Non-payment and bad credit record
A non-payment record is not the end of the world. You get a non-payment record if you are unable to pay your bills or debts.
A non-payment record, also called bad credit record or loss of credit, may cause varying challenges in life. Having a non-payment record is more common than many know, and it does not necessarily indicate the person’s ability to manage money. If you have a non-payment record, it may affect your ability to receive a credit card, buy things on hire purchase, or receive a bank loan. It may also be more difficult to get an electricity agreement or a phone subscription. In the worst case, getting a rental apartment will be more difficult.
Leaving your bills unpaid may result in a non-payment record. However, a non-payment record is never entered suddenly. If you forget to pay a bill on its first due date, you will not yet get a non-payment record. Depending on the bill and its sender, the process of non-payment record takes time. However, it is worth it to go through your due bills as soon as possible.
The original sender will send payment reminders. If you do not pay these, either, the original sender will transfer the unpaid bill to be collected by a collection agency. At this point, you still have the chance to pay the bill without getting a non-payment record.
Usually, a non-payment record is entered when the creditor seeks a payment order for the debt and it is being collected through enforcement. The district court or the enforcement authority will enter the non-payment record into the credit information register. In short, a non-payment record is a note of debt entered into the credit information register.
Basis for non-payment record
- the debt is issued by a court
- the enforcement authority finds that the debtor is without means
- the enforcement has continued for at least 1.5 years over the course of two years
- a consumer loan or instant loan has been overdue for over 60 days, and the creditor has informed the credit information register of the debt
A non-payment record remains in the register for 2 to 4 years, depending on the situation.
For an underage person aged 15–18, only the enforcement authority’s note that the person is without means can be recorded in the register. A person is determined to be without means if the debtor does not have income or assets that can be subjected to enforcement.
Debt collection and enforcement
As a last resort, a creditor may collect their debt through enforcement if you do not pay your debt voluntarily based on the payment reminders or demands. Enforcement is forced collection of debt, but it is based on law. However, you can still pay your debt voluntarily even under enforcement.
In some situations, you can get rid of debt through enforcement. If you are insolvent, the enforcement authority will inform the creditors of this reliably, and unnecessary collection attempts will stop. Enforcement is one way of solving problems with debt either permanently or temporarily.
Debts do not remain under enforcement forever. You can get them out of enforcement either through debt restructuring, or their collection will end once they expire at some point.
The enforcement authority will not enter the debt into the credit information register, meaning that you will not get a non-payment record if you pay off the debt. If a debt, such as a health care fee, goes to enforcement immediately, you will not get a non-payment record at all. However, if a payment order has been requested from a court, a non-payment record has already been entered. This record will remain in effect even if you pay off the entire debt through enforcement.
Voit selvittää ulosottoasiasi tilaamalla velallisen ulosottoasiat -tulosteen. Tuloste sisältää tiedot velallisen ulosottoasioinnista, maksuista ja velalliseen kohdistuneista toimenpiteistä neljän vuoden ajalta.
You can see your enforcement affairs by requesting a printout of ‘debtor’s enforcement affairs.’ The printout includes information about the debtor’s enforcement affairs, payments, and measures they have been subjected to in the last four years.