Difference EDR and BKR: what are the main differences?

What is BKR and what is EDR? The basic definitions

Let's start with the basics. BKR stands for Bureau Krediet Registratie. This is a foundation that has been registering all credit of Dutch people in the Central Credit Information System (CKI) since 1970. BKR is the official agency designated by law that is the only one authorized to collect and manage all credit data in the Netherlands.

EDR, on the other hand, stands for Economic Data Resources. This is a commercial credit reporting agency established in 2000. EDR performs credit reviews and also has a collection branch (EDR Debt Collection). They work on behalf of companies such as leasing companies, energy companies, insurers and telecom providers.

So the fundamental difference is in the legal status. BKR is a foundation with a legal monopoly, while EDR is a commercial company offering services to other companies. BKR registers, EDR tests and advises.

"Many people think that EDR and BKR are the same thing, but this is a misunderstanding that we often have to correct. BKR is a central registry, while EDR is a commercial agency that performs reviews. This difference is crucial to your options when facing financial problems."

Deepak - Legal Specialist

EDR's role in private leasing and other financial products

EDR plays a crucial role in the conclusion of private lease contracts in the Netherlands. Many large leasing companies such as Athlon, Justlease and BMW Financial Services outsource their underwriting process to EDR Credit Services.

When you apply for a private lease, the process often goes as follows:

After acceptance of the offer, you will receive an email with login information for the EDR consumer portal. Here you upload various documents such as your proof of identity, payslip and bank details. EDR then checks your identity, performs a BKR check and calculates your borrowing capacity according to the capacity standard of the Private Lease Quality Mark.

It is important to understand that EDR works on behalf of the leasing company in this process and does not enter into contracts itself. EDR only advises whether your application should be approved or rejected. The leasing company ultimately makes the decision.

Something else important happens when your private lease application is approved: the lease contract is registered with BKR by the leasing company. Since April 2022, 100% of the full lease amount is registered with BKR. EDR does not perform this registration, but the leasing company itself is responsible for this.

At car leasing this plays an important role because you then have to deal with both agencies: EDR for acceptance and BKR for the final registration of the contract.

What does this mean for your financial options?

Now that you understand the difference between EDR and BKR, it's important to know what this means for your financial options.

A negative BKR registration (for example, an A or A2 code) generally has a greater impact on your borrowing options than a negative rating with EDR. That's because all lenders in the Netherlands are affiliated with BKR and can see your file.

In principle, a rejection by EDR applies only to the specific application in which EDR has been engaged as reviewer. It is not automatically visible to other parties unless they also work with EDR. Moreover, an EDR rejection can be reconsidered on a new application if your financial situation has improved.

By default, a BKR registration remains for five years, even if you have already paid off the debt. At borrowing money with BKR registration, you run into all kinds of obstacles. EDR uses different retention periods that can vary depending on the nature of the information.

If you are experiencing problems due to a BKR registration, Dynamite Netherlands can help. We specialize in legally addressing unjustified or disproportionate BKR registrations. In some cases, we can also advise on situations with EDR, although the legal tools are different in those cases.