What is the Central Credit Register for Individuals?
The Central Credit Register is primarily a tool to combat over-indebtedness. It records all consumer credits and all mortgages signed by individuals as well as all payment defaults (better known as “listing”). These are credits taken out for private purposes only, so it does not list contracts for commercial or professional purposes. It must be consulted by credit professionals before granting a credit.
Thus, in practice, lenders must provide your identity and the credit contract to the Central Credit Register as soon as it is signed. Similarly, in the event of a payment default and credit denunciation, lenders must inform the Central Credit Register, which then proceeds with the listing.
The Missions of the Central Credit Register for Individuals
The Central Credit Register’s essential mission is the registration and provision of information to lenders aimed at strengthening the means of preventing over-indebtedness of private individuals. The recorded data is communicated by banks, insurance companies, and finance companies.
What information is communicated?
The information communicated concerns all consumer credit contracts and mortgages concluded by individuals for private purposes as well as all payment defaults.
Latest recorded data
You will find the latest data recorded in terms of credit at the Central Credit Register for Individuals.
Thus, the Central Credit Register contains data on 6,236,412 people and 11,437,787 credit contracts, a slight increase compared to 2011. In 2012, 1,424,406 new credit contracts were recorded, a decrease of two-thirds compared to 2011. The origin of this decline lies in the credit openings, with 522,277 contracts recorded in 2012 compared to 3.2 million the previous year. The sharp increase in 2011 was the consequence of the obligation to communicate overdraft facilities on current accounts.
In 2012, the Central Credit Register also recorded 20% fewer new mortgages. This trend can probably be explained by the end of 2011 removal of state aid for energy-saving investments. But with 321,261 new contracts, the 2012 level is nevertheless almost 20% above the annual average for the period 2007-2009.
The number of new loans and installment sales decreased by 9% and 25%, respectively. The economic crisis certainly contributes to this decrease, but for installment sales, it marks a strengthening of the annual trend that began in 2006.
Final word on listing
After two unpaid installments, the lending institution is obliged to denounce your credit contract and proceed with your listing. Once listed, you will remain so until you have settled the credit contract, and even once your credit is repaid, you will remain listed for 12 months. Therefore, there is no question of obtaining a credit during this period unless you own a property free of charge (Crédit propriétaire).