Major concerns over BKR expansion plans

It serves no purpose, it's just a revenue model

Dynamite Netherlands is very concerned about BKR's "expansion plans. As the largest legal service provider in challenging BKR registrations, Dynamite Netherlands sees in daily practice how often things already go wrong. Director Deepak Thakoerdien: "This serves no purpose except to expand BKR's revenue model."

It was announced this morning in De Telegraaf that the BKR wants to increase its grip on the borrowing behavior of the Dutch. The plan is to also register mortgages and share that data with other lenders up to and including the Wehkamp and providers. In addition, BKR wants to actively approach mortgage lenders if a customer is in arrears elsewhere. Until now, that only happens when someone applies for a new loan or mortgage.

Skeptical and concerned

Dynamite Netherlands is skeptical and concerned about the plans. Thakoerdien: "It's just another leg to the revenue model. The BKR is basically a data trader. A data trader wants to gather more and more data. The BKR receives a fee from its customers per registration, modification and review entered. That the BKR is looking for new income is not new. Initially the BKR also wanted to register student loans, but the government put a stop to this. So now the BKR is setting its sights on registering mortgages."

While it already often goes wrong, resulting in very distressing situations. "All too often we see well-intentioned people who have once fallen into financial penury due to distressing circumstances, and then get caught up in the bureaucratic clutches of the BKR for years. Until we intervene."

Privacy violation

Currently, mortgages are not registered with the BKR. Only if there are three months of arrears are mortgages registered in conjunction with arrears. "We wonder what the added value is of further registration. After all, arrears are already registered so that a lender can understand any financial problems. Moreover, there is already a database for mortgages: the Land Registry. Under the BKR's new plans, every affiliated party, from mail order company to telecom provider will be able to see how high your mortgage is or was. Perhaps as far back as years. What good will that lender do with that information? Moreover, a mortgage is different from a "regular" loan. After all, there is collateral with a value in the form of the home. Therefore, for a really clear picture of your debt position, the actual home value and monthly burden would have to be included. Of course, that would be completely insane, a pure violation of privacy."

The active sharing of information about any arrears, as the BKR wants, is also an incomprehensible and undesirable plan. "Of course, there will also be a revenue model behind this, but that aside. We don't quite understand the point of approaching others about a customer's debts. Suppose you are in arrears with T-Mobile and the BKR then notifies ABN Amro about it. In what way can they then help prevent further debt? It's not that you suddenly get a discount from the bank or that they become more lenient. You just have to pay. If necessary, an arrangement can be made, but this can also be done without the so-called signal function of the BKR. Because of the signal function, customers are actually considered suspicious and unsavory with the lender where there are no problems. This can create more psychological pressure and therefore be counterproductive. Sharing information without added value, purely for registration is also a violation of privacy."

Around the table

Dynamite is not against BKR registrations and also sees protecting consumers from 'overcrediting' as a great good. Dynamite would like to sit down with interest groups and BKR to see how the interests of consumers can actually be best served. "The BKR could better focus its arrows on flash loans with high interest rates, for example. That's where the big danger is for the financially weak. Not with mortgages. We are open to talks and advice. But first a line must be drawn through these unholy plans. If BKR does not do it itself, we call on politicians to intervene once again."