Credit blacklisting
In real life, people need to fulfill various contractual obligations, such as paying utility bills, telephone bills, etc. The Spanish law allows that if a person does not pay, he or she may be put on a “credit blacklist”.
A credit blacklist is, as the name suggests, a database of all those who have failed to pay their obligations. You should be aware that there are many credit blacklists in Spain. These blacklists are private in nature and are not officially established by the government.
Note: Banks are in business and the decision to approve or not to approve a loan is their internal business decision when reviewing the loan. If a borrower is on the blacklist, most banks tend to refuse to approve the loan in order to avoid not getting their money back.
Common credit blacklists
There is no unified credit blacklist in Spain, private institutions can create their own. Some of the more common ones are currently available (usually banks also refer to these blacklists when approving loans):
-ASNEF-EQUIFAX
-EXPERIAN
-RAI
Above are the common credit blacklisting agencies. If people receive letters from these agencies, they are on the credit blacklist. The law requires that the person be notified by the blacklisted agency.
Why are you blacklisted?
There is only one reason for being blacklisted, and that is the non-payment of money owed. Debts can come from a variety of sources, such as utility bills, gas bills, phone bills, damages awarded in a lawsuit, failure to pay rent on time, etc.
Nevertheless, the law requires the debtor to warn the person in advance to repay the money. For example, before a telecommunications company blacklists a subscriber, it must state the amount owed as well as give the subscriber an opportunity to pay. Only if the user refuses to pay can he or she be blacklisted.
How about being banned from blacklisting?
The easiest way is to make a payment.
But what if I encounter arbitrary charges? For example, the phone company charges indiscriminately, or charges are more expensive than previously stated, banks charge indiscriminate fees, etc. These situations are very common in real life. Encounter this situation if people do nothing, then can only watch the blacklisted by these companies. If you are willing to pay, you may not be willing to do so, because after all, you think it is these companies that are charging you.
In fact, when it comes to this kind of situation, the law states that you can only be blacklisted because of an undisputed debt. If it is said that people are not convinced by the debt collection letters issued by these companies and feel that the charges are unreasonable, they can raise objections according to the industry. Bank disputes can go to the Central Bank of Spain to file a complaint, and other industries can also go to the consumer bureaus around the world to file a complaint or apply for arbitration to mediate the dispute. During the complaint or mediation of the dispute, the debt is a disputed debt, so that it will not be blacklisted. If it does prove afterwards that the user should pay, then it is not too late to pay then.
How do I cancel my credit blacklist?
- Payment.
- The blacklisting agency is obliged to automatically remove the debtor from the list when the debt has been due for 6 years.
