An unjustified BKR registration can bring your financial life to a complete standstill. You want to take out a mortgage, apply for a loan or arrange a credit card, but you are being rejected everywhere because of a negative code at the Bureau Krediet Registratie. The frustrating thing is that this registration does not always have to be justified. Mistakes occur more often than you think and the consequences are enormous. In this article you will find a clear step-by-step plan to challenge and have an unjustified BKR registration removed.
What is the BKR and why are you registered? The Bureau Krediet Registratie in Tiel is a foundation that registers consumers’ credit data. Virtually all banks, credit providers and leasing companies in the Netherlands are affiliated with the BKR and are obliged to pass on certain data. The BKR registers not only the existence of a credit, but also whether payment problems have arisen. The purpose of the register is to prevent over-indebtedness and to enable credit providers to make responsible credit decisions.
A registration with the BKR is not negative in itself. Everyone who has a loan, mortgage or credit card is registered. Problems only arise when a negative code is placed, for example an arrears notification or a special code. Such a negative BKR code can remain visible for years and severely limit your ability to take out financial products.
When is a BKR registration unjustified?
A BKR registration can be unjustified for various reasons. It is important to assess whether your specific situation provides grounds for challenging the registration.
Administrative errors
The most obvious reason for an unjustified BKR registration is an administrative error. It may happen that the credit provider has recorded a payment arrears while you paid on time, or that a registration was not removed after the debt was fully repaid. Mix-ups with other persons with a similar name or date of birth also occur. In all these cases, the registration is factually incorrect and must be corrected.
Procedural errors
The credit provider must adhere to strict procedures before placing a negative code. For example, the credit provider must inform you in advance of a pending registration and give you the opportunity to clear the arrears. If the credit provider has not followed this procedure correctly, the registration may be unjustified on procedural grounds. Failure to send an advance notice is a common procedural error that provides grounds for challenging the registration.
Disproportionate registration
A registration can also be unjustified if it is disproportionate in relation to the circumstances. If, for example, you are hindered for years in your financial possibilities due to a short-lived payment arrears that has since been fully resolved, the court may rule that the registration must be removed because the consumer’s interest outweighs the interest of the credit registration system.
Dispute about the claim
If there is a dispute about the underlying claim, a BKR registration can also be unjustified. If you dispute the claim and legal proceedings are pending, or if the claim is time-barred, there may be grounds to challenge the registration. A registration based on a disputed or time-barred claim can be considered unlawful.
Step-by-step plan: this is how to challenge an unjustified BKR registration
Challenging an unjustified BKR registration requires a systematic approach. The following step-by-step plan helps you proceed in a structured manner.
Step 1: Request your BKR overview
The first step is to request your personal credit overview from the BKR. You can do this via the BKR website. The overview shows all credits registered in your name, including any negative codes. By carefully studying the overview, you can determine which registration is unjustified and on what grounds you wish to object.
Step 2: Collect evidence
Before you lodge an objection, it is important to collect all relevant evidence. Think of bank statements proving that you paid on time, correspondence with the credit provider, proof of repayment and any letters of complaint. The stronger your evidentiary position, the greater the chance that your objection will be upheld.
Step 3: File an objection with the credit provider
The BKR itself cannot modify or remove your registration. The credit provider is responsible for the accuracy of the registered data. You must therefore address your objection to the credit provider who placed the registration. Write a substantiated letter explaining why the registration is unjustified and enclose your evidence. Request that the credit provider correct or remove the registration.
Step 4: Submit a complaint to Kifid
If the credit provider rejects your objection or does not respond, you can file a complaint with the
Klachteninstituut Financiële Dienstverlening. Kifid handles disputes between consumers and financial service providers and can issue a binding decision. Kifid has in numerous decisions ruled on unjustified BKR registrations and thus offers an effective route for removal.
Step 5: Start proceedings before the court
If Kifid offers no solution or if you prefer a judicial ruling, you can initiate preliminary relief proceedings or proceedings on the merits before the court. The judge assesses whether the registration is lawful and proportionate and can order the credit provider to remove the registration. Case law regularly includes decisions in which judges have ruled that
BKR registrations had to be removed, especially if the registration was disproportionate in relation to the consequences for the consumer.
The balancing of interests by the court
When assessing an unjustified BKR registration, the court weighs the interest of a well-functioning credit registration system against the interest of the individual consumer. The judge looks, among other things, at the nature and extent of the arrears, the cause of the payment problems, the consumer’s current financial situation, the duration of the registration, the consequences of the registration for the consumer, and whether the consumer has now fully repaid the arrears.
