What is a BKR coding?
The Credit Registration Office (BKR) in Tiel registers all loans and payment arrears in the Netherlands. This data is intended to prevent over-crediting, but negative coding 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 coding and a BKR registration?
Many people confuse the concepts of BKR registration and BKR coding, but there is a difference.- BKR registration is the general fact that your loan, credit or revolving credit is with the Credit Registration Office in Tiel is noted. This always happens if you take out a loan of more than €250 that lasts longer than one month. So you will automatically receive a registration, even if you pay on time.
- BKR coding only comes into view when there is something wrong with that loan, for example arrears or a special feature. The coding is an addition to your registration that indicates what exactly is going on, such as a backlog (A), recovery (H), or a special situation such as SR or RH.
The meaning of the different BKR codes
The basics: A and H coding
- A (Arrears coding): A payment arrears has arisen. This is the basic code and is always added as soon as a payment is delayed for more than 120 days. Reporting such an arrears is officially called an 'Arrears Report' and is visible as an 'A' with the relevant loan or mortgage.
- H (Recovery Coding): You have completely caught up. However, the registration will remain visible for another five years, unless there are grounds for removal. The 'H' stands for Recovery and is placed with the current credit when the arrears have been cleared. Please note: if you terminate the credit after catching up on the arrears, you will only see an end date for the credit instead of an H. The data about the terminated credit will automatically disappear from the BKR five years after this end date.
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 number that says something about the seriousness of the situation:- A1: A payment arrangement has been made, but not yet fully complied with. In many cases, a settlement has been agreed after the backlog has arisen.
- A2: the claim has been claimed or a collection process is in progress; the (residual) claim has been made due and payable.
- A3: the debt has been written off in whole or in part (remission or redemption). . This happens, for example, if at least € 250 is waived. An end date will only be stated immediately if the write-off takes place due to final discharge.
- A4: the borrower cannot be found or no longer responds to reminders; ; it means that the lender was no longer able to contact you.
Additional coding and details
In addition to the standard and numerical codes, there are additional special codes:- A5: This code means that a preventive payment arrangement has been created. This is always temporary. Once the arrangement is completed, the encryption will be completely removed.
- RN (Residual debt NHG): this is placed if the National Mortgage Guarantee(NHG) has written off an amount from the mortgage in connection with a residual debt.
The special registrations SR and RH
- SR (Restructuring Scheme): you have been admitted to a debt restructuring process (amicable or legal, for example WSNP). The registration remains valid for five years after completion of the process.
- RH (Recovery after remediation): 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 in place?
In principle, all negative codes remain visible for five years after the loan has been terminated or the arrears have been repaired. This period is laid down in the rules of the BKR, but according to the GDPR and recent case law, it may not be applied automatically. The bank must always weigh up its own interests and your right to restoration of your creditworthiness.When is an encoding registered?
A coding does not simply appear in your name. Before an arrears are officially reported to theBKR, the bank is obliged to warn you in advance. You will therefore first be notified that if you do not pay on time, registration will follow. The precise moment of registration depends on the type of credit, but the period between the occurrence of payment arrears and the actual BKR notification varies from two to four months.Special feature codes: direct registration
In addition to the standard A and H codes, the BKRanother six special codes that indicate the severity and stage of the backlog. Please 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 yourBKR overview. This way you know where you stand and you can take timely action before a registration becomes final.When is a coding incorrect?
A coding is incorrect if it is not (or no longer) proportional or has not been recorded correctly. Examples:- The backlog was recovered in a timely manner, but the H coding 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 has not heard you or has not weighed up your interests;
- The registration is contrary to the GDPR principles of proportionality and data minimization.
What can you do in case of incorrect coding?
- Request your details from the BKR via bkr.nl. Check whether the encoding is correct.
- Submit a request for correction or deletion to the lender that made the registration.
- Is this rejected? Then seek legal help. Arslan Advocaten can submit a reasoned objection with reference to the GDPR and recent rulings of the KiFiD.
- Does the refusal persist? Then you can enforce removal or shortening of the period through legal proceedings.
Common mistakes with BKR reports
In practice, we see that lenders regularly make mistakes, such as:- placing an A code without warning; bankenare obliged to inform you in advance that arrears with the BKRwill be reported if you do not pay on time. Without such a clear warning, this registration cannot simply take place;
- not adding an H-code after recovery;
- maintaining a registration even though the debt has long been repaid;
- combining an A code with an unjustified EVR registration in fraud investigations.
Case law on BKR coding
Judges and the KiFiD increasingly emphasize that encryption should not be automatic. In recent cases, a registration was deleted because the person concerned was now financially stable again and the interests of the bank did not outweigh the damage caused by the registration.BKR codes and mortgage applications
A negative registration – especially A2 or A3 – can block your mortgage application. Even if you have paid off the debt, the registration can continue for years. We help clients to rely on the proportionality test in such cases: if the financial situation has been restored, the registration must be deleted or shortened. Whether you actually qualify for a mortgage depends greatly on the type of BKR coding. With an A3 or A4 coding, obtaining a mortgage is usually excluded. Other codes, such as an A or A2 code, can complicate the process, but do not necessarily exclude a mortgage. In these cases it is wise to seek professional advice in a timely manner, so that you know where you stand and what steps you can take to increase your chances. Please note: even after recovery from your financial situation, encryption can still affect your options. It is therefore important not only to carefully check the BKR overview, but also to know the impact of the different encodings on your future plans.What can Arslan Advocaten do for you?
- We check the correctness of your coding;
- We assess whether the registration complies with the GDPR and the principle of proportionality;
- We will write the removal request for you;
- If necessary, we will initiate proceedings with KiFiD or the civil court;
- We try to recover the costs from the lender if the registration proves to be incorrect.