Changing your passport can ruin your credit history: how to avoid problems

The obligation to notify the creditor about changes in personal data is enshrined in Russian legislation. Moreover, this concerns not only passport data, but also, for example, a change in residential address or telephone number. Elman Mekhtiev, founder of the credit history checking service Kredcheck, told MK about what changes are important for the bank and why ignoring them can lead to serious consequences - from fines to a worsening credit history.

- Is the borrower obliged to inform the bank about changes in his/her data? Where and under what conditions does this obligation arise?

- In short, yes, it is obliged. And this is not just the bank's desire, but a requirement of the Russian Federation legislation. The obligation to update data is necessary, first of all, to comply with the legislation on combating money laundering and the financing of terrorism (AML/CFT), both on the part of the client and the bank. Therefore, banks always include conditions for updating information in the agreement. Moreover, the obligation to notify the bank arises from the moment the agreement is concluded and is valid for the entire term of its validity.

- What information is required to conclude a loan agreement?

- First of all, personal data that allows identifying the borrower: last name, first name, patronymic, passport details, date of birth, TIN, SNILS. Also indicated are the registration address and actual residential address, contact details - telephone number and email address. In addition, to assess solvency, the lender requests information on income: sources, amount, and, if necessary, information on property.

- What changes in personal data must the borrower notify the bank about?

- About any. The reasons for changes may be different: change of surname, obtaining a new passport, change of registration address or place of residence, marriage or divorce, change of citizenship, change of contact phone number or email address, change of job. It is important to remember: notifying the bank about changes in this data is the borrower's responsibility. Failure to comply may lead to unexpected consequences. Therefore, in case of any changes - be it surname, passport, address, phone - it is necessary to notify the bank, microfinance organization (MFO), credit consumer cooperative (CCC) or agricultural credit cooperative (ACCC) as soon as possible.

- How does notification occur?

- Usually the procedure and method of notification are specified in the agreement. When signing the agreement, the borrower must carefully read these conditions: in what form and within what time frame the changes must be reported. This may be a written statement at a bank branch, or a notification via an online bank or mobile application. In most cases, up to 30 days are allocated for notification, but there are also periods of 10 days.

- What happens if the borrower does not inform the bank about the changes?

- If the borrower does not comply with the terms of the agreement, this may entail penalties, and in some cases - early collection of the entire debt. The bank also has the right to suspend transactions on the account until the data is clarified. Banks take compliance with AML/CFT legislation seriously - they face fines for violations. Therefore, they strictly monitor the relevance of customer data.

- How can this affect your credit history and how can you avoid problems?

- If the borrower has an overdue debt, and the bank cannot contact him due to outdated data, this may be regarded as ignoring financial obligations. As a result, the bank may speed up the debt collection process in court, and information about this will be reflected in the credit history. This will greatly worsen the chances of getting a loan in the future. Borrowers often forget to pay minor debts and thus lose contact with the bank, especially if they have not interacted for a long time. But the debt continues to grow. Therefore, it is extremely important to notify the bank of changes in a timely manner and regularly check your credit history. This can be done free of charge twice a year at any of the four qualified credit history bureaus. And through specialized verification services - up to 12 times a year.