Self-imposed loan bans are being discussed as a potential measure to curb fraud in Russia. While officials acknowledge that this approach could reduce fraudulent activity, experts say it will not eliminate risk entirely. This assessment follows the State Duma’s initial consideration of a bill that would allow citizens to block loan issuance through the government services portal and credit history databases.
According to Olga Daineko, a researcher at the Research Institute of the Ministry of Finance and a contributor to MyFinance.rf, the practice of theft and fraud involving remote loan applications has already created a body of judicial decisions. She notes that it may be easier for individuals to ban loan access upfront than to prove a case after the fact in court. While a self-ban could significantly cut down on credit fraud, it is unlikely to erase it completely.
She also warned of risks that a person under manipulation could remove the ban or gain access to a government services account to bypass restrictions. In addition, self-banning could be useful in cases where personal data is compromised, such as loss of a passport or other identifying information.
To assuage concerns about misuse of personal data, Daineko advised that a quick loan ban could prevent criminals from exploiting a stolen document or sensitive data. The mechanism is particularly relevant when an individual is outside Russia for an extended period, making it harder to manage creditors from abroad.
From her perspective, the prohibition also serves to reduce the temptation to open a new credit product. If an individual recognizes that resisting a new loan offer would be difficult or financially impractical, a ban could provide a practical barrier. With such restrictions in place, purchases on credit or in installments through banks would be blocked, making reckless spending less likely.
The State Duma approved the measure in a first reading, proposing that Russians would be able to self-ban loans through the government services portal and the credit history bureau. The speaker of the lower house, Vyacheslav Volodin, indicated that the ban could apply to all loan types and methods of lending, with the possibility of removing restrictions if needed. The bill, introduced on April 20, 2023 by a group led by Anatoly Aksakov, chair of the financial market committee, aims to give Russian citizens greater control over their borrowing behavior.
Public opinion in Russia on self-prohibition has shown significant support, with about seven in ten respondents previously backing the idea of banning loans and microloans. As the legislation progresses, observers will be watching how effectively such a tool can be integrated into existing credit control systems and what safeguards will be put in place to prevent abuse or circumvention.