KRD vs BIG
To avoid confusion, it is worth explaining at the outset that the National Debt Register is in fact a database belonging to one of the five Economic Information Offices operating in Poland, being at the same time the oldest of them – as it has been operating continuously since 2003.
Important!
There are five BIGs operating in Poland:
- BIG InfoMonitor Debtor Register;
- ERIF Debtor Register;
- National Telecommunications Debt Information BIG;
- National Economic Information Office;
- National Debt Register.
KRD’s activities are based on several elements: accepting information on consumers and businesses, checking the financial credibility of reported entities, monitoring contractors and providing financial reports.
How does data on individuals and companies get into the KRD?
Consumers and companies in arrears can end up in the National Debt Register, but this does not happen automatically – in order for an entry on an entity to appear in the KRD database, it must be reported by a creditor or a debt collection company.
Before this can happen, however, there must be specific circumstances.
KRD consumer registration:
- First: the obligation, the repayment of which is delayed, must arise within the framework of a specific legal relationship – it can be the result of, for example: a credit agreement, a distribution agreement or a contracted service;
- Second: the amount of said commitment must be a minimum of PLN 200;
- Third: the creditor must present the debtor with a demand for payment, clearly stating that the next step (if the debt is not received) will be to submit the debtor’s data to one or more debt registries that collect information from entities;
- Fourth: a minimum of 30 days must elapse between the debtor’s call for payment (as described above) and the notification to the National Debt Register.
KRD – company notification
If the debtor is a company, the notification process remains unchanged in principle – only two differences appear:
- The minimum amount of unpaid receivables is PLN 500 for companies;
- The receivable must be due for at least 60 days.
National Debt Register – reports
Generating a report in the National Debt Register is a good way to make sure that our or our company’s information is not inadvertently included. This is especially important if you plan to get a loan or credit in the near future. We can be sure that even if we ourselves do not take advantage of the opportunities offered by the national debtor registry, our potential lender will certainly do so.
It is a good idea to make sure that someone has reported an entry in the KRD about us before you decide to start the credit procedure – you will be able to react accordingly to increase your chances of getting the funds you need.
Important!
Sometimes individuals or companies end up with entries in the KRD reporting allegedly unpaid debts, even though they have been paying all debts on time. This may involve extortionate credit on our data – this is also why it’s a good idea to opt for a one-time check with KRD, for example.
This is especially important, as the number of attempted loan scams is increasing every year. For example, in the first half of 2020, more than 3,000 such attempts were made (800 more than a year earlier) for a total of PLN 125 million.
How to check the KRD?
First, we visit the krd.co.uk website and then choose the appropriate offer – for consumers or for business.
KRD – consumer checking
Clicking on the “Consumer Offer” button will take the user to a sub-page where information about KRD’s partnership with the Protect PESEL initiative takes center stage.
Attention!
It’s easy to get discouraged at this step, as clicking on the “Learn more” button, which is immediately visible, will take you to the chronpesel.co.uk website, where you will be told that you have to pay a not inconsiderable subscription fee to use the service to check yourself in KRD. However, there is a way to check yourself in the KRD for free.
Important!
Any user of the KRD can check information about themselves for free once every 6 months. In addition, also once every 6 months, it can check the list of entities that have made inquiries about you to the KRD.
To do so, follow these few steps:
- Scroll down the page a bit and select the option that interests you: “Check yourself in KRD BIG SA” or “Check the register of inquiries about yourself in KRD BIG SA”.
- You will then find yourself on a page where the “Protect PESEL” initiative is once again advertised. Scroll almost to the bottom of the page until you see a blue banner titled “Information about the statutory check of yourself and the query register 1 time every 6 months.”
- Click on the underlined words “transaction service”, which will allow you to set up an account with KRD in three steps.
Important!
If we create a new account with the National Debt Register, we will have to provide personal information and then verify it with a transfer of PLN 1 (the fastest way) or a scan of an ID card (in this case, the procedure may take longer because the document must be processed manually, while the transfer verifies automatically).
- Log in to your new account and click “Check my PESEL” – the system will generate a report, which you will find in the “Reports” tab of your account from now on.
KRD – checking companies
If you select the “Business Offer” option from the KRD home page, you can take advantage of various types of solutions prepared specifically for business customers. It is worth paying special attention to the items: adding the debtor to the KRD, checking companies, monitoring companies and the security of your business.
- Adding a debtor is an option that we should select if our counterparty is late with payment of a receivable, and this receivable meets all the conditions (basis, amount, due date, etc.). – according to the list of circumstances we posted earlier in the article). From the creditor’s point of view, putting the debtor’s information in the KRD has only advantages – it is a great way to encourage the counterparty to settle the debt. If he fails to do so, he will have difficulty obtaining a loan, credit or lease.
Important!
If the debt is paid, the creditor is required to report the fact to the KRD and file a request to remove the debt information from the registry within 14 days of payment. If the counterparty has not paid the entire amount due, but only the agreed portion, also in this case it is necessary to report an update of the data, so that the KRD contains information that corresponds to the facts.
- Checking companies will be of interest to those entrepreneurs who are preparing to establish long-term cooperation or to invest in a solution proposed by a contractor. Checking companies in the KRD allows you to learn about their financial situation and minimize the risk of making the wrong decision. All you need to do is still generate a report on the customer before signing the contract, providing the company’s TIN.
- Monitoring companies will be useful if you work with regular customers. The enabled monitoring service will inform us when information about the debt of one of our customers is received in the KRD, but also when the data is updated or deleted.
- Security of your company is an option for entrepreneurs who want to know who is downloading KRD data on them and when, and also want to receive a notification in case it is their data that has been added to the KRD. The KRD report contains information on inquiries over the past 12 months.
How long is an entry in the National Debt Register?
It’s no secret that the best way to remove an entry from the KRD is to pay off any debts incurred. However, if this is not done, remember that an entry on a debtor in the KRD can only be removed within 3 years of the last update of data, no later than 10 years from the date the creditor reports the entry in the KRD.
