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State should operate list of good borrowers

Hungary's data protection ombudsman András Jóri on Tuesday called for the state, not lenders, to operate a database of retail borrowers with good credit history.

Although the system is nominally voluntary, banks have far more power than retail lenders in the matter, which is not regulated by the state, Jóri argued.

"The systems operated by financial companies appear to be based on the voluntary consent of borrowers. But this voluntary consent is made questionable by the lack of a level economic playing field between the two parties; thus, in reality, a restriction of citizens constitutions rights will result," Jóri said. "A state data manager authorized by law for the task could ensure with greater certainty the management and operation of a database that affects several hundred thousand retail loan transactions," he added.

Jóri called on Parliament to intervene in the matter urgently.

The list of borrowers with good credit history is a new development. Earlier, lenders used only a list of borrowers with bad credit history. (MTI-ECONEWS)