Whereas most people deal with a BKR registration at one time or another, an EVR registration is a lot less well known. Yet a registration in the External Referral Register (EVR) has very significant implications for your financial options. In this explanation, we'll tell you exactly what an EVR registration means, what the consequences are, and what your options are for challenging it.
An EVR registration remains on the CIS registry for eight years. Are you suffering from this registration? Then request a no-obligation intake to find out if we can have it removed for you.
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In a great interview in the NRC, our own Vera van der Vliet described an EVR registration as a financial prison. The following is an excerpt from the interview in question.
"The EVR is a financial prison," says lawyer Vera van der Vliet. She works at Dynamiet Netherlands, a company that helps people challenge their inclusion in the registry with banks, Kifid or courts. "Banks have the power to lock people up financially, to punish them. And that doesn't always happen in a fair way."
"You almost always end up in that EVR registry for eight years. That is not nearly always commensurate with what happened," Van der Vliet observes. "One person engages in money laundering as a criminal, another fills out a question on a form incorrectly."
central fraud register managed by the CIS (Central Information System) Foundation. This register allows banks and insurers to register individuals they believe have been involved in fraud or serious breach of contract.
The EVR is part of the EVA (External Referral Application). The big difference from, say, a BKR registration is that an EVR registration is specifically for cases of alleged fraud. So this is not about late payments, but situations where a financial institution believes you have intentionally provided false information.
Important to know: the EVR is visible to all affiliated financial institutions. This means that if one bank or insurer registers you, all other affiliated institutions can see this. This has far-reaching consequences for your ability to obtain financial products.
"An EVR registration is a financial prison for many people. The consequences are often much more severe than people realize. The most problematic thing is that some registrations come about through a simple mistake or unclear communication, but the consequences are enormous."
Deepak - Legal Specialist
In addition to the ERR, there is also an Internal Referral Register (IVR). It is important to understand the difference between the two:
There is also the Incident Register, which is maintained by individual institutions. This register often functions as a preliminary stage before EVR registration is undertaken. The Incidents Register records suspicions and incidents that are still under investigation.
When a bank or insurer believes that there is sufficient evidence of fraud, a registration can flow from the Incidents Register to the EVR. From then on, the registration is visible to all member institutions.
An EVR registration does not come about overnight. Officially, the threshold for this is high. There must be more than just a suspicion of fraud. For a legitimate EVR registration, the following requirements apply:
First, there must be evidence of intentional misconduct. It is not a simple mistake or misunderstanding. There must be concrete facts and circumstances that can support a criminal proof.
Second, a proportionality test must be carried out. This involves weighing the interest of the financial sector (combating fraud, protection against damage) against the interest of the person concerned (unemployment, inability to take out insurance, mortgage repudiation). This balancing should not be absent.
Third, the conduct must threaten the interests of a financial institution or the continuity and integrity of the entire financial sector.
In practice, we see EVR registrations in the following situations:
An EVR registration often arises when applying for financing. The lender checks the supplied documents such as pay slips, employer statements or bank statements. If a check reveals that these data are not correct, it can lead to an EVR registration.
The problem here is that what the financial institution sees as intentional fraud can sometimes be the result of a mistake. After all, a mistake is easily made. In practice, however, banks and insurers often overlook this, resulting in an unjustified EVR registration with all its consequences.
Requesting an intake interviewAn EVR registration has very far-reaching consequences for your financial options. These consequences are even more severe than those of a negative BKR code. With an EVR registration, it becomes virtually impossible to enter into new financial relationships:
If you want to apply for a mortgage, you will be rejected from almost all regular mortgage lenders. The same is also true for loans with banks: you will almost certainly be rejected. When taking out insurance, you run into the same problem: almost all regular insurers will reject you. Even opening a new bank account is often impossible.
The reason the impact is so far-reaching is because all member financial institutions can see the registration. An EVR registration carries over to all sectors: banks, insurance companies and lenders. You cannot simply move to another provider because they all have access to the same registry.
