In Germany, every citizen who is going to open a new bank account or take a loan is usually asked to sign a document confirming his consent to the study of his credit history. And although this is a purely voluntary matter, refusals are rare, since it will be much more difficult for a potential client to resolve financial issues in this case. German banks often simply exchange information about the creditworthiness of a particular citizen. However, the SCHUFA credit history contains the most complete information about the incorrect payment behavior of consumers.
What is SCHUFA
Schufa is a privately held commercial agency dedicated to protecting credit institutions, merchants and other service providers from the risk of losing money. Simply put, this organization collects information about all loans ever received by a person, purchases by him on credit of inventory, as well as delays in repayment of debts, if any.
The term Schufa is an abbreviation for Schutzgemeinschaft für allgemeine Kreditsicherung. It can be translated into Russian as follows: the society for the protection of the quality of loans.
The Shufa database (this name of the Schufa organization can often be found on Russian-language sites) contains information about 66.3 million individuals living in Germany, as well as 4.2 million companies and firms registered in this country.
How SCHUFA receives information
This institution does not collect information on its own. Information is transmitted by 9,000 partners, including online stores, telecommunications firms, leasing companies and, of course, banks. This department knows:
- the dates of opening current and credit accounts with financial institutions;
- personal data of any person who took a loan from a German bank;
- information about credit cards;
- contract numbers;
- payment of utility bills.
But Schufa is also a source of information about the business life of a citizen who applies for a financial service. It stores both positive and negative information about the applicant, for example, about prosecution or failure to pay even one invoice.
Data can be obtained not only from partners, but also from official publications, for example, from a database of court decisions. But this procedure is complicated by the fact that it exists only at the land level, and there is no single base. However, it is not necessary to obtain consent to the processing of personal information.
In general, Schufa's business model is clearly based on reciprocity, that is, it stipulates that the company's partners are obliged to inform about data updates. After all, any dossier in our fast-paced time is quickly becoming obsolete. For this reason, misunderstandings often arise.
For example, a migrant moved from a hotel to a rented apartment, but forgot to notify the telephone company. She sent an invoice to the old address, which, of course, no one paid, and as a result - a negative entry. After a few weeks, the situation cleared up and the bill was paid, but Schufa will "remember" this. True, not permanently, but for a certain period. Its duration, depending on the data category, is shown in the following table:
| Information type | When removed |
|---|---|
| Undeniably incorrect data | Can be removed at the request of a citizen |
| Sureties for Debts of Other Persons | On payment of arrears |
| Availability of an up-to-date account in the online store | 3 years |
| Information from the departmental court (if bankruptcy was filed) | 36 months. If you send a court decision on the fact of payment of debts, then the period can be reduced |
| Violation of the terms of the agreement, for example, the payment was not made | 36 months plus the period until December 31 of the last year. If the debt has not been repaid, then it is already 4 years plus the same time interval. In the event of litigation, the information may be kept longer |
| Applications of other companies for information on the creditworthiness of a citizen | 1 year after request |
| Availability of a credit card or current account | Immediately after the account is closed |
| Request for loan conditions | 1 year after request |
| Loan request | 1 year after request |
| Debt information | 36 months after full repayment |
How to get or change information in SCHUFA
A person living in Germany has the right once a year on a completely legal basis to receive data about himself free of charge. To do this, he must fill out, sign and send a special form posted on the web resource of this organization.
If you find incorrect information, you can send a letter asking for their removal. The application must be accompanied by papers proving the incorrectness of the data.
In case of a positive decision, the citizen's certificate (Auskunft Schufa) will contain only correct information, which will improve his credit rating. If necessary, in 2021, he can request this document again. But then you have to pay 18.50 euros. But a certificate containing detailed information will cost € 25.95.
This document is usually sent to a citizen by mail. However, having visited one of the branches of the easyCredit bank, he can receive a certificate on the spot.
The main types of lending in Germany
Schufa recently released data on loans in Germany. According to them, about 15% of people living in Germany buy on credit such expensive things as, for example, cars, furniture, household appliances, gadgets.
Another popular type of loan in Germany is mortgage. Mortgage conditions in Germany are very favorable and are characterized by low interest rates. But, as in Russia, the borrower will have to make an initial payment.
Find out more in the articles "Consumer loans in Germany" and "Mortgages in Germany".
Conclusion
Summing up, let's say that a borrower in Germany who is included in the list of unreliable, formed by the Schufa organization, will need to get used to certain inconveniences. For example, he will have to remember how to use a pay phone because mobile and landline telephone providers will refuse to provide their services. But this is only half the trouble.
A grief borrower will need to forget for at least 3 years about buying a new apartment on a mortgage, consumer loans and credit cards. In order to prevent the occurrence of such troubles, you should promptly resolve the issue with the bank.
