional identification. This will save our customers time. "

2019

Russians can find out a personal credit rating

From January 31, Russians will be able to find out their personal credit rating, which will take into account, among other things, the presence of late payments, the level of debt burden, the "age" of credit history in order to determine the level of credit risk of a person.

Personal credit rating is enshrined in amendments to the federal law "On Credit Histories." The document provides that together with the credit report, credit history bureaus will issue the borrower with his individual rating in points: the higher the score, the lower the level of credit risk of a person.

Moreover, now the Russians will be able to receive a credit report twice for free: once in paper and electronic forms. It also became possible to request a credit report through remote channels, for example, through the personal offices of banks or using the Unified Identification and Authentication System (ESIA).

Earlier, the United Credit Bureau, following an assessment, reported that more than 60.5 million Russians (78%) have a high credit rating. The average rating of 9% of borrowers, or 7.4 million people, has a low credit rating of 13%, or 9.8 million people.

How to ruin your credit history?

The Bureau of Credit Histories (in Russia there are 13 such organizations) considers unscrupulous those borrowers who^[3]:

• late payment of interest on the loan;
• does not make payments on time on the principal body of the loan without good reason;
• there are serious delays, but the borrower did not apply for refinancing;
• there were problematic loans due to fraudsters who received money using the documents of another person;
• the bank for some reason did not send to the Bureau of Credit Histories information about the closure of the loan by the borrower;
• the borrower sues the bank;
• there are debts on utility payments, alimony or fines that are paid forcibly after the trial.

All these reasons are sufficient for the bank and even some MFIs to refuse to issue a loan. At the same time, the borrower may not be aware that someone took out a loan in his name, nor that the bank did not note the return of borrowed funds.

According to the participants of the Association for the Development of Repayment Leasing, among the most common reasons for non-repayment of debt are contesting the amount of debt, deterioration of financial condition, loss of work, lack of understanding of loan conditions, unwillingness to repay the loan.

How to get money if the credit story is corrupted?

If money is needed, and the bank does not give a loan due to a spoiled credit history, you should not despair, there is a way out - not even one, but several.

Credit card processing with a set limit. You can do this in almost any bank if you need a not very large amount. Most banks will issue such a card, since the risks to them are minimal: the funds that can be obtained in this way are small. With the help of a credit card, you can correct your history - for this you need to withdraw small amounts of money and return them ahead of the deadline set by the bank. There are practically no disadvantages to this method.

Microloan. It can be issued by MFIs, such organizations usually issue loans without additional checks, the provision of income certificates and surety. The money is handed out within minutes of the applicant's appeal. The problem with microloans is that they are charged high interest. It is better to return such a loan ahead of schedule, since MFIs also transfer data to the Bureau of Credit Histories.

Return leasing. A relatively new financial instrument that makes it possible to obtain funds as collateral for property. This option is available to both private and legal entities. Leasing has a big plus in that the contract can be executed for a long time, in addition, it takes a minimum of time and documents in order to get financing. The downside is that if the conditions are grossly violated, then the lessor has the right to terminate the contract, and keep the property.

Credit from a private person. Yes, you can borrow money from friends, relatives, acquaintances or from those people who do this professionally. The advantages are that you can get money quickly. There are many more disadvantages: for example, if the return of debt is overdue, relations can be seriously spoiled. Or pay large interest on a loan established by a "professional" lender. But if this lender is a representative of the shadow structure, then there will be many problems.

In the bank. If banks refused all borrowers with problematic credit histories, the volume of lending would fall several times. It is beneficial for banks to help their customers, for which there are special programs. They have a few pros. So, in addition to the possibility of receiving money, the borrower can correct his credit history using such a program. True, only if the loan is paid in full and on time.

Another option is to refinance the loan, when a new one is allocated to repay the previous loan. But in this case, it is worth carefully calculating your capabilities. If the borrower could not repay the first loan, how is he going to settle with the second?

In general, banks are the main source of credit funds. According to our assessment, the share of the remaining channels is insignificant and represents the share of interest in relation to the banking sector. As for additional sources of funds, the most popular among individuals are MFIs, shadow structures, pawnshops, loans for TCP, acquaintances and friends, loans for an apartment.

2012:32% of borrowers have no credit history

According to Equifax (December 2012), the number of borrowers who do not have a credit history has significantly decreased in Russia. While more than half (57 per cent) were in 2008, only 32 per cent remained by the end of 2012.

Notes