New requirements for the remote issuance of consumer loans come into force in Azerbaijan on October 1. The changes were made to the rules for managing credit risks for banks and non-bank credit organizations (NBCOs) by a decision of Central Bank Chairman Taleh Kazimov dated April 28.
Under the new rules, banks and NBCOs must give clients the option, upon their written request, to prohibit the remote conclusion of a consumer loan agreement or the remote modification of an agreement to increase the credit limit through all sales channels. Such a prohibition can be lifted only on the basis of a written request from the client submitted in person at the bank, or using an enhanced electronic signature or enhanced client authentication.
When issuing a consumer loan, the bank or NBCO, after establishing through its information system that no restriction exists, must also verify its presence through the credit bureau's information system.
Upon receiving a request from a client who has imposed a restriction, the bank or NBCO must immediately notify them via mobile app or SMS.
When remotely concluding a consumer loan agreement or modifying an agreement, funds are disbursed after prior notification within the following timeframes: if the amount is up to twice the minimum wage - 2 hours after the conclusion or modification of the agreement; if larger - after 24 hours.
The consumer loan agreement must include a provision releasing the borrower from obligations under the issued (increased) loan in case of violation of this requirement.