The number of mortgage loans in particular saw a sharp increase in 2015, thanks to the historically low interest rate: 621,326 new mortgage loans, 40% more than in 2014 and twice as many as in 2013. 596,621 installment loans were recorded, an increase of 17.2%. The other loans were credit openings and the granting of new credit cards.
The Central Office for Credits to Individuals at the NatBank of Belgium registers all loans. Banks and other credit institutions must report all new and changed loans to the Centro bank, both traditional loans and flexible loans in order to be able to pay with a credit card or to go below zero on a current account.
Before granting a new loan, the financial institution with which you apply must examine whether you are able to repay that loan and whether you already have too many debts compared to your financial situation (assets, income, etc.). That is why the institution requests you for information (payslip, tax assessment notice, title of ownership, etc.).
But she is also legally obliged to consult the Centro bank to obtain a list of existing loans. If she suspects that you will not be able to repay an additional loan, she must refuse it. This is an efficient tool in the fight against excessive debt.
The Centro bank also records data about defaults. If you have three repayments on your loan or if you do not pay an outstanding installment for three months, your bank will notify the Centro bank. Even if you are below zero on your current account for more than three months or do not pay your credit card invoice, this will be passed on. In the course of last year, 161,931 new arrears were registered at the Central.
Storage time of the registration
For the contracts that normally expire, the registered date is automatically deleted three months and eight days after the end date of the agreement.
The retention period for non-payments is a maximum of ten years. However, if you settle your contract, ie you pay all over amounts, the period will be reduced to one year. Anyone can consult their data at any time and have it corrected if they are incorrect. You can find more information on the NBB website.