This, in the NRC, a legal specialist from Dynamite Netherlands described an EVR registration as a "financial prison." You almost always end up in that registry for eight years, which is far from commensurate with what happened. One person is engaged in money laundering as a criminal, while the other may have filled out a question on a form incorrectly. Yet both receive the same severe sanction.
The only "last safety net" is through specialized providers such as De Vereende, which do accept clients with EVR registrations. But this then comes with significantly higher premiums and stricter terms and conditions.
An EVR registration can remain in the registry for up to 8 years. This is the maximum retention period according to the Financial Institutions Incident Alert System Protocol (PIFI). This is long, especially when compared to BKR registrations, which generally disappear after 5 years.
It is important to note that these 8 years are not always applied automatically. After a mandatory proportionality test, this period can be shortened, for example to 4 years. In practice, however, we see that many financial institutions default to the maximum term without a thorough proportionality test.
The term begins to run from the time of inclusion in the registry, not from the time of the facts that led to the registration. For milder violations, shorter terms, such as 3-5 years, are often more justified. This is supported by several rulings by Kifid (Financial Services Complaints Institute) and judges.
It is also important to note that an EVR registration can be removed early in some cases. However, this does not happen automatically and usually requires legal action.
EVR registrations find their legal basis in various legal frameworks. The most important are:
The Protocol Incident Alert System Financial Institutions (PIFI) provides the basis for EVR registrations. Articles 5.2.1 and 5.3.2 define the conditions for EVR registration. A proportionality test is mandatory when recording and when determining the duration. The maximum retention period, as mentioned, is 8 years.
In addition, the General Data Protection Regulation (AVG) plays an important role. Article 5(1)(c) requires minimal data processing and Article 5(1)(e) states that storage limitation must be observed. Article 6 is about balancing the legitimate interest of the financial sector with the privacy interest of the data subject.
Finally, there is the case law of Kifid, the state courts and the Supreme Court. This shows that the balancing of interests must be explicit. Financial institutions may not routinely apply 8 years. The duration must be proportional and can be shortened on grounds of proportionality.
These legal frameworks provide important starting points for challenging an EVR registration if it is unjustified or if the duration is disproportionately long.
Yes, challenging an EVR registration is certainly possible, but it is not easy. There are three routes you can take to challenge an EVR registration, and they can also be used in parallel:
Route 1 is direct contact with the institution. You can file an objection with the bank or insurer that registered you. You can request removal or shortening of the registration period based on inaccuracy of the facts, disproportionality of the duration and consequences, or flaws in the balancing of interests.
Route 2 is through the Financial Services Complaints Institute (Kifid). If your objection with the financial institution is unsuccessful, you can start a complaint procedure with Kifid. Kifid then tests whether the registration is proportionate.
Route 3 is through civil litigation. You can petition the preliminary injunction court (summary proceedings) for removal of your registration. You can also initiate proceedings on the merits in which the case will be judged on its merits.
Research shows that many EVR registrations are found to be unjustified upon further investigation. Judges scrutinize proportionality more and more strictly the longer the registration runs. A retrospective balancing of interests can lead to shortening or even removal of the registration.
An EVR registration is possible, but it varies from case to case. The chance of success is between 70-80%, depending on the specific circumstances of your case. This is considerably lower than when challenging BKR registrations.
You can access your own EVR registration through the CIS Foundation. EVR registrations are part of the CIS database. You can submit a request for inspection via the website of Stichting CIS. You will then be informed within one month about any registrations in your name.
It is important to note that only you, the data subject, can have access. A third party cannot do this for you, unless that person is your trustee. At Dynamite Netherlands, we can help you fill out the disclosure form correctly, but you will have to sign it yourself.
If you know you are on the EVR, it is wise to seek legal advice. A specialist can assess whether the registration is justified and what steps you can take to challenge it.
Of course, prevention is always better than cure. Therefore, pay close attention to what documents you submit with financial applications. Make sure all records are completely accurate. The best way to avoid an EVR registration is to always be very careful with your financial records and communications.
Do you have an EVR registration and want to know what your options are? At Dynamiet Netherlands, we are happy to help you. We assess whether it makes sense in your situation to challenge the registration and take the appropriate legal steps. Contact us today contact us for a free intake interview.
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