Blacklists of unreliable customers are not only threatening to banks. Employees of telecommunications companies, providers of various services, and even ticket controllers on city buses are increasingly talking about it. What is a banking blacklist and are there any other?
In the 90’s the phenomenon of non-payment of debts was very common. There were several reasons. First of all, loans and credit were horrendously expensive, real unemployment exceeded 55% in some regions of the country, and inflation was galloping like crazy, which caused a large proportion of borrowers simply not able to bear the burden of rising living costs and loan installments.
What is a blacklist?
Following the example of Western solutions, in the 90s the Association of Polish Banks created the Bank Register of Unreliable Customers (BRKN) colloquially called the blacklist of banks. It was to secure the interests of banks, which by entering in the register of customers having problems with the repayment of their obligations, warned other players (banks) to take care of this customer and not lend him large sums.
To this day, it is not difficult to get on the blacklist of banks. It is enough for three months not to pay your liabilities to become a “record” on the bank blacklist. However, it is difficult to disappear from it. It must take 10 years from entering, or at least 2 years from repayment of all liabilities together with interest and other costs.
How does blacklist work?
The Bank Register of Unreliable clients operates on the same legal basis as the Credit Information Bureau (Article 105 (4) of the Banking Law). To be entered as an unreliable customer in the database by the bank, two conditions must be met in total, i.e. the total value of the debt must exceed USD 200 for individual clients and USD 500 for entrepreneurs, and at least 60 days must elapse from the due date of this liability.
After these 60 days of delay, the bank will certainly send a notification to the client about the “forgotten” installment and that in the event of further delay “will be forced” to enter the delinquent in the Bank Register of Unreliable Customers within 30 days of receiving such a document.
Consequences of being blacklisted
Banks use the Registry as a tool for the initial selection of loan applications. Clients whose data is on the blacklist usually get a “negative” answer. Other people often do not even realize that the bank was looking for their personal details in the register of unreliable customers.
But if the bank did not find the customer on the bank blacklist, it does not mean that he will grant a loan. In Poland, we have several other blacklists kept, e.g. by debt collection companies, including Credit Information Bureau (BIK), National Debt Register, Economic Information Bureau, i.e. KRD BIG, ERIF BIG Debtor Register, and BIG InfoMonitor.