Biznes Fakty
UOKiK checks how banks examine creditworthiness
The Office of Competition and Consumer Protection is currently scrutinizing the criteria used to assess the creditworthiness of consumers and how these criteria affect loan terms, as stated in a press release. – This mechanism may inherently be anti-competitive, as it deters or even penalizes informed consumers seeking the best offers, while enabling businesses to share information regarding a consumer’s inquiries to other lenders within a specific timeframe – commented Tomasz Chróstny, the president of the Office of Competition and Consumer Protection.
– We have been evaluating the rules and criteria for determining creditworthiness for several months due to concerns that the BIK scoring model might impede competition among banks – stated Tomasz Chróstny, president of the Office of Competition and Consumer Protection, as quoted in the press release.
He further noted, „a rational consumer aiming to secure the most advantageous conditions, for instance, for a mortgage loan, typically submits credit inquiries to multiple banks”. – However, often the consumer is unaware that each subsequent inquiry could diminish his/her credit score within the BIK (Credit Information Bureau – ed.), regardless of whether a credit decision has already been made by any of the banks – he elaborated.
X.COM
„The mechanism may already be anti-competitive in itself”
The Office of Competition and Consumer Protection explained that banks and other lenders evaluate the creditworthiness of each consumer requesting a loan using, among other factors, the BIK scoring system. The creditworthiness assessment within the BIK framework relies not only on the repayment history of loans and credits, current debts, types and numbers of liabilities but also on the frequency and quantity of credit inquiries.
This indicates that credit inquiries alone can substantially influence a consumer’s creditworthiness evaluation, irrespective of whether they have received a loan decision. Simultaneously, consumers lack clear information about how long it takes for previous inquiries to cease affecting their credit score.
– Such a mechanism may be anti-competitive in nature, as it deters or even penalizes savvy consumers searching for the best offers, while allowing businesses to share information regarding a consumer’s inquiries to other lenders during a certain timeframe – stated the president of the Office of Competition and Consumer Protection.
„Such action (…) is difficult to explain”
– The mechanisms we are investigating can persist for years and have very tangible effects – Chróstny remarked. He provided an example of a consumer who lodged a complaint with the Office of Competition and Consumer Protection, explaining that he aimed to explore consolidation loan options across various banks. – As a result of multiple inquiries to the Credit Information Bureau by different banks, his credit score significantly dropped within just a month. Each additional inquiry led to a further decline in his score, even though the consumer had not been denied a loan by any bank and his credit history showed no payment defaults. Such actions, when evaluating creditworthiness, are challenging to rationalize and may serve purposes beyond merely assessing the consumer’s financial situation – he added.
The Office of Competition and Consumer Protection clarified that the ongoing investigation pertains to the case in general, not against specific entities. Should the suspicions be validated, the President of the Office of Competition and Consumer Protection may initiate antitrust proceedings, which could result in penalties of up to 10 percent of turnover for anti-competitive practices.
