What are credit information systems (sic) for? Whenever we ask for a personal loan, a mortgage, a credit card or a credit line what happens? Our data where are they sent?
Credit information systems: credit databases
The credit institution or the financial intermediary, when receiving a credit request from a customer, sends the information to a database. These structures (SIC) can be of a private nature (CTC, EXPERIAN, CRIF) or managed directly by the ZL Bank . The credit information systems represent a huge database where all the data related to the credit operations are merged.
Contrary to what one might think they do not contain only negative data (installments paid late or large delinquencies) but are updated with all loan requests . 95% relate to positive information, therefore to loans regularly paid. Registrations at the crif or at other databases take place for all loans.
Clearly if a query of the databases elaborates that we are paying a loan with delays or that the total installment is very high, it is unlikely that our request can be processed positively.
This system of computer data exchange is born in the interest of the operators of the sector to try to limit insolvency risks and make a “healthy” credit system grow.
But it is also born to protect consumers to avoid the risk of over-indebtedness which could cause many problems for families who would no longer be able to support loan payments.
Storage and cancellation times
The financial institution requires the private individual or the company that applies for a loan to consent to the processing of personal data, in turn providing all the information relating to the way in which the data will be processed within the credit information systems , how long they will be kept, who can access them.
The legislation provides for the maximum duration of data retention in the database of credit information systems :
- 6 months for the loan request which is reduced to one month in case of refusal or renunciation of the same;
- 12 months in case of delayed payment of two consecutive installments. The one-year term begins to run from the day the payment was settled;
- 24 months in case of delay in the payment of more than two installments. The two-year term begins to run from the day the payments were regularized;
- 36 months in the event of failure to pay some installments. The three-year term begins to run from the expiry of the contract or from the last update;
- positive reports, ie those that certify full compliance with payment deadlines, remain visible for 3 months starting from the termination of the relationship, the expiry of the contact or the first subsequent update to these dates.
On January 1, 2015, the code of ethics and good conduct for credit information systems came into effect, which provides clear guidelines to protect the subjects registered.