Deletion from the Credit Bureau

The Credit Bureau is an institution that collects, stores, and provides information about individuals' credit histories. This data is used by banks and other lenders to assess the financial creditworthiness of loan applicants or those seeking other financial products.

 

In Romania, Credit Bureau S.A. is a private entity that centralizes information about loans contracted by individuals, including delinquencies, payment delays, and overall financial behavior. This information helps financial institutions make informed decisions regarding the granting of loans.

 

The information stored by the Credit Bureau includes data about active loans, outstanding balances, payment delays, as well as potential early repayment of loans. The main goal is to promote transparency and financial responsibility, both from creditors and debtors.

 

The Credit Bureau was established to ensure the transparency needed by various financial institutions, which required information about a potential client with whom they were about to enter into a contract. In this regard, several financial institutions (referred to as "Participants") laid the foundation for this private legal entity, which contains data on credit activities in a centrally organized database.

Entries (or records) in the Credit Bureau are the reports made by financial institutions regarding a client's payment behavior in relation to a credit contract. These can include positive information (timely payments) or negative information (delays, arrears, refinancing, fraud, etc.).

 

Types of entries in the Credit Bureau:

• Payment arrears: If a client fails to make payments on time (usually more than 30 days overdue), the bank or non-banking financial institution (NBFI) reports this information.
• Active loans: The existence of an active loan is noted, even if it is paid on time.
• Credit applications: When a client applies for a loan, the request may be recorded, even if it is not approved.
• Fraud: If a client is involved in banking fraud, this information may be noted.
• Refinancings or restructurings: If a loan has been restructured due to payment difficulties, this can be reported.
• Closed loans: The history of loans that have been repaid.

 

Lastly, the Credit Bureau also shows your credit score (scoring), which is a numerical indicator calculated based on payment history (35%), active loans (30%), the duration of the credit history (15%), new loans (10%), and credit diversity (10%).

Entries in the Credit Bureau are kept for a maximum period of 4 years. During this time, if you have been recorded with unfavorable remarks (such as late payments, enforcement actions, etc.), financial institutions will theoretically avoid entering into credit agreements with you, based on your “reputation” as a “bad payer” in such contracts.

 

Moreover, these entries may even lead to less favorable offers if financial institutions decide to enter into a contract with you (for example, higher interest rates than those typically offered).

 

In other words, a positive credit history will certainly help you when applying for a new loan.

According to the General Data Protection Regulation (EU Regulation No. 679/2016), the data subject (in this case, the individual with entries in the Credit Bureau) has the right to request the deletion of data.

 

Entries in the Credit Bureau are made at the request of the Participants. It is the Participants who are also entitled to request the removal of entries that were made at their request.

 

Therefore, any financial institution that initiated your entry in the Credit Bureau (specifically those related to negative history) can “reverse” this action and request the deletion of all negative entries regarding you.

 

Alternatively, you can directly address the Credit Bureau, requesting the immediate removal of all entries related to you, based on the principle of the right to be forgotten (the right to data deletion).

 

In the current economic context and with the financial needs of individuals, credit history plays an essential role in accessing financial products. Negative records in the Credit Bureau can be a significant obstacle in obtaining a loan or credit. There are legal solutions for removing these negative entries.

 

Reasons that may justify early removal (before the maximum 4-year term expires):

• Reporting error: If negative data was transmitted incorrectly or there is an identity mix-up.
• Unjustified entries: If the financial institution reported data without legal or contractual basis.
• Violation of personal data protection rights: If the entry was made in violation of GDPR provisions or without the valid consent of the data subject.
• Full debt repayment: When financial institutions agree to remove negative entries after the debt has been fully settled.

 

We can assist and represent you in this process! Choose positive entries with the most valuable members of your team!