The credit register is a file that records the history of all credits that have been applied for by banks. Some of its aspects are similar to those of the DB Bank list, mainly dedicated to banking bans and credit repayment incidents.
The Credit Register is basically an instrument for easy verification of the indebtedness of each borrower and for the avoidance of a loan that he would not be able to repay.
An accountability tool
The establishment of the credit register aims to anticipate bad decisions and to prevent households from falling into the trap of over-indebtedness. This is to make borrowers more accountable for their commitment to the borrowing institution, but also to protect credit institutions from a potential risk of loan default.
Banking institutions see the credit registry as a more effective way of responding to the Lagarde scheme, which states that the lending entity must ensure that the borrower is solvent before validating the request. Access to more detailed information could, in fact, reduce the number of borrowers who are too daring and whose debt situation is no longer favorable to obtaining a loan.
The national registry of credits pointed the finger?
In order to better control risks, the establishment of a “positive file” that lists all the data relating to the borrower, whether negative or positive, is at the heart of the controversy.
This national credit register, the use of which is already common in a number of European countries, has been advocated by the Consumer Law, known as the Hamon law. The goal is to have a file listing all the loans subscribed by individuals and to allow credit institutions to control the level of debt of each borrower before giving his response.
In spite of this noble mission, the national registry of credits did not find favor with the eyes of the UMP parliamentarians who fear an abusive use of this file at the risk of seeing it exploited in favor of exclusively commercial interests. One of the points raised is also the fact that this register does not integrate the mortgage which is however at the origin of the majority of the problems of indebtedness of the French families. According to these elected officials, the FICP or credit repair incident file is sufficient, because the national register of credit to individuals or RNCP could be considered an infringement of freedom, especially if the use of information collected exceeds the simple measure precautionary.