One of the first credit bureaus was created in May 2003 by the Association of Russian Banks (ARB) and major credit bureau TransUnion. In late 2004, there was one large office, founded by the Interfax news agency and the famous credit bureau Experian.
The law avows that the major document according to which the banks will be able to judge the credit standing of the borrower will be the credit report that is information that characterizes the discharge of assumed duties under the credit contracts by the mutuary. This information will be stored in the credit bureau – a specialized company that collects and disseminates information about positive and negative aspects of corporate and physical bodies applying for a credit. According to the law, any bank has to make a contract with at least one credit bureau.
Collection and exchange of data between banks and credit bureau is done only with the written consent of the debtor. The bank has a right to request a credit report with the written consent of the debtor and give information about an issued loan to the credit bureau – again, only with the written consent of the loan subscriber. In practice, it is simple: a standard application about credit issuance has an additional item that the debtor does not object to check the intelligence specified in the application.
If a positive decision is taken and the credit is given, the bank has to inform the credit bureau in the shortest space of time. The standard loan contract has a separate item that the debtor does not mind to transmit intelligence to the credit bureau. And if the debtor opposes, then, in theory, the information is not going anywhere, but…
Here the main “but” arises. Surely, no one cancels the priority of rights of the mutuary, but if he does not give consent to give credit information to the credit bureau, it can be one and sufficient reason to refuse him in getting a loan! That is, such a behavior is clearly regarded by banks as an intention to hide something.
Those who managed to get a loan for any purpose certainly have to order credit reports regularly. These reports can show you a real picture of your credit but in many cases the reports are very complicated to understand. Here you can make use of credit report monitoring service – they will make the reports easy to understand.