What is a BKR coding?

The Bureau of Credit Registration (BKR) in Tiel, Netherlands keeps track of all loans and payment arrears in the country. The information is intended to prevent over-crediting, but a negative coding can carry significant consequences. Mortgage lenders, banks and even telecom providers use this information to determine if someone is trustworthy when it comes to making payments.

The meaning of different BKR codes

The basics: A and H codings

• A (Arrears coding): A payment arrears has arisen. This is the basic code and is always added when a payment is more than 120 days overdue.
• H (Recovery coding): You’ve fully repaid the arrears. However, the registration remains visible for another five years unless there are grounds for removal.

The special A codings (A1, A2, A3 and A4)

In addition to the general A and H codes, the bank or lender can add an extra number that provides some insight on the severity of the situation:

• A1: A payment arrangement has been made, but not yet fully honored;
• A2: The claim has been made payable on demand or a collection process is taking place;
• A3: The debt has been written off, either entirely or partially (discharge or buy off);
• A4: The lender cannot locate the borrower or there is no response to reminders.

The special registrations SR and RH

• SR (Debt Restructuring Scheme): You have been accepted into a debt restructuring program. The registration remains for up to five years after the program has been completed.
• RH (Recovery after Restructuring): You have successfully completed the program. The registration remains visible, but it shows that the situation has been resolved.

How long does a BKR coding last?

All negative codings generally remain visible for five years after the loan has been settled or the arrears have been compensated. This term is laid out in the BKR rules, but according to the General Data Protection Regulation (GDPR) and recent jurisprudence, it should not be automatically applied. The bank always needs to balance its interest against the client’s right to recovery of creditworthiness.

When is a coding unjust?

A coding is unjust if it is no longer proportional or if it hasn’t been recorded correctly. For example:

• The arrears have been compensated in time, but the H coding is missing;
• The arrears have been caused by situations beyond your control (illness, divorce, loss of income);
• The registration isn’t up to date or well-motivated;
• The bank didn’t hear your side of the story or didn’t balance interests;
• The registration contravenes the GDPR principles of proportionality and data minimization.

What can you do in case of unjust coding?

1. Request your data from the BKR via bkr.nl. Check if the coding is accurate.
2. Submit a request for correction or removal to the lender who made the registration.
3. Was this rejected? Then seek legal help. Arslan Advocates can submit a well-grounded objection, referring to the GDPR and recent rulings of the Financial Services Complaints Institute (KiFiD).
4. Does the rejection persist? You can enforce removal or shortening of the term through a lawsuit.

Common mistakes with BKR notifications

In practice, we often see lenders make mistakes such as:

• posting an A coding without issuing any warning;
• not adding an H code after the recovery;
• maintaining a registration even when the debt has been paid off long ago;
• combining an A code with an unjust EVR registration in case of fraud investigations.

Jurisprudence concerning BKR codings

Judges and the KiFiD increasingly emphasize that a coding shouldn’t be automatic. In recent cases, a registration was removed as the individual was financially stable again and the bank’s interest did not outweigh the damage caused by the registration.

BKR codings and mortgage applications

A negative registration – especially A2 or A3 – can block your mortgage application. Even if you have settled the debt, the registration can continue to have an impact for years. In such cases, we help clients appeal to the test of proportionality: if the financial situation has been recovered, the registration should be removed or shortened.

What can Arslan Advocates do for you?

• We check the accuracy of your coding;
• We assess whether the registration meets the GDPR and the principle of proportionality;
• We compose the removal request for you;
• We start a lawsuit, if necessary, with the KiFiD or the civil court;
• If the registration turns out to be unjust, we’ll try to recuperate the cost from the lender.

Frequently Asked Questions about BKR codings

What does an A1 coding mean?

An A1 coding means that a payment arrangement has been made but hasn’t been fully honored. The registration remains until the debt is settled and an H code can be added.

Can I have an A2 coding removed?

Yes, you can. An A2 code (demand for payment) is major, but can be removed if the registration is no longer necessary or hasn’t been recorded accurately. We can assist you with a legally substantiated request.

What’s the difference between SR and RH?

SR indicates you’re in a debt restructuring program; RH states that you have successfully completed the program. After RH, the registration remains visible for up to another five years, but can sometimes be removed sooner.

What does legal help cost?

In many cases, we recover costs from the lender, meaning that our assistance won’t cost you anything.

Do you have questions or do you need advice immediately? Feel free to contact Arslan Advocates. We offer fast, professional help in removing or correcting your BKR registration.