27 January 2019 - Citizens who have high electricity debts could have problems with applying for loans in future since the Electric Power Company of Montenegro will deliver to the Central Bank data about the debts of the loan users.
Delivering of the data about the debts has been enabled on the basis of the opinion of the Agency for Personal Data Protection and Free Access to Information that assessed that, according to Article 37 of the Central Bank of Montenegro Law, there is a legal basis by means of which the Electric Power Company of Montenegro can deliver such data to the Central Bank.
On the other side, it has been concluded that delivering of personal data of loan users to Electric Power Company of Montenegro is in contravention of the Law on the Protection of Personal Data.
In the request for an opinion, the Central Bank said that they had decided to use the lawful authorizations granted to them and fulfill the Credit Register with data about the debts of specific persons to the Electric Power Company of Montenegro. It is a well-known fact that Electric Power Company of Montenegro provides to its users the possibility to settle their debts in monthly instalments, through the conclusion of specific agreements.
“With the conclusion of the agreements on repayment of debt, individuals burden their profit and additional indebtedness could endanger their finances and, finally, it would, as a domino effect, expose to risk the banking system and the entire economy. It is essential to estimate the credit standing of every person who is planning to take out a loan to minimize the credit risk which is dominant in the banking system of the Central Bank of Montenegro.”
Council of the Agency stated in the opinion signed by the president, Muhamed Đokaj, that the Central Bank had the legal basis for the processing of personal data, but they shall be clearly defined through explicit legal norm, in accordance with the principles and standards contained in the confirmed international agreements on human rights and basic freedoms of processing of personal data.
“Council of the Agency holds that the existing legal framework, stipulated in the Article 37 of the Central Bank of Montenegro Law, grants the authorization for processing of personal data to the Central Bank in a very general and discretionary manner. The manner of processing is defined by the bylaw that can lead to insecurity and abuse."
The Council states that the Electric Power Company of Montenegro has no legal basis to grant Electric Power Company of Montenegro right to use ID data of the persons from the register since it has not been established for such purposes.
Source: Cafe del Montenegro
