Intensive first month of the register – less voluntary credit bans than expected

The Positive credit register was opened at the beginning of April. The register has been in use for about a month now, and the requesting of credit register extracts has started briskly.

Over 11 million loan contracts have been reported to the register, and their total worth is around €150 billion. Over 90 per cent of the 256 registered lenders have reported loans to the register. The requesting of credit register extracts started briskly after the register was opened. Lenders requested around half a million credit register extracts in April. On average, around 20,000 extracts were requested per day and around 130,000 per week. On weekends, the number of requests was slightly lower, as can be expected.

“We are anxious to see the average number of requests over a longer period of time,” says Aino Sarakorpi, Project Director.

A lender receiving a credit register extract from the register uses it to assess the loan applicant’s creditworthiness. The register receives and shares loan data; it does not make decisions on credit. The register shares with the lender data that has been reported on the customer who applies for a new loan. The lender carries responsibility for how they process the data they receive from the register and what decision they make based on the data.

Less voluntary credit bans than expected

Private individuals can set a voluntary ban on credits for themselves in the register. The credit ban protects against over-indebtedness and can help victims of identity theft, for example. Around 4,600 credit bans have been set since the register opened, which is less than expected.

“We are particularly pleased to see how private individuals have found our e-service. In April, users logged in to the service around 210,000 times. On the other hand, we expected that more people would set voluntary bans on credits,” says Aino Sarakorpi.

Incorrect or incomplete data has raised questions

Private individuals have contacted us especially to ask about their incorrect or incomplete loan data. The loan data is reported to the register by lenders, i.e. banks and other financial institutions. If the data is incorrect or incomplete, the lender must correct it without delay. Some lenders have also themselves informed us of errors or omissions in their loan contract data.

“The lender is responsible for reporting the loans they grant and advising their customers. If you notice incorrect data in the register, you should ask your lender to make the necessary corrections. We are sorry for any inconvenience that incorrect or incomplete data may have caused you. We hope that lenders will be able to report the data correctly in the future, so that individuals will avoid challenging situations when applying for a loan,” says Aino Sarakorpi.

The credit register extract also shows income data on the 12 calendar months preceding the date of request. The register receives the data from the Incomes Register. The income data includes the wages, benefits and pensions paid to the individual. The Incomes Register does not contain information on capital income or business income.

“If you have only business income, for example, the lender must check your income data with you when you apply for a loan,” Aino Sarakorpi points out.

Joint-liability loans have caused confusion

Joint-liability loans, such as shared home loans, have caused confusion among people. Joint-liability loans are reported to the register as total amounts. A person who has a shared home loan with their spouse will see the total amount of the loan in their own data. The loan details show that the person shares the liability for the loan with their spouse.

“In other words, if you and your spouse have a shared home loan of €300,000, the register shows that both of you are liable for a loan of €300,000. In addition, the register shows that the liability for the loan is shared by two individuals. This is because each one of you is liable for the entire loan although you have taken out the loan together. If one of you fails to make repayments, for example, the other is liable to pay them,” says Aino Sarakorpi.

Similarly, lenders see the total loan balance and the number of debtors on the credit register extract. Where a shared home loan is concerned, lenders see the total balance of the home loan and that two debtors are liable for the loan.

Unclarities in debt arrangement entries

We have received customer feedback on debt arrangements that have ended but are still shown in the register. Lenders report only limited data on loans included in a payment plan in a debt arrangement. In addition, the debt arrangement is shown in the register. When the payment plan ends, the lender must remove the entry about the loan’s inclusion in a payment plan in a debt arrangement.

“If you had a loan in a debt arrangement and it is still shown in the register although it has ended, you can contact your lender to find out why the entry has not been removed,” says Aino Sarakorpi.

If the loan has not been paid in accordance with the payment plan, the loan may still be shown in the register even though the entry about the debt arrangement has been removed. Also, a loan that has been included in a debt arrangement will appear in the register again if you have a confirmed liability to make additional payments after the end of the payment plan.

Read also

• Are you wondering about the register’s information on your home loan or debt arrangement? – Read about how your loans are saved in the register
• For private individuals – Voluntary ban on credits
• Frequently asked questions