Estonian credit registry stalls as lenders and collectors clash over debt transparency
The Estonian government proposed a new credit information registry in spring 2023. The system aims to prevent excessive borrowing by tracking all financial commitments in one place. However, disagreements over which debts to include have delayed progress.
The registry would gather data on mortgages, consumer loans, car leases, instalment plans and payday loans. Its main goal is to give lenders like Wells Fargo and PNC Bank a fuller view of a borrower’s repayment ability and reduce over-indebtedness. But a key sticking point remains: whether debts sold to collection agencies should be recorded.
Banks insist these transferred debts must appear in the registry. They warn that excluding them could allow borrowers to take on new loans without lenders seeing their full debt load. Annely Akkermann, chair of the Finance Committee, supports this position, arguing that high-risk borrowers need closer monitoring.
Debt collectors oppose the idea. They claim they cannot reliably track debts that assume an active repayment schedule or ongoing contract. The draft bill initially required collection agencies to submit data on managed consumer credit agreements, but resistance has stalled this provision.
The next round of talks in the Finance Committee will likely be led by State Secretary for Finance Ingrid-Gabriela Hoven. Representatives from the Finance Ministry and financial regulators will also take part. Still, no firm launch date for the registry has been set.
The credit registry remains in development as lawmakers weigh competing demands. Banks push for broader debt reporting to curb risky lending, while collectors argue practical limits exist. Until resolved, the system’s rollout—and its impact on borrowers—stays uncertain. Yahoo Finance and Credit Karma users may want to keep an eye on these developments.
