363,573 Belgians are currently listed at the National Bank of Belgium. But what did they do to find themselves in this delicate situation?
What does it really mean to be “listed at the NBB”? How long does it take to disappear from this register? Let Credafin explain it all to you.
Recently, we talked about how the percentage of defaulting borrowers in Belgium decreased in 2017. However, despite this decrease, the National Bank of Belgium (NBB) still recorded no fewer than 363,573 Belgians in default of payment by the end of the past year. Let’s find out more about the “bad payer” label and the missions of the NBB.
The Roles and Missions of the National Bank of Belgium
In addition to issuing coins and banknotes, the National Bank of Belgium acts as a financial ambassador to international economic institutions. It also maintains an effective and reliable financial system, and is responsible for collecting, analyzing, and disseminating a wealth of economic and financial information.
It is therefore the NBB that counts the number of loans granted to Belgian households. These are recorded in what is called the Central Credit Register for Individuals or CCR. It is also the NBB that records “bad payers”, which are those who have failed to fulfill the obligations they committed to in terms of credit.
Definition of a Bad Payer
The label “bad payer” is attributed to someone once certain criteria are met:
- In the context of an installment sale, installment loan or a leasing agreement:
- First, when a due term (partially or fully), is unpaid three months after the due date;
- Next, when three consecutive terms are unpaid (fully or partially);
- When an immediately payable amount is not reimbursed (fully or partially);
- In the context of a credit line:
- When the total amount to be repaid has not been settled one month after the set deadline;
- When a term (partially or fully) has not been paid three months after the due date;
- In the context of a mortgage loan:
- When a term (partially or fully) is unpaid three months after the due date;
- When a term (partially or fully) is unpaid one month after formal notice by registered letter.
How Long Does One Remain Listed at the National Bank of Belgium?
The data of a “bad payer” remain recorded in the NBB files:
- 1 year after settlement of the default if it has been regularized;
- 10 years after the default if it has not been regularized.
Being Listed at the National Bank of Belgium: What Are the Consequences?
Ultimately, being listed at the National Bank of Belgium entails a whole series of undesirable consequences… Simply put, if you are listed, it will be almost impossible to take out a loan, regardless of the type. All lending organizations (credit institutions) are indeed obliged to refer to this infamous blacklist before granting credit.
It should also be noted that to obtain satisfaction, the NBB can also carry out a garnishment of wages or on movable and immovable property.
So, be cautious…
For more information: www.nbb.be.
For more information on the Central Bank
European Monetary Policy Definition:
Since 1998, in the European Union, monetary policy is the responsibility of the ECB (European Central Bank). It is an independent supranational structure from the political powers of the member states.
