Preventing non-payments is one of the main concerns for the self-employed, SMEs and large companies. Among the measures to achieve this are requesting advances, digitizing sales control and establishing penalty clauses in the contract. A fourth alternative against defaults is to check the customer's credit history by looking for her name in a file of defaulters.
It is estimated that some four million Spaniards have their names listed in at least one of the different files of defaulters that exist in the country. Many of them are unaware of the procedure to get off these blacklists, and some don't even know they are on them. Of course, nobody wants to be part of a delinquent file, but the data registered there can become a very useful tool to prevent defaults and even recover debts.
A delinquent file is a record in which the data of all those persons, physical or legal, who have incurred in some type of non-payment are recorded. To fall into a delinquent file, it is not necessary to owe a large amount of money or have many creditors. A person can appear on one of these dreaded lists both with a debt of 20 euros and with one of 20,000.
In Spain, files on defaulters are regulated by Organic Law 15/1999 on the Protection of Personal Data. This is so because the patrimonial and financial data of a person are considered sensitive information that must be protected. Therefore, although any person can report another on a list of delinquents, certain conditions must first be met. For example, the debt must be overdue for at least four months and, before making the report, the creditor must have requested payment of the debt by certified mail.
These records can only include the data for the prevention of delinquency that the Spanish Agency for Data Protection (AEPD) authorizes in this regard. In addition to the full name of the debtor, whoever consults will be able to see details such as the amount and type of outstanding debts, as well as their amount and age. All information related to the debt is provided by the creditors in order to exert social and financial pressure on the debtor. These reports are submitted by large companies, SMEs, freelancers and individuals.
Defaulters files represent a very useful tool to prevent non-payment of invoices and recover outstanding debts. In Spain, there are different lists of defaulters that are consulted very often by bank offices, SMEs, consumer finance companies, insurance companies, large companies, the self-employed and individuals. They do it to know the credit history of their clients and determine if it is convenient to grant them some type of credit or not. In this way, they reduce the probability of entering into a financial relationship with people who carry debts and who, therefore, will hardly be able to face new commitments.
The National Association of Financial Credit Establishments (ASNEF) is considered the largest list of defaulters in all of Spain. This file is managed by the company Equifax Ibérica and records the data of individuals listed as debtors. For its part, the Register of Unpaid Acceptances (RAI) contains information relating to debts of more than 300 euros exclusively from legal entities. Both registries are regularly consulted by financial and credit companies to find out the solvency of companies or self-employed persons who request cards, credits, etc.
Another file for defaulters is the Risk Information Center of the Bank of Spain (CIRBE). This registry gathers the financial information of individuals and legal entities, and facilitates access to the credit situation of customers. On the other hand, the ICIRED (acronym for Collective Investments in the Network) is an online list of defaulters that is easy for anyone to consult. This web portal also offers different functions to creditors, such as sending a payment request to the debtor.
Those who are dedicated to renting flats and homes run the risk of assigning the property to delinquent tenants that become a headache. Fortunately, there is a Delinquent Tenant File (FIM) dedicated exclusively to compiling economic data and the delinquency history of former tenants. This information is provided by individuals, real estate agents, landlords, insurers and court rulings.
Many landlords consult this database of real estate delinquencies to learn the credit history of their future tenants. In this way, they use the lists of delinquents as an effective tool to rent with peace of mind and prevent defaults. Regardless of the type of company or business, checking the solvency history of each client through a delinquent file reduces the risk of suffering monetary losses.
