Payment notes are an important tool for banks and creditors when considering the ability to pay with people applying for credit as a loan or credit card. If you have payment notes, you may have problems, but it is not a permanent note and will disappear after a few years. The best thing is to avoid remarks, but if the accident first occurs, the most important thing is to solve the problem as soon as possible so that you are not considered ineligible for payment. Hopefully it will help to avoid payment remarks if you get a thorough understanding of the entire process that results in a comment so that is the theme of this article.
How payment notes occur
If you do not pay for yourself, you can be registered with payment notes at the credit reporting agencies. A payment note means that you are considered a poor payer and this can affect whether you get a loan, insurance or mobile phone subscription, for example. The time of registration of payment note depends on whether you who owe money is a private person or an enterprise registered in the Brønnøysund Register Center. For individuals, the complaint will be registered 30 days after a settlement complaint, or other legal action. In the case of enterprises, the note is registered 30 days after the payment request has been sent out. For claims where you disagree with payment, or disputed claims, you should not register with payment remarks during the process. It assumes that you have notified the creditor or collection company of the dispute. Nor can a disputed case be sent to debt collection. In order for a payment note to be registered on you, the debt collection agency must have contacted the Conciliation Council and / or the namesake. One month after that, the credit reporting agencies can register the information in their records.
Failure to pay by the payment deadline will result in collection costs in the form of late interest. As of January 1, 2015, it is 9.25% of the requirement. Pursuant to the Debt Collection Act and the Debt Collection Regulations, the creditor may use a debt collection agency to collect money if you do not pay your obligations. The creditor can also choose to file the claim himself. If the claim against you goes to debt collection, you must pay debt collection fees in addition to what you owe before. This is to cover the costs the creditor or collection agency has incurred in the recovery. It is worth noting that there are rules the creditor or debt collection agency must follow when collecting the claim against you, and if these rules are not followed, your obligation to pay the debt collection fee will be void in whole or in part. If a debt collection has been made against you, you should familiarize yourself with the regulations and if you believe that the debt collector has not acted in accordance with good debt collection practices, you can complain to the debt collection committee. The Consumer Council gives you advice and help, on its website, in drafting a complaint.
Before a debt recovery measure can be implemented, you must receive written notice from either the debt collection agency or creditor that the debt collection will be implemented, and you will be given a payment period of 14 days. If you are unable to pay, or disagree with the claim, it is important that you contact the debt collection agency or creditor as soon as possible.
The problem with payment remarks
Payment notes prevent you from taking up credit. Unfortunately, you must expect credit card rejection, bank account, home rental refusal, purchase of credit goods and services, telephone subscription, power supply account, and the like. Also, if you apply for a position, especially if the position has a certain responsibility, then your future employer will often check your remarks and possibly reject your application. In other words, paying notes can ruin a lot and the consequences can again make it even harder for you to pay what you owe.
When will the payment note be deleted?
There are basic rules for payment remarks, including that they should be deleted either upon repayment or over time. It is best to pay your debt if you can, then the payment note will be deleted within a month. If you are unable to meet the requirements, the note will be deleted after 4 years. Only when the payment note is gone will you be credit worthy again and you can apply for credit without obstructing notes. In some cases, it may be inertia, error or overlook that will not erase payment remarks against you. Therefore, if you have had payment problems and want to be sure that all your past history has been deleted, you can request payment reminders about yourself. This can be obtained free of charge from a credit reporting agency or debt collection agency.
As you have now read, payment notes can become a real headache and turn everything upside down. You will be banned from all types of credit and in the worst case scenario it may take up to 4 years before you are considered creditworthy again. If you have payment problems, you should in any case try to resolve this as soon as possible and do not bury the problems and hope they disappear. Think long term when you commit to subscriptions, insurance and anything else that you might have trouble paying. If you are leading the war and paying bills on time then you can avoid being considered a poor payer in the future.