Ukrainians Can Block Loans Taken Out in Their Name via the 'Diia' App or Administrative Service Centers.

Introducing a Self-Restriction Mechanism

According to TSN.ua: Ukraine is set to launch a self-restriction mechanism that allows citizens to block loans from being issued in their name, aiming to combat financial fraud. This new tool can be activated through the 'Diia' app or by submitting a request at Centers for Administrative Services (CNAP). The initiative is tied to the passage of a bill on credit history bureaus, designed to bolster financial security for individuals.

Bill No. 14013 is currently under review in the Verkhovna Rada and needs approval in its second reading. The document has already been adopted as a basis, with provisions being refined to align with existing legislation. Olha Vasylevska-Smahliuk, a member of the Parliamentary Committee on Finance, Tax, and Customs Policy, emphasized the initiative's significance, noting that Ukrainians can activate the self-restriction via the 'Diia' app or file a corresponding application at a CNAP.

This mechanism will help combat fraudsters who take out loans today, leaving the person whose name the loan was issued in to foot the bill.

Olha Vasylevska-Smahliuk

The Importance of the New Mechanism

The introduction of this self-restriction tool addresses the growing issue of financial fraud in Ukraine, which has sparked serious concerns among the public. This step also underscores the Ukrainian government's commitment to creating a safer environment for consumers of financial services, a critical priority amid economic instability.

If successfully implemented, the new instrument could significantly reduce risks associated with loans taken out in someone else's name and enhance trust in the country's financial system.