Many Danes and people residing in Denmark have problems paying their bills on time. This is shown in a semi-annual report by Experian, which owns and operates the RKI registry.
As of the end of June 2023, 173,000 people over the age of 18 were registered with the RKI, an increase of about 2,100 people since the beginning of the year.
The age group with the largest number of people registered with RKI is 31 - 40 years old.
What is RKI?
RKI (Ribers Kredit Information) is a database of debtors (similar to the Polish KRD- National Debt Register).
Briefly about RKI
The RKI registry is owned by the credit information company Experian. RKI is used by companies, public authorities and the financial sector to assess the creditworthiness of a customer, which can be either an individual or a company.
If you are registered with RKI, it is almost impossible to get a loan loan or even a phone subscription.
If companies find out that you are registered with RKI, they will often require payment in advance or cash. So you can still buy consumer goods such as a car and travel, it just requires payment in advance.
How can you hit the RKI database?
If you have not paid your bills on time and have received a minimum of 3 written calls for payment ("rykker"). Each of these summons is sent a minimum of 10 days apart. The last third summons includes information about the possibility of reporting to the RKI. The end result is that your creditors, i.e. those to whom you have not paid your bills (or, for example, the collection companies that represent them, the so-called Inkassovirksomhed ) can eventually register you with the RKI.
However, creditors must be clients of the Experian RKI registry, as are most Danish companies, public authorities and the financial sector. This also means that creditors who are not clients of Experian RKI registries cannot threaten to send you to the RKI, however, these are usually smaller companies.
Companies can register you with the RKI if you owe a minimum of 200 kr, for insurance companies, money lenders and mortgage lenders there is a minimum of 1000 kr, while for public institutions it is at least DKK 7500.
Individuals cannot register another person with RKI. You must also be at least 18 years old to register with RKI.
Are you registered with the RKI?
RKI will always inform you usually by letter if you are registered as a so-called „bad payer”.
Check here if you are registered with RKI -> https://www.dininfo.dk/
How to be deleted from the RKI register ?
If you pay the debt, you will be removed from the register. When paying off a debt, always be sure to get a receipt and keep it so that you can document the payment of the debt later. Remember to also ask the creditor or collection company to cross you off the RKI - that is their job.
If you do not pay your debt, you will be removed from the register after 5 years. Remember that even if you are removed from the RKI registry after 5 years, your debt will not be erased.
Open and closed register
There is both a closed register and an open register at RKI. If you have a debt of DKK 200 to 1,000, you will be listed in the closed register, where companies and authorities cannot search for you.
If the amount exceeds DKK 1,000, you will instead be entered in the open register will be registered as a bad payer and visible in searches.
Can I take out a loan even though I am registered with RKI?
The purpose of the RKI registry is to allow companies to assess the creditworthiness of potential customers before entering into a contract with them. When a company encounters a „bad payer,” it is almost impossible for a customer to borrow moneyądze or bought on installments.
However, there are companies that offer quick loans and advertise that you can borrow money even while in RKI. However, taking out such a loan is a very bad idea, as it usually involves extremely high interest rates and questionable recovery methods. Such a loan causes you to owe much more money in a short period of time than you borrowed initially, so that you never get out of the RKI.
What if I don't agree to register with the RKI?
If you think there has been a mistake, you can object and send a complaint to the so-called Forbrugerservice. If you are not satisfied with the way the case or registration was handled, you can complain to the Data Protection Authority (Datatilsynet)
Bailiff's court
If you ignore summonses for payment, fail to pay your debt or fail to comply with an installment agreement to repay your debt, the creditor may refer the case to a bailiff court (fogedretten).
If you have been summoned to a bailiff court you are obliged to appear at the hearing. If you don't show up, you risk being led by the police - this applies whether you are at work, at home or, for example, crossing the border going/flying on vacation.
If you are unable to attend due to illness, you have the right not to attend, but the bailiff may request a medical certificate as documentation.
If you fill out the power of attorney contained in the summons to the meeting, you must send another person in your place, but it is important that the person who appears in your place knows the case and your financial situation.
What happens in the bailiff court?
The meeting at the bailiff's court usually takes place at the offices of your local district court and lasts no longer than 10-15 minutes. When you speak about your financial situation, you are speaking under what is known as criminal liability, and this means that you are obliged to tell the truth and disclose anything of value you have.
The bailiff court cannot withhold your salary or withdraw money from your account, but if you have items of value, such as a car or house, the bailiff court can require you to:
- He sold his property and paid the debt to the creditor,
- entered into an installment agreement with a creditor, who receives a lien on your property and can sell it if you fail to honor the repayment agreement.
A large debt can make it difficult to repay, but even if you owe money, you still have rights.
Among other things, you have the right to so-called „modest home maintenance,” which means that, for example, furniture and household appliances usually do not count as assets. In the same way, you have the right to dispose of a certain minimum amount. It is up to the bailiff's court to decide how much money you can recover for yourself if you owe money to a creditor.
Are you having difficulty repaying your debt? - OUR ADVICE
- If you are summoned to the bailiff's court, appear at the meeting and honor the agreements made at the meeting. Make sure you only commit to repayment plans that are realistic for you. Otherwise, you may go into further debt as a result of monition fees and collection costs.
- You may have heard it before: don't borrow money to pay off your debt. This is not only a temporary solution, but also costly and unsustainable.
- If your debt is unmanageable, you may want to see if you qualify to apply for debt restructuring and debt reduction or full debt relief.
- First of all, the advice is that you should make deals - whether it's with the government, your bank or your electricity supplier. For example, if you can't pay your rent, ask about an installment plan. It's far better to stand up and find a solution together with your creditors than to fight alone while your debt continues to grow in interest and reminder fees.
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