What is a BKR code?

The Credit Registration Office (BKR) in Tiel registers all loans and payment arrears in the Netherlands. This data is intended to prevent overextension of credit, but a negative code can have major consequences. Mortgage lenders, banks and even telecom providers use this information to determine whether someone is reliable as a payer.

What is the difference between a BKR code and a BKR registration?

Many people confuse the terms BKR registration and BKR coding, but there is indeed a difference.

• BKR registration is the general fact that your loan, credit, or revolving credit is recorded with the Bureau Krediet Registratie in Tiel is recorded. This always happens when you take out a loan of more than €250 that lasts longer than one month. You automatically receive a registration, even if you pay on time.
• BKR coding only comes into play when there is an issue with that loan, for example a late payment or a special circumstance. The coding is an addition to your registration that indicates exactly what is going on, such as arrears (A), recovery (H), or a special situation like SR or RH.

In short: the registration is essentially the note that you have a loan; the coding says something about its status. Mortgage and credit providers look at both elements to assess your creditworthiness.

The meaning of the different BKR codes

The basics: A and H codes

• A (Arrears code): a payment is in arrears. This is the base code and is always added once a payment is more than 120 days overdue. Reporting such an arrear is officially called an ‘Arrears notification’ and is visible as an ‘A’ next to the relevant credit or mortgage.
• H (Recovery code): you have fully cleared the arrears. However, the registration remains visible for another five years, unless there are grounds for removal. The ‘H’ stands for Recovery and is placed on the current credit when the arrears have been cleared. Note: if you terminate the credit after clearing the arrears, instead of an H you will only see an end date for the credit. The data about the terminated credit will automatically be removed five years after this end date from the BKR.

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

In addition to the general A and H codes, the bank or lender can add an extra digit that indicates the severity of the situation:

• A1: a payment arrangement has been made, but it has not yet been fully complied with. In many cases, an arrangement was agreed after the arrears arose.
• A2: the claim has been called in or there is a collection process; the (remaining) claim has been declared due and payable.
• A3: the debt has been written off in whole or in part (waiver or settlement). . This happens, for example, when at least € 250 is remitted. Only if the write-off takes place due to full and final settlement is an end date listed immediately.
• A4: the borrower is untraceable or no longer responds to reminders; ; it means that the lender could no longer get in touch with you.
  

  Additional codes and particulars

  In addition to the standard and numeric codes, there are additional special codes:

  • A5: this code means that a preventive payment arrangement has been made. This is always temporary. Once the arrangement is completed, the coding is completely removed.
  • RN (residual debt NHG): this is placed when the National Mortgage Guarantee (NHG) has written off an amount from the mortgage due to a residual debt.

  For most special codes there is no waiting period: they are assigned immediately once the relevant situation occurs. You are not required to receive advance notice about such a code.

The special registrations SR and RH

• SR (Debt restructuring arrangement): you have been admitted to a debt restructuring process (amicable or statutory, for example WSNP). The registration remains until five years after completion of the process.
• RH (Recovery after restructuring): you have successfully completed the process. The registration remains visible, but shows that the situation has been restored.

How long does a BKR code remain?

All negative codes remain in principle five years visible after the loan has ended or the arrears have been resolved. This period is laid down in the rules of the BKR, but may according to the GDPR and recent case law are not applied automatically. The bank must always weigh its own interest against your right to have your creditworthiness restored.

When is a code registered?

A code does not simply appear under your name. Before a payment arrears is officially reported to the BKR is reported, the bank is obliged to warn you in advance. You will therefore first receive notice that if you do not pay on time, the registration will follow. The exact timing of registration depends on the type of credit, but generally the period between the arising of the payment arrears and the actual BKR-registration of two to four months.

Special codes: direct registration

In addition to the standard A and H codes, the BKR also has six special codes that indicate the severity and stage of the arrears. Note: there is no mandatory waiting period for these special codes, and the bank does not always have to inform you in advance. These codes can therefore quickly become visible on your BKR-overview.

So you know where you stand and can take timely action before a registration becomes final.

