Consumer lenders in Latvia obliged to exchange full positive credit history via Credit Bureaus


Changes in Consumer Protection Law adopted by Saeima (Latvian Parliament) obliging consumer lenders to exchange positive credit information about consumer and to use this information in assessment of creditworthiness is a positive step, said “Kredītinformācijas Birojs”.

“Despite the fact that both licensed credit bureaus of Latvia are keeping the data on 95% of loans of individuals issued by banks and almost 90% of loans issued by other consumer creditors, no information was exchanged between these two groups. There was no exchange of the information between both credit bureaus either. Amendments adopted in the Consumer Protection Law and related amendments to the Law on Credit Institutions will at last eliminate these restrictions by ensuring that both groups of creditors have complete information on borrowers’ liabilities and late payments to companies of all other sectors (utilities, telecommunications, debt collection, health care, etc.). An important step has been taken to reduce the fragmentation of credit data and to ensure that information contained in credit history is complete”, tells the Chief of the Board of “Kredītinformācijas Birojs” Janis Timermanis.

The law also put an obligation on credit bureaus to exchange data on credit history so that complete credit history is available to consumer creditor regardless of credit bureau.

“According to information released by both credit bureaus, their databases currently store information about 1.6 million loans issued to consumers by the largest commercial banks and majority of the 60 consumer lenders in Latvia. After the remaining banks and consumer lenders have joined, both credit bureaus will provide lenders information on approximately 1.8 million loans issued to consumers“, said KIB.

In addition to consumer loans, both credit bureaus process information on late payments to major utility, telecommunications, and other companies. Both bureaus provide creditors with information about the borrower’s income, which they receive online from the State Revenue Service. A total of more than 130 companies are currently members of Kredītinformācijas Birojs.