Why is this important
- This will strengthen consumer protection: people will be aware of the main risks before taking out a loan;
- will increase the transparency of the financial services market and pressure creditors to be honest and responsible in advertising;
- может привести к снижению случаев, когда потребители попадают в долговые ловушки из‑за неполной информации;
What happened
- Bahodir Mirzayev from the Central Bank’s Consumer Rights Protection Service reported that the draft law will be submitted by the end of 2025.
- It is proposed to amend the Law “On Advertising” to make it mandatory to warn about risks associated with future expenses and financial difficulties;
- For example: late payments can worsen credit history and affect future loan terms;
- work on the draft law is being carried out jointly with the Committee on Competition and the Ministry of Justice;
- audio and television advertisements may fall under warnings.
Context
Currently, advertising legislation in Uzbekistan already includes articles regulating financial services, but there is no clear standard for mandatory risk disclosure in loan advertising. This is not the only initiative: previously, checklists that banks must provide to clients before signing a loan agreement, describing risks, consequences of delays, and others, were discussed.
At the same time, the microcredit and retail lending market is expanding, which increases the potential risk to the population due to lack of information.
