Debt collection on online loans obtained through fraud will be suspended

Debt collection on online loans obtained through fraud will be suspended

According to the new regulation, if fraud is identified in online loans, the collection of debt from citizens will be suspended. If a citizen is officially recognized as a victim of fraud under a decision by an inquiry officer, investigator, prosecutor, or a court ruling regarding a fraudulently issued loan, the accrual and collection of the loan and its related interest will not be carried out.

The credit institution may recover the material damage caused by the fraud from the perpetrator through recourse procedures. If, based on the results of an investigation or court decision, it is determined that no fraud occurred, the collection of the loan and interest will continue.

In addition, users of banking and payment applications in Uzbekistan may link only cards and accounts belonging to themselves or their close relatives to mobile applications. The use of other persons’ cards is prohibited. During registration, the phone number and PINFL are verified, biometric identification is mandatory, and if the SMS code is entered incorrectly more than three times, all operations in the application are blocked for 15 minutes. When logging in from another device or restoring a password, linked cards and transaction history are deleted, and re-linking is possible only after biometric verification.

These measures have been introduced to protect citizens’ funds, particularly in the context of the liquidation of Yangi Bank and the increase in fraudulent attacks.