Credit history reform in Ukraine: new rules and borrower protection

On October 7, 2025, the Verkhovna Rada of Ukraine approved in the first reading draft law №14013 “On Credit Histories”, which forecasts major changes for the Ukrainian lending market, develops a system for borrower rights protection, and regulates the activities of credit history bureaus. This government move meets current challenges arising from the rapid development of financial services, digitization of the banking sector, and European information security standards.

Background to Credit History Reform

Until now, the main legislation on credit histories was based on the Law of Ukraine “On the Organization of Formation and Circulation of Credit Histories” dating back to 2005. But in two decades, lending has become a mass phenomenon, and the storage of personal financial data has become a critical issue. The IMF Memorandum and the rising share of online loans defined the direction for reform: a law is needed to secure personal data protection, increase transparency and the quality of information exchange, and ensure proper state oversight.

Key Provisions of the Draft Law

The bill offers comprehensive changes in credit history management in Ukraine:

• Definition of the scope of data included in the credit history: from financial agreements to information about income, marital status, and dependents.
• Establishing data retention periods — up to 10 years, in line with European approaches.
• Clear procedures for deleting information after the retention period expires.
• Regular updates of credit information by all providers and users.
• Introduction of an electronic Credit History Bureau Register with open access.
• Licensing of credit bureau activities, as well as enhanced requirements for their owners and managers.
• Regulation of cross-border data exchange, with a precise list of permitted countries and a complete ban on operations with aggressor states.

Borrower Rights Protection

Key innovations include guarantees that every citizen will have free access to their credit history, may make changes or request removal of inaccurate data. The law strictly prohibits data use by third parties without the owner’s consent and establishes sanctions for noncompliance. If loan agreements are signed against the borrower’s will, such contracts are null and void.

During martial law, the bill even allows close relatives of a missing person or representatives of the deceased to access the history in a limited way for financial matters.

State Oversight and Control

The draft law strengthens government control through the National Bank of Ukraine. The NBU receives expanded powers to monitor credit bureau operations and may apply sanctions and corrective measures in case of violations.

Creating an electronic Credit Bureau Register will increase transparency for market participants, simplify access for borrowers and creditors, and prevent “shadow” structures from threatening citizen data.

Impact on Market Participants

Creditors will operate more transparently and under stricter control. All creditors must now report regularly to the bureau, providing current data on borrower obligations. This will reduce fraud and inaccuracies and help clients avoid “stuck” debts due to database errors.

For financial institutions, the changes mean extra integration costs with bureaus, tighter data quality standards, and stricter requirements for client information protection.

European Context and Prospects

Ukraine’s credit history bill was developed considering European personal data protection norms (GDPR), financial market transparency, and implements IMF requirements for banking sector risk control.

It is expected that adopting new rules will boost responsible lending, reduce fraud schemes, and increase trust between banks and clients. Financial literacy will grow in importance: citizens will better manage their credit history, access targeted financial products, and protect themselves from manipulations by third parties.

Conclusion

Passing the credit history bill marks an important step in reforming Ukraine’s financial system. The law changes approaches to storing and processing personal financial data, guarantees borrower rights protection, raises creditor accountability, and comprehensively regulates credit bureau operations. Enhanced oversight and transparency will secure data and minimize fraud risks.

Implementing the bill’s provisions will help introduce European standards for the lending market, protect citizens from errors, and financial institutions from opaque schemes. Ukraine is moving closer to a fair, secure, and modern credit system.

Svitlana Krutorohova — Attorney, WINNER Law Firm.
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