Currently, in some cases, instances of misappropriation of funds are observed, such as formalizing a loan in a citizen's name or increasing existing credit limits by creating additional obligations through their account.
Modern.az reports that these remarks were made by Ulvi Gurbanov, Head of the Market Conduct Policy Division of the Market Conduct Regulation Department of the Central Bank of the Republic of Azerbaijan, at a forum on “Consumers in the Modern Digital World: E-commerce, Digital Services, and Security Issues” held on March 12, World Consumer Rights Day.
U. Gurbanov stated that this problem exists not only in Azerbaijan but also in international practice.
The official added that the voluntary credit ban mechanism is applied in several countries – Russia, Singapore, Finland, and Australia. According to him, the issue of implementing this mechanism in Azerbaijan is also being considered:
“If implemented, this mechanism will allow consumers to prohibit the remote formalization of loans in their name by applying in advance through a single platform, namely the Credit Bureau. In this case, no financial institution, credit organization, or bank will be able to approve a remote loan or increase a credit limit in the citizen's name, even if their account is taken over by third parties.”
He also emphasized that no matter how many preventive mechanisms are implemented and platforms are strengthened, the primary responsibility and decision-making party is the citizen themselves:
“From this perspective, educating citizens is of particular importance. As the Central Bank, we regularly conduct awareness-raising activities in this direction together with various state institutions and financial associations, and continuing this activity in the future is also among our priority areas,” U. Gurbanov noted.
