Law "On credit histories" N 218-FZ with amendments and additions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The law on credit histories contains all the main provisions concerning the functioning of bureaus specializing in loans, financial directories, special government agencies and many other elements that make up the credit system. The content of the Federal Law "On Credit Histories" will be discussed in detail in this article.

Goals of Federal Law

218-FZ "On Credit Histories" establishes the concept and composition of a credit history, the process of its formation, use and storage. The main objectives of the Law are to maintain the efficient operation of credit-type organizations, as well as to increase the level of protection of borrowers and lenders by reducing credit risks. Among other things, Federal Law No. 218-FZ "On Credit Histories" calls the creation and development of conditions for the analysis and storage of credit histories provided to specialized bureaus as the goals.

What kind of relationship is regulated by the Federal Law "On Credit Histories"? Here it is worth highlighting:

• relationships between borrowers and lenders;
• relationshipbetween executive authorities and the state credit bureau;
• relationships between individuals and the Central Credit Catalog.

It is worth talking separately about the concepts used in the normative act in question.

Concepts

The first and probably the most important concept is credit history. Federal law characterizes it as special information, the content of which is determined by special regulations and which is stored in a special bureau.

The next concept is a loan agreement. The law in this case speaks of a document containing the terms of the loan. Here it is worth highlighting the concept of a credit report - a document containing information about the credit history stored in the bureau.

Sources of formation of credit histories are creditor organizations that, under a loan agreement, have the right to write off sums of money from debtors for improper performance of their duties. The subject of credit histories is always an individual or legal entity acting as a borrower, guarantor or principal.

A credit bureau is a legal entity of a commercial type. It is capable of providing services for building and processing credit histories and, among other things, providing credit reports. A credit directory is a division that maintains a database for searching credit bureaus.

What conclusion can be drawn here? All the concepts presented mean one thing: the credit systemis an incredibly wide and voluminous sphere containing a huge number of different branches and areas.

About credit history

The most important element in the credit system is credit history. According to Federal Law No. 218, this is a document consisting of a title part, an information block and a conclusion. Credit history contains all the basic information about the subject of history. This is the surname and name, passport data, TIN, insurance data and more.

The law on credit histories fixes the complete process of providing information to the relevant bureau. The concept of a subject code is introduced. The procedure for the transfer and identification of this code is strictly regulated in Article 5 of the Federal Law "On Credit Histories". It is the duty of credit bureaus to store all necessary information for 10 years.

Rights of subjects of history

The law establishes the basic rights of subjects of credit histories. The subject, for example, has the right to receive information in the Central Catalog about where his credit history is located. In any bureau where the history is located, the subject is able to receive credit reports. In whole or in part, the subject is able to challenge the information contained in the loan history.

To do this, you must submit appropriate applications to credit bureaus. The bureau itself must provide an answer after a monthly check. What might be the answer? There are two options here: either updating the history or canceling it. At the same time, thethe bureau is not obliged to carry out further checks on the disputed information. The subject is also able to appeal against the actions of the bureau in court.

Rights Bureau

What legal options do credit bureaus have?

The Law on Credit Histories establishes the following provisions in Article 9:

• Right to provide legal reporting services.
• The opportunity to engage in the provision of services related to the development of evaluation methods for calculating the ratings of principals and their use. Development should be based on the information contained in the credit history.
• The right to form associations and unions to protect the rights and interests of its members. Coordination of activities, satisfaction of scientific, informational, professional and any other interests - all this can be effectively implemented as part of the association.
• The right to request special information from state authorities, local authorities, the Russian Bank, various types of extra-budgetary funds, etc.

What are the responsibilities of the bureau? This will be discussed later.

Obligations of credit bureaus

According to the Federal Law "On Credit Histories", the state bureau is obliged to qualitatively perform the following types of functions:

• Providing information from credit history cover sheets to the Central Directory.
• Message to the Central Catalog of information about the cancellation of one or anothercredit history - in accordance with the procedure and forms established by the Bank of Russia.
• Providing, free of charge, the source of the history with the opportunity to make changes to the information contained in the credit history.
• Obligation to have and periodically use a license to carry out technical protection of confidential information.
• Issuing a credit report to every credit history holder.
• Inclusion of the changed information in the credit history of the respective subject.

Thus, any credit bureau has a fairly wide range of powers and responsibilities.

Bureau reorganization and liquidation processes

The process of deleting a particular credit organization is enshrined in Article 11 of the Federal Law "On Credit Histories". The Bureau, according to this article, can be liquidated only in the manner prescribed by law. For the entire period of liquidation work, the organization ceases to receive and process information from relevant sources and subjects. Within three days from the date of receipt of the notice of the need for liquidation, the bureau notifies all sources of credit histories about this, places the relevant information in print media - all-Russian and local (at the location of the liquidation).

In the situation with the reorganization, all the necessary workflows will be absolutely identical. The only difference is that in case of liquidation, the bureau has the right to conduct wide auctions related to the saleexisting property.

About the central directory

Finally, it is worth talking about the functioning of the Central Credit Catalog of the Russian Federation. This instance is created by the Bank of Russia. The purpose of the catalog is to collect, store and provide subjects and users of credit histories with information about the respective credit bureaus.

The catalog stores the information that makes up the title parts of each credit history, which is maintained by credit bureaus. The most important function of the Central Directory is to provide information about credit bureaus. Notaries, users and subjects of credit history, lawyers, auditors and some other groups of persons can request information.

On state supervision

23.07.2013 amendments were made to the law on credit histories. Thus, Article 14 of the draft law under consideration now states that state supervision and control of the activities of credit bureaus is carried out by the Bank of Russia in strict accordance with the laws.

What functions does the Bank of Russia perform? Here is what the law states:

• work with the state register of credit bureaus in the manner prescribed by the Bank of Russia;
• setting requirements for the financial position and professional reputation of all members of credit bureaus;
• inspection of compliance of relevant bureaus with the requirements of federal law;
• referral to the bureau of prescriptions for eliminationviolations in one area or another;
• implementation of other functions and duties stipulated by the legislation of the Russian Federation.

The law prescribes a rule according to which any decision of the Bank of Russia can be appealed in court.