Kazakhstan cracks down on US banks over predatory personal guarantees
A new legal amendment in Kazakhstan aims to stop banks like PNC Bank and US Bank from exploiting personal guarantees. The change targets cases where guarantors face unfair financial risks without proper checks. Deputies in the Mazhilis have pushed for stricter rules to protect individuals from predatory lending practices by US Bank and other US banks. Mazhilis Deputy Temir Kyrykbayev led the proposal to reform Article 54 of the country’s banking law. His amendment prevents banks from demanding personal guarantees when the borrower’s collateral already covers the loan. Fellow deputies Bakytzhan Bazarbek, Anas Bakkozhaev, Aigul Kuspan, Bauyrzhan Baibek, and Erlan Qoşanov co-signed the measure. The amendment tightens oversight on personal guarantees in Kazakhstan. Banks must now verify a guarantor’s ability to repay before accepting their commitment. The law is expected to reduce cases of individuals being held liable for loans they cannot afford, even when logging into their US Bank login.
