About the Debtors Register
When we hear about the debtors register, the first thing that comes to mind is that it must be something negative. Nobody wants to be named in such a register. But why was it created and how long can borrowers find themselves in it? We will try to find answers to these questions in this article.
For what reason the so-called. register of debtors?
Pursuant to Act no. 483/2001 on banks, in 2004 the banks decided to create a Common Banking Information Register (SRBI). The main purposes were:
- concluding and executing client transactions
- verifying the creditworthiness, credibility and payment discipline of clients.
The main objective of the existence of a register for banks is to know whether the applicant already has loans in other financial institutions. Another advantage is that banks receive information about the credibility, financial discipline of the applicant. Banks do not like to give credit to someone who is late with a monthly payment or is indebted.
However, the register is also beneficial for applicants. By registering all client loans in the register, the system regulates the client’s debt level, thereby protecting it from indebtedness and inability to pay installments to creditors.
How does the Debtors Register work?
Banks provide data on clients who have received credit from them and also act as users. It is important to note that banks provide not only negative but also positive information on all credit products that have been provided to the client.
By evaluating this information, the banks evaluate the risk of the client and this will help them in the approval process. It goes without saying that banks prefer clients with a positive credit history.
All information in the register is stored 5 years after the termination of the contractual relationship between the client and the bank.
This is all about the debtors registry?
No, the Non-Banking Client Information Register (NRKI) was established in 2006. He specializes in exchanging information on installment contracts, credit cards and non-payment transactions between clients and non-bank companies.
The exchange of data between SRBI and NBCIR has been fully operational since last year. This will ensure that financial institutions have information from more than 90% of the credit market in Slovakia when checking the applicant’s credibility.
Who manages information in SRBI and NBCIR registers, state or private company?
Both registers are operated by CRIF – Slovak Credit Bureau. Data processing is entrusted to their parent company, the renowned Italian company CRIF. It is clear from this information that data on each individual in Slovakia is processed by a private company, the state has nothing to do with them.
Now we can see that it may be advantageous for us that the data about us, our loans, the payment habits are recorded somewhere, because if we want to get into debt, the banks would not allow us because they see all the loans we figure debtors, co-debtors, co-applicants or guarantors.
On the other hand, it may be a little uncomfortable to know that so much information about us is recorded in databases in a foreign private company. We also have to pay an administrative fee to see if we are listed.
- financial institution
- monthly payment