Uzbekistan developing new mechanism for opting out of loans to prevent fraud cases

During a recent session of the Legislative Chamber, a draft law aimed at enhancing the regulatory framework of the lending sector was discussed.

Deputy Chairman of the Central Bank, Abrorkhuja Turdaliev, outlined the rationale behind the proposed law. He highlighted a growing issue where fraudsters take out loans under citizens' names without their consent, misappropriating the funds.

In response, the draft law introduces a mechanism that allows citizens to voluntarily opt out of taking loans. It proposes the establishment of a "Register of Persons Prohibited from Entering into Loan Agreements", where individuals can apply to include themselves. Once registered, no loan agreements can be issued in their name.

This initiative aims to safeguard citizens from unauthorized loans, reduce fraudulent activity, and enhance the efficiency of credit bureau operations.

The draft law successfully passed its first reading and is expected to provide significant protections once fully enacted.