Ministry of Justice surveys the need for a positive credit register 28 Sep 2017 17:00 The Ministry of Justice will determine this autumn if Finland will establish a positive credit register. The key players in the financial sector, including Finance Finland (FFI), discussed the topic with the Minister of Justice in September. The financial sector is mainly supportive of the positive credit register, which could help prevent over-indebtedness. “Based on this discussion, the Ministry of Justice can make a provisional decision about how to proceed”, summarises Minister of Justice Antti Häkkänen on 19 September.Lea Mäntyniemi, Director of Legislation at FFI, considers the September discussion important. “We are largely unanimous about the need to investigate whether a positive credit register should be instated. If the register is set up, it must be a modern, secure and cost-efficient system, used only for its specific intended purpose”, Mäntyniemi states.FFI has also emphasised that the register must contain comprehensive and adequately up-to-date data. In addition to bank loans, the register should also include loans granted by microcredit companies, foreign creditors and finance companies that operate independently of bank groups.Finns are typically diligent in paying back their bank loans, but payment defaults are increasingly becoming an issue. Most bad credit histories are caused by payment defaults from household consumer credits and fast cash loans, usually taken due to unexpected life situations or severe social exclusion. By predicting risks, the financial sector wants to do its part in preventing people from being drawn into a vicious circle of debt.