MP: No fast solutions from Government on positive credit register

The positive credit register has caused problems for sole traders.

Centre Party MP Vesa Kallio writes about the positive credit register in an article in the newspaper Suomenmaa. Kallio and his fellow MPs Anne Kalmari and Mika Riipi submitted a written question last year about the problems caused by the positive credit register.

Kallio says there are no fast solutions to the problems in the offing. In his Suomenmaa article, he quotes the response from Justice Minister Leena Meri to the written question in December.

“The Ministry of Justice is planning an ex-post evaluation of the positive credit register, which is intended to be conducted four years after the launch of the credit register for consumer loans. In particular, the purpose is to evaluate the functionality and impacts of the Act. When this ex-post evaluation is conducted, it will also be possible to evaluate issues such as the register’s needs for improvement,” minister Meri wrote in her answer.

In the event that it is considered necessary to develop the data content of the register by including data about business income in the register, the matter would require substantial evaluation of available sources, possibly including amendments to the Income Data System Act, as well as additional funding. When the ex-post evaluation is conducted, it will also be possible to evaluate the sufficiency of the methods available to the supervisory authorities,” the minister’s answer continued.

Problems for sole traders

The positive credit register, launched in April 2024, has brought with it a problem which can at worst prevent a soul trader from making personal purchases. The credit register does not record sole trader’s incomes, which could cause problems for many people who want to buy products on hire-purchase. The data are taken from the income register, which does not provide data about capital income or business income.

A lender is obliged to verify a credit applicant’s creditworthiness. To do this, the lender applies to the Positive Credit Register for a credit data file, which provides current information about the applicant’s credits filed with the register, as well as the applicant’s income.

“The positive credit register is one of the factors which help evaluate a credit applicant’s creditworthiness, and at least in some situations applicants have the opportunity to provide further information about their solvency to the lender. Unfortunately that is not the case in all situations, which is why the positive credit register can cause erroneous credit decisions. The problem has been recognised, but solving it has proved difficult. However, this should not prevent the problem from being solved as quickly as possible,” Petri Malinen, an economist at Suomen Yrittäjät, the Finnish SME association, said previously.

Suomen Yrittäjät pointed out the shortcomings in the legislation when it was being prepared in 2022.

Positive Credit Register

The Positive Credit Register gathers information on credit issued to individuals, and on their income. The Register aims to

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• prevent households from taking on too much debt
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• improve lenders’ ability to test loan applicants’ creditworthiness
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• help individuals to manage their finances better
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• provide a source of reliable information on the credit market
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• provide an easier method of follow-up and control of the credit market.

The Positive Credit Register was launched on 1 Apr. 2024. The Register’s online service for private individuals were launched on the same date. The Act on the register entered into force on 1 Aug. 2022.

The Register is being rolled out in two stages: In the first stage, information on consumer credit and other comparable lending will be included in the register. Lenders have been able to report information since 1 Feb. 2024. In the second stage (from 1 Dec. 2025), lenders start reporting loans granted to consumers other than private individuals. Information included in the second stage can be retrieved from the register from 1 Apr. 2026.

The public authorities listed by the Act can use data from the Positive Credit Register to carry out their legal duties. The Financial Supervision Authority, the Finnish Competition and Consumer Authority, the Financial Stability Authority, the Bank of Finland and Statistics Finland have access to the Positive Credit Register Data.

Source: Tax Administration

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