When is a code unjustified?

A code is unjustified if it is not (or no longer) proportionate or has not been recorded correctly. Examples:

• The arrears were resolved in time, but the H code is missing;
• The arrears arose due to circumstances beyond your control (illness, divorce, loss of income);
• The registration is not up to date or not properly substantiated;
• The bank did not hear you or did not carry out a balancing of interests;
• The registration is contrary to the GDPR principles of proportionality and data minimization.

What can you do about an unjustified code?

1. Request your data from the BKR via bkr.nl.
2. Check whether the code is correct.Submit a request for correction or deletion
3. Then you can enforce removal or a shortening of the term through court proceedings.Common mistakes in BKR registrations
   In practice, we see that lenders regularly make mistakes, such as:
   placing an A-code without warning; banks are in fact required to inform you in advance that a payment default will be reported to the BKR if you do not pay on time. Without such a clear warning, this registration may not simply take place;
4. not adding an H-code after recovery;maintaining a registration while the debt has long since been repaid;

combining an A-code with an unjustified

EVR registration

• in fraud investigations.Case law on BKR codes
  Judges and the KiFiD increasingly emphasize that a code should not be automatic. In recent cases, a registration was removed because the person concerned had since become financially stable again, and the bank’s interest did not outweigh the harm the registration caused.
  BKR codes and mortgage applications
  A negative registration – especially A2 or A3 – can block your mortgage application. Even if you have repaid the debt, the registration can continue to have effect for years. We help clients in such cases invoke the proportionality test: if the financial situation has recovered, the registration must be removed or shortened.

• Whether you actually qualify for a mortgage depends largely on the type 
• BKR
• -code. With an A3 or A4 code, obtaining a mortgage is generally excluded. Other codes, such as an A or A2 code, can complicate the process, but do not necessarily rule out a mortgage. In these cases, it is wise to seek professional advice in good time, so that you know where you stand and which steps you can take to improve your chances.Note: even after your financial situation has recovered, a code can still affect your options. Therefore, it’s important not only to check the BKR

-overview carefully, but also to understand the impact of the different codes on your future plans.

What can Arslan Advocaten do for you?

We check the accuracy of your code;

We assess whether the registration complies with the GDPR and the principle of proportionality;We draft the deletion request for you;We initiate, if necessary, proceedings with KiFiD or the civil court;We try to recover the costs from the lender if the registration proves to be unjustified.

Frequently asked questions about BKR codesWhat does an A1 code mean?
An A1 code means that a payment arrangement has been made, but that it has not yet been fully complied with. The registration remains until the debt has been repaid and an H code can be added.

Can I have an A2 code removed?

• Yes, that is possible. An A2 code (call-in) is serious, but can be removed if the registration is no longer necessary or was not recorded correctly. We can help you with a legally substantiated request.
• What is the difference between SR and RH?
• SR indicates that you are in a debt restructuring process; RH indicates that you have successfully completed it. After RH, the registration remains for up to a further five years, but can sometimes be removed earlier.
• What does legal assistance cost?
• In many cases, we recover the costs from the credit provider. You then pay nothing for our assistance.

Questions or need advice right away?

Feel free to contact

Arslan Attorneys

. We help you quickly and expertly remove or correct your BKR registration.

Ja, dat kan. Een A2-code (opeising) is zwaar, maar kan worden verwijderd als de registratie niet meer noodzakelijk is of niet correct is vastgelegd. Wij helpen u met een juridisch onderbouwd verzoek.

Wat is het verschil tussen SR en RH?

SR geeft aan dat u in een saneringstraject zit; RH dat u dit succesvol hebt afgerond. Na RH blijft de registratie nog maximaal vijf jaar staan, maar kan soms eerder worden verwijderd.

Wat kost juridische hulp?

In veel gevallen verhalen wij de kosten op de kredietverstrekker. U betaalt dan niets voor onze bijstand.

Vragen of direct advies nodig? Neem gerust contact op met Arslan Advocaten. Wij helpen u snel en deskundig bij het verwijderen of corrigeren van uw BKR-registratie.