If the court finds that the consumer’s individual interest outweighs the general interest of the credit registration system, it will order the removal of the registration. This is particularly the case if the registration disproportionately hinders the consumer, for example in obtaining a mortgage, while the original arrears were minor and have now been fully resolved.
The role of the AVG in BKR registrations
The Algemene Verordening Gegevensbescherming provides you, as the data subject, with additional rights that you can use when challenging an unjustified BKR registration. Under the AVG you have the right of access to your registered data, the right to rectification of inaccurate data and, in certain cases, the right to erasure of your data. In addition, you can object to the processing of your personal data if you believe the processing is unlawful.
The AVG is a powerful instrument in BKR disputes. The Autoriteit Persoonsgegevens supervises compliance with the AVG and can take enforcement action if financial institutions do not comply with the rules. Invoking the AVG can significantly strengthen your position in an objection or court procedure.
Common obstacles in removing a BKR registration
The process of having an unjustified BKR registration removed does not always run smoothly. Credit providers are often reluctant to remove registrations, partly because they want to protect their own interests and because the BKR system is designed to signal credit risks. It is not uncommon for a credit provider to reject your first objection without substantive assessment. Persistence and a well-substantiated file are therefore essential. Another obstacle is that the terms for BKR registrations are long. A negative registration can remain visible for up to five years after the end of the credit. During this period you may suffer considerable financial damage. It is therefore important to take action as soon as possible if you suspect that your registration is unjustified.
The process of having an unjustified BKR registration removed does not always run smoothly. Credit providers are often reluctant to remove registrations, partly because they want to protect their own interests and because the BKR system is designed to signal credit risks. It is not uncommon for a credit provider to reject your first objection without substantive assessment. Persistence and a well-substantiated file are therefore essential.
Another obstacle is that the terms for BKR registrations are long. A negative registration can remain visible for up to five years after the end of the credit. During this period you may suffer considerable financial damage. It is therefore important to take action as soon as possible if you suspect that your registration is unjustified.
Recent developments in case law on BKR registrations
In recent years, a clear trend has emerged in case law in which judges are looking increasingly critically at the proportionality of BKR registrations. Whereas in the past the interest of the credit registration system generally prevailed, nowadays it is increasingly ruled that the consumer’s individual interest outweighs it, especially if the registration has disproportionate consequences.
This development is partly driven by the AVG, which gives consumers stronger rights in the field of processing their personal data. Judges increasingly assess whether the processing of BKR data meets the requirements of necessity and proportionality that the
AVG imposes. This offers opportunities for consumers who want to have their unjustified BKR registration removed.
The financial damage of an unjustified BKR registration
An unjustified BKR registration causes not only frustration but also concrete financial damage. If you are unable to take out a mortgage due to the registration, you may miss the opportunity to buy a home on favorable terms. If you cannot refinance your existing mortgage, you will pay an excessively high interest rate for years. And if you cannot obtain a loan for necessary expenses, this can seriously affect your standard of living.
In some cases, you can recover the financial damage you have suffered due to an unjustified registration from the credit provider. If it is established that the registration was unlawful and you suffered demonstrable damage as a result, you can file a claim for damages. A lawyer can advise you on the options and the feasibility of such a claim.
Subsidized legal aid in BKR disputes
Engaging a lawyer for an unjustified BKR registration does not have to be unaffordable. If your income is limited, you may be eligible for subsidized legal aid via the Raad voor Rechtsbijstand. With a legal aid certificate you pay only a limited personal contribution, and the government covers most of the lawyer’s fees. In this way, professional legal assistance is also accessible if your financial means are limited.
Seek legal help in time
An unjustified BKR registration will not disappear on its own, and the longer you wait, the greater the financial damage you incur. A specialized lawyer can assess your situation, identify the correct legal grounds and guide you through the entire process from objection to possible court proceedings. With the right approach, many unjustified registrations can be successfully removed.
Are you dealing with an unjustified BKR registration and want to know what your options are? Contact us for a no-obligation assessment of your situation. Our lawyers have extensive experience with BKR disputes and will be happy to help you restore your financial freedom.
Also read
- Negative BKR codes explained
- BKR recovery code
- Removing a registration: legal routes
- Insurance law attorney
