Reporting the debtor to the KRD

KRD is the National Debt Register (Krajowy Rejestr Długów), which collects, stores, and provides information on debtors, both individuals and businesses. It is used, among other things, by banks to verify potential borrowers.

The KRD debt register is one of the largest commercial information bureau in Poland. It contains a range of information on both individuals and consumers as well as on companies. According to that, the type of information held by KRD primarily depend on the entity to which the information applies. Importantly, the entry of information is made only at the request of the creditor.

Who and when can report a debtor to the KRD?

The rules of reporting a debtor to the KRD are regulated by the act and the registry’ internal regulations.

They determine, among other things, that in order for creditor to report a non-consumer debtor to the register, the following prerequisites must be fulfilled:

• The liability occurred in connection with a specific legal relationship, in particular due to a contract related to the performance of business activities.
• The total amount of due obligations of the non-consumer debtor to the creditor must be at least PLN 500,00 and have been due for at least 30 days.
• At least one month has passed since the creditor sent by registered mail or delivered to the debtor a notice of payment, which included a warning about the intention to transfer the data to the bureau, specifying the company and address of the bureau.

However, in order to provide information on consumer obligations, the liabilities should occur in particular due to consumer credit agreements and the amount of claims due must exceed PLN 200,00.

In order for a creditor to submit business information to the registry for disclosure, the creditor must conclude a business information contract with the bureau, in writing under sanction of invalidity. When entering into the agreement, the creditor must choose one of six service packages offered by the KRD. They operate, however, on monthly fee basis, to which an activation fee must be added. Aforementioned contract concluded with KRD can be terminated by either party with three months’ notice.

What are the consequences of being listed in the KRD?

The KRD register being a public register can often prove to be of the most painful consequences of reporting a debtor to the bureau. Such an entry can often result in reduction in the number of contractors willing to cooperate with the registered entity.

Another undoubtedly harsh consequence is that, as written earlier, banks rely on the register to verify potential borrowers. Consequently, in a situation where we appear in the KRD, we may face refusal to grant a loan or credit.

How long does debtor information appear in the KRD?

The bureau discloses information about the debtor’s obligations in the register on the creditor’s application no later than within 7 days of receiving the application. In the case of partial or complete fulfillment of a debtor’s obligation, the creditor is obliged to immediately, within 14 days at the latest, apply to the bureau with a request to update business information. In the event of complete satisfaction of the claim by the debtor, the information is removed from the register within 7 days of receipt of the creditor’s application.

If the creditor fails to update the debtor’s information, it is removed after 3 years, but no later than 10 years from the date the information was provided.

In addition, the debtor’s debt information is removed from the register when the contract between the creditor and KRD expires or is terminated.

If you need help with enforcing your debt, including reporting the debtor to the KRD, we encourage you to contact our lawyers.

Author Marcin Jóźwiak