BKR registration retention period five years too long
Zoetermeer/Tiel - Once again, a court rules that the maximum five-year retention period for a negative registration in the Central Credit Information System (CKI) of the Bureau Krediet Registratie (BKR) is too long. The court shortens the BKR registration to two years.
What was going on?
A client of Dynamiet Netherlands opened a current account with a €500 overdraft facility with Rabobank in 2009. In 2010, she also takes out a revolving credit of €2,500. However, partly due to a traumatic upbringing, she was declared unfit for work due to psychological problems. As a result, it was not always possible for the client to meet her financial obligations; indeed, her income fell dramatically. Unfortunately, a backlog of payments on the revolving credit arises and overdrafts occur. Consequently, Rabobank terminates the financings in 2013 and places a arrears code and a singularity code 2 in the BKR register.
Client was not able to return to work until 2016 and immediately made payment arrangements with Rabobank. She fulfilled these payment arrangements well, after which she repaid the entire debt in August 2019. She is also doing well again from then on. She has a stable relationship, children and a good job with opportunities for advancement. Therefore, the client wishes to leave her small rental property and purchase a new home with her partner. Financially they can bear this, but the negative BKR registration stands in the way of obtaining a mortgage. Since the last payment was made in August 2019, the negative BKR registration will remain in her name until August 2024 and thus she cannot obtain financing until 2024.
Dynamite starts proceedings
Accordingly, in early 2020, client contacts Dynamiet Netherlands to see if she can get rid of her negative BKR registration. Dynamite Netherlands conducts an investigation and eventually requires Rabobank to remove the negative BKR registration. This is because the client has been stable since 2016 and her personal circumstances provide extenuating circumstances, Dynamiet Nederland said. However, Rabobank refuses to remove the negative BKR registration. As a result of the refusal to remove the negative BKR registration, Dynamiet Nederland and her client decide to file a lawsuit against Rabobank to still get her BKR registration removed.
The lawsuit: BKR registration is justified
Consequently, on August 11, 2020, the oral hearing of the lawsuit takes place in Maastricht. The case is discussed by Dynamiet Netherlands, together with its client, and the lawyer of Rabobank, but a solution without court intervention proves impossible. Accordingly, the District Court of Limburg rendered its decision on September 4, 2020.
The court considered that the BKR registrations were rightly posted. There have been arrears and they must be registered. However, the question is whether maintaining these registrations at this time, and for the full five years, is still necessary. The court believes that a five-year registration period is far too harsh a punishment in this case. The court takes into account that all debts have now been repaid, there is a good future perspective, and the client has made a full effort with respect to her disability and ability to pay the outstanding debts. The court therefore rules that it is going too far to hinder the client from obtaining financing even after 2021 and orders Rabobank to remove the BKR registration as of August 1, 2021. In doing so, the court shortens the maximum retention period of the BKR registration by three years, from five to two.
This is not the first time that a court finds that the maximum retention period of a BKR registration of five years is too long. Earlier, the District Court of Northern Netherlands and the District Court of Overijssel, among others, ruled that a BKR registration for five years is too long.
Need help?
Are you also suffering from a BKR registration and would like to know if you qualify for early removal of that registration? Then contact Dynamite Netherlands for a no-obligation intake interview.
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