A BKR registration after a payment arrangement is an unpleasant surprise for many consumers. You have made an arrangement with your creditor to repay your arrears in instalments and you keep to your agreements. Yet you discover that a negative coding has been placed in the
BKR-register that prevents you from applying for new financial products. In this article you will read what a BKR registration after a payment arrangement precisely entails, what rights you have and how you can challenge an incorrect or disproportionate registration.
What happens to your BKR registration when you make a payment arrangement?
When you make a payment arrangement with your creditor, this is reported to the BKR. In most cases the creditor places a bijzonderheidscode 1 on your registration. This code indicates that a payment arrangement has been made that deviates from the original credit terms. In addition, an arrears coding may already have been placed before the payment arrangement was agreed. The result is that your BKR registration contains one or more negative codings.
The fact that you make a payment arrangement is in itself a responsible step. You acknowledge the debt and actively work on a solution. Nevertheless, this positive attitude is not always rewarded as such in the BKR system. The registration of the payment arrangement can remain visible for years and limit your financial options, even after you have fully completed the arrangement.
When is the coding placed?
The creditor registers the payment arrangement with the BKR as soon as it is concluded. In some cases an arrears coding was already placed before the payment arrangement was agreed. The bijzonderheidscode for the payment arrangement is then added on top of the existing arrears notice. This can result in your registration containing multiple negative codings, which increases the impact on your creditworthiness.
It is important to check whether the creditor has placed the correct coding and whether the registered data correspond to the actual situation. Errors in the registration do occur and can lead to unjust negative consequences. Therefore always check your BKR overview after you have entered into a payment arrangement.
Consequences of a BKR registration after a payment arrangement
The consequences of a BKR registration after a payment arrangement are comparable to those of other negative BKR codings. Creditors consult the BKR before they make a decision about a new credit application. A negative coding can result in your application for a loan, mortgage or credit card being rejected.
Moreover, the registration can have consequences for refinancing existing credits to more favorable terms. If you want to refinance your mortgage to a lower rate but a negative BKR coding is registered in your name, the new mortgage provider may reject your application. This can disadvantage you financially because you are stuck with unfavorable terms.
Your rights with a BKR registration after a payment arrangement As a consumer you have rights that protect you against incorrect or disproportionate registrations. Knowing and exercising these rights is essential to protect your financial position.
Right to correct registration
The creditor is obliged to register correct and up-to-date data with the BKR. If the registered data do not correspond to reality, you have a right to rectification. This can be the case if the amount of the arrears is incorrectly registered, if the payment arrangement has been wrongly marked as a payment arrears, or if the registration has not been updated after the arrangement was completed.
Right to a herstelcodering
As soon as you have fully completed the payment arrangement and the arrears have been settled, you are entitled to a herstelcodering. The creditor must place this coding within four weeks. If the creditor fails to do so, you can enforce this through an objection procedure with the creditor, Kifid or the court.
Right to proportional registration
The registration must be proportional in relation to the circumstances. A registration that hinders you for years because of a minor and by now fully resolved arrears can be considered disproportionate. The court will weigh the interest of the credit registration system against your individual interest when assessing this.
When is a BKR registration after a payment arrangement unjust?
There are situations in which the registration after a payment arrangement can be regarded as unjust. If the creditor did not send you a prior notice before the arrears notice was placed, the registration is procedurally incorrect. If the payment arrangement was initiated by the creditor without there being an actual payment arrears, the coding can be substantively incorrect. And if the registration has disproportionate consequences for you, an appeal to disproportionality can be successful.
In addition, there can be an unjust registration if the underlying claim is disputed. If you believe that you do not owe the amount to which the payment arrangement relates, or not fully, this can be a ground to contest the registration. In that case it is advisable to dispute the claim and the registration simultaneously.
Challenging the registration Challenging a BKR registration after a payment arrangement follows the same steps as challenging other BKR registrations. You start with an objection to the creditor, followed by a complaint to Kifid if the objection is rejected and, if Kifid also does not provide a solution, possibly a procedure before the court.
When challenging the registration it is important to make clear what your grounds are. Is it a factual inaccuracy, a procedural error or a disproportionate registration? Each type of ground requires a different substantiation and a different type of evidence. A lawyer can help you identify the right grounds and effectively substantiate your objection.
The influence of the cause of the payment problems
The cause of the payment problems can play a role in the assessment of whether the registration is proportional. If the payment problems arose due to force majeure, such as sudden dismissal, serious illness or a divorce, this may prompt the court to consider the registration disproportionate. In that case the court looks not only at the fact that an arrears occurred, but also at the circumstances under which this happened and at the efforts you made to resolve the situation.
The fact that you have entered into a payment arrangement and have fully complied with it can work in your favor. It shows that you have taken responsibility and that you are able to meet your financial obligations. The court can take this into account when assessing whether the continued registration is still justified.
The procedure for challenging the registration Challenging a BKR registration after a payment arrangement follows the same steps as challenging other BKR registrations. You start with an objection to the creditor, followed by a complaint to Kifid if the objection is rejected and, if Kifid also does not provide a solution, possibly a procedure before the court.
When challenging the registration it is important to make clear what your grounds are. Is it a factual inaccuracy, a procedural error or a disproportionate registration? Each type of ground requires a different substantiation and a different type of evidence. A lawyer can help you identify the right grounds and effectively substantiate your objection. The effect of debt counseling on BKR registrations If your payment arrangement was made as part of debt counseling, additional rules may apply. Municipal debt counseling and statutory debt rescheduling schemes have their own protocols for registration with the BKR. If you have successfully completed a debt counseling trajectory, this can be a strong argument for removing or shortening your BKR registration. The court generally regards successful completion of a debt counseling trajectory as a positive element.
Moreover, the fact that you sought professional help to resolve your financial problems can strengthen your position in a proportionality assessment. It shows that you took responsibility and that there is a structural improvement in your financial situation. This can convince the court that the continued registration is no longer necessary.
Tips for preventing a BKR registration in case of payment problems If you notice that you are having difficulty meeting your monthly repayments, it is wise to proactively contact your creditor. By starting the conversation early you increase the chance that an arrangement can be made without a negative
BKR coding being placed immediately. Some creditors are willing to make payment arrangements without reporting this to the BKR, provided you raise the alarm in time. So do not wait until the arrears grow, but take the initiative as soon as you foresee financial problems.
Subsidised legal aid
Challenging a BKR registration after a payment arrangement may require specialist legal knowledge. If your income is limited, you may be able to apply for subsidised legal aid via the Raad voor Rechtsbijstand. With a toevoeging you pay only a personal contribution and the remaining lawyer’s fees are covered by the state. This makes professional legal assistance accessible to you as well.
Have your registration reviewed A BKR registration after a payment arrangement does not have to be final. With the right approach and legal support you can have the registration reviewed and, where possible, removed or shortened. It is important not to wait too long, because the sooner you take action, the sooner you can restore your financial options.
Do you have a BKR registration after a payment arrangement and would you like to know what your options are? Contact us for a free assessment. Our lawyers specialize in BKR matters and are happy to help you improve your situation.
Also read
- Incorrect BKR registration: step-by-step plan for removal
- BKR herstelcodering
- BKR registration and mortgage
- Insurance law lawyer
