Tuesday 02 June 2020

Mobile phone ‘loans’ to be listed by credit rating agency

Photo: Depositphotos.com

Photo: Depositphotos.com

People who ‘buy’ a telephone as part of a mobile phone subscