The file of the Central Individual Credit Register has recorded information relating to all consumer credits and mortgage loans contracted by natural persons for private purposes as well as any payment defaults resulting from these loans. This registration aims to strengthen the means of preventing the excessive indebtedness of private individuals.
Information on individual loan contracts as well the borrowers’ identity are notified to the National Bank by lenders. These are not just banks, firms specialising in consumer credit or mortgage loans and credit card issuers, but also insurance companies that grant mortgages and sellers that offer instalment loans or hire purchase.
All lenders must consult the Central Credit Register’s files by law before granting a loan to a private individual. In this way, they can obtain full information on the would-be borrower’s credit liabilities and commitments. This enables them to make a better credit risk assessment and, if necessary, avoid granting the "one loan too many" that could tip the borrower into overindebtedness.
At the end of the loan term, or in the event of a payment default, once the regulated data retention period is over, the information is automatically erased from the Central Credit Register’s records.
The file of non-regulated registrations (ENR) also registers the payment arrears on overdue debts relating to credit agreements and financial undertakings concluded by natural persons for private purposes, which are not listed in the file of the Central Individual Credit Register; this registration also aims to strengthen the means of preventing the excessive indebtedness of private individuals.