UTJ MKs Propose Law to Delete Credit Data From Coronavirus Period

The Knesset Committee for Legislation has approved a draft regulation proposed by the Chairman of the Finance Committee, MK Rabbi Moshe Gafni (UTJ), together with the deputy Transportation Minister, Rabbi Uri Maklev (UTJ), according to which all credit card data from the coronavirus crisis period will be deleted from company and bank records.

Rabbi Gafni stated, “This is a law of social importance of the first order, ensuring that people who found themselves in financial straits due to the coronavirus crisis will not be marked as having a bad credit rating for the future.”

Due to the coronavirus, many people’s livelihoods were affected, due to the closure of businesses, layoffs, or isolation. As a result, many people are unable to meet their obligations, repay loans, and meet their expenses during this difficult time.

In addition, under the Bank of Israel directive, banks have frozen their mortgage payments. As a result, borrowers who do not pay their mortgage actually fear that their credit rating will be impaired, and that impairing their credit rating may make it difficult for them to return to normal functioning.

The new regulation will have its preliminary vote in the Knesset plenum next week.