Not in the same way it is in the US and in Finland, I don't think it is used at all - at least on the visible layer. They can check debt though of course.
They still get the loan, they just get a worse interest rate which just digs their hole even bigger.
Another scam someone was able to set up to extract more and remove more opportunity from the masses.
Yeah, it is pretty horrible and shameful. Just another way they exert control.