Law "On Credit Histories" N 218-FZ with amendments and additions

The Law on Credit Histories contains all the main provisions concerning the functioning of bureaus specializing in loans, financial catalogs, special state bodies 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.

Objectives of the Federal Law

218-FZ "On Credit Histories" fixes the concept and composition of 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 improve the level of protection of borrowers and creditors by reducing credit risks. Among other things, Federal Law No. 218-FZ "On Credit Histories" calls for the creation and development of conditions for the analysis and storage of credit histories provided to specialized bureaus.

What relations are regulated by the Federal Law "On Credit Histories"? Here it is worth highlighting:

• Relations between borrowers and creditors;
• Relations between executive authorities and the state credit bureau;
• Relations between individuals and the Central Credit Catalog.

Separately it is necessary to tell about the concepts used in the considered normative act.

Concepts

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

The next concept is a loan agreement. The law in this case is about 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 education of credit histories are creditor organizations that, under a loan agreement, have the right to write off money from debtors for improper performance of their duties. The subject of credit histories is always a natural or legal person acting as a borrower, guarantor or principal.

The credit history bureau is a legal entity of a commercial type. It is able to provide services for the construction and processing of credit histories and, among other things, the provision of credit reports. A credit catalog is a subdivision that runs a database to search for credit bureaus.

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

About Credit History

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

The Law on Credit Histories secures the full process of providing information to the relevant bureau. The concept of the subject code is introduced. The order of transfer and identification of this code is strictly regulated in Article 5 of the Federal Law "On Credit Histories". The responsibility of the credit bureau is to store all the 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 about where his credit history is located in the Central Catalog. In any bureau, where the history is located, the subject is able to receive credit reports. In full or in part the subject is able to challenge the information contained in the history of the loan. For this, it is necessary to file appropriate applications with credit bureaus. The bureau itself must provide a response upon expiration of a one-month check. What can contain the answer? There are two options: either the history update, or its cancellation. At the same time, the bureau itself is not obliged to conduct further checks of the disputed information. The subject is also able to appeal the actions of the bureau in a judicial procedure.

Rights Bureau

What are the legal possibilities of credit bureaus? The Law on Credit Histories establishes the following provisions in Article 9:

• The right to provide services for the provision of reports in accordance with the procedure established by law.
• The opportunity to engage in the provision of services related to the development of valuation techniques for calculating the ratings of trustees and their use. Development should be based on information that is contained in the credit history.
• The right to establish associations and unions to protect the rights and interests of its members. Coordination of activities, satisfaction of scientific, information, professional and any other interests can all be effectively implemented within the association.
• The right to request special information from state authorities, local government authorities, the Russian Bank, various types of extra-budgetary funds, etc.

And what duties does the bureau have? This will be discussed later.

Duties of credit bureaus

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

• Providing information from the title pages of credit histories to the Central Catalog.
• A message to the Central Catalog of information on the cancellation of a particular credit history - in accordance with the procedure and forms established by the Bank of Russia.
• Granting on a gratuitous basis to the source of history the opportunity to make changes in the information contained in the credit history.
• Obligation to have and periodically use a license for the technical protection of confidential information.
• Issuance of a credit report to each holder of the credit history.
• Inclusion of changed information in the credit history of the relevant entity.

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

Processes of reorganization and liquidation of bureaus

The process of removing a particular credit institution is enshrined in Article 11 of the Federal Law on Credit Histories. The Bureau, according to this article, can be liquidated only in accordance with the procedure established by law. For the entire period of liquidation work, the organization ceases to receive and process information from relevant sources and entities. Within three days from the receipt of the notification on the need for liquidation of the bureau, notifies all sources of credit histories, places relevant information in printed publications - all-Russian and local (at the location of liquidation).

In a situation with reorganization, all the necessary work processes will be absolutely identical. The only difference is that when the bureau is liquidated, it has the right to conduct broad trades connected with the sale of existing property.

About the Central Catalog

It is worthwhile, at last, to tell about the functioning of the Central Credit Catalog of the Russian Federation. This institution is created by the Bank of Russia. The purpose of the catalog is to collect, store and provide the subjects and user of credit histories with information about the relevant credit history bureaus.

The catalog deals with the storage of information that forms the title sections of each credit history, which is maintained by credit bureaus. The most important function of the Central Catalog is to provide information on credit bureaus. Notaries, users and subjects of credit history, lawyers, auditors and some other groups of persons can ask for information.

On state supervision

July 23, 2013, the law on credit histories was amended. Thus, Article 14 of the draft law now provides that state supervision and control over the activities of credit bureaus is carried out by the Bank of Russia in strict compliance with the laws.

What are the functions of the Bank of Russia? Here is what the law fixes:

• Work with the state register of credit bureaus in accordance with the procedure established by the Bank of Russia;
• The establishment of requirements for the financial position and professional reputation of all participants of credit bureaus;
• Carrying out of checks on observance by corresponding bureaus of requirements of the federal law;
• Sending to the bureau instructions for the elimination of violations in one area or another;
• Implementation of other functions and responsibilities provided for 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.