Loan information to be collected in a register – this is the Positive credit register

The Positive credit register will collect information about the loans of private individuals. The register is to be rolled out in spring 2024.

The Government Proposal for the act on the Positive credit register was submitted to the Finnish Parliament on 24 February. The register is proposed to be implemented by the Tax Administration’s Incomes Register Unit, where work on the implementation has already begun. The register is expected to provide private individuals with new opportunities to control their finances.

Better overview of your loans

The register will be accessible to private individuals through an e-service, where people can view information about all their loans. When you have an overall view of your loans, you can better assess whether you can take out new loans. At the moment it is more difficult to obtain an overview because the information must be searched for in various lenders’ services.

Voluntary ban on credits without a charge

If you are a private individual, you can set a voluntary ban on credits in the e-service either for the time being or for a fixed period. The voluntary ban on credits may be useful and serve as a safeguard if you suspect you have been subjected to an identity theft. You can lift the voluntary ban on credits at any time. The ban does not prevent you from obtaining a loan but it is an effective way of telling the lender that the loan applicant’s identity should be checked even more carefully than usual.

Decreases the loan applicant’s need to provide information for the bank

When the Positive credit register is in place, private individuals do not necessarily have to collect information about their personal finances or submit it to the bank because the lender can see the loan applicant’s income and loan information in a credit register extract. However, the lender can still ask the applicant to provide documentation.

Lenders submit the information to the register

Private individuals do not need to submit information about their loans to the register: the reporting obligation rests with the lenders, for example the banks and credit institutions. When the register starts operating in April 2024, the lenders start reporting all consumer credits to it. The register will receive information about all home loans, vehicle loans, consumption loans, credit cards, student loans and hire-purchase credits granted to private individuals. The information that the lenders will have to report includes the amount of the loan principal, any payment transactions related to it, and amortization delays of more than 60 days.

Credit register extract to support the credit decision – information enquiries leave a trace

Lenders are obliged to request a credit register extract from the register when a private individual submits an application for a new loan or for a change to the terms of their existing loan. The register extract contains information about the individual’s existing loans and any income information available in the Incomes Register about the person’s wages, pensions and benefits. The lender can therefore make a credit decision based on up-to-date information and better assess the person’s ability to pay. Lenders using the register will be charged a fee.

The Positive credit register discloses credit information only to parties that are legally entitled to use the information, i.e. to credit institutions and certain authorities. In the e-service, individuals can check which lenders have requested their information and why.

Creating a new national register is a joint effort

The Tax Administration has worked in close cooperation with register users from the very beginning.
“The work is progressing well. We have been conducting an active dialogue with stakeholders, surveying their needs from day one. Our objective is that all future users would find the register useful and easy to use,” says Virpi Pikkarainen, Program Director at the Tax Administration.
“Usability testing on private individuals’ e-service is currently ongoing, and the aim is to learn what the register’s future users expect from the e-service.”

Five facts: the Positive credit register

• Establishing the Positive credit register is one of the measures taken by Sanna Marin’s Government to fight over-indebtedness.
• The register will be rolled out in two stages: Starting 1 April 2024, information about consumer credits and comparable other loans issued to private individuals are collected in the register. Such loans include home loans, student loans, consumption loans and credit card credits. Starting 1 April 2026, information about other loans issued to private individuals, such as loans issued for purposes of business or agriculture, are added to the register.
• The register also provides authorities with reliable information about the credit market and makes it easier to monitor and control the market.
• The Tax Administration has commissioned services relating to the register’s technical implementation from Gofore, Innofactor, Qentinel, Tietoevry, Knowit Solutions, F-Secure, Visma Consulting and others.
• Subscribe to the Positive credit register newsletter and follow the website: www.positivecreditregister.fi. Twitter: @luottotietorek

Further information:

Ministry of Justice 24 Feb. 2022: The Positive credit register will fight over-indebtedness (available in Finnish and Swedish)