ALL YOU NEED TO KNOW ABOUT KRD
KRD is short for Krajowy Rejestr Długów (National Debt Register). KRD BIG S.A. is an Economic Information Bureau that has been in operation since 2003 under the Act on Disclosure of Economic Information and Exchange of Economic Data dated 9 April 2010. KRD collects and discloses data on the financial standing of companies and consumers. This data includes information on outstanding obligations and timely fulfillment of obligations.
Who may be registered in the KRD?
Entries into the KRD may be done by entrepreneurs, municipalities, organizational units and individuals with an enforceable title. Information about a debtor’s liabilities may only be submitted to KRD, if:
- liabilities arose under a particular legal relationship,
- the liability amount exceeds PLN 200 and has been outstanding for at least 60 days,
- a debtor received a call for payment with the warning that their data will be submitted to the KRD, along with providing their data and physical address to the KRD,
- at least one month has passed from sending a call for payment,
- no more than 10 years have passed from the date the liabilities arose or a claim was asserted,
- liabilities have been established by means of an enforceable title, at least two weeks have passed from sending a letter to the debtor with a warning that their data will be submitted to the KRD and the creditor submitted the confirmation of an enforceable title to KRD.
How to be removed from the KRD?
Data may be removed from the KRD by way of complaint proceedings. Before an entry is registered, a debtor may lodge an objection with the creditor, and once the entry is registered – to the KRD. A request for removal from the register may be submitted if the creditor provided the KRD with incorrect, outdated or incomplete debt information. An objection should be supported by appropriate documentation proving its validity. KRD has 30 days to process the objection. After this time, commercial information may be updated, the entry may be removed from the KRD or disclosure of information may be suspended if further investigation is necessary. The debtor may also defend their personal rights in civil proceedings.
The entry may also be removed from the KRD as a result of the previous creditor assigning the debt. If the debt assignee does not request the KRD to update the information, the entry will be removed from the database. Removal from the KRD takes place after three years from the last update and, in the case of consumers, no later than after 10 years after the debt becomes due.
Do not forget that in certain circumstances, a creditor is required to remove or update data submitted to the KRD. These include a debt being repaid in full or in part, the expiry of the obligation to pay or the confirmation that the debt is non-existent or the information submitted is incorrect. In such a situation the creditor has 14 days to request the data to be updated. Otherwise, they may receive a fine up to PLN 30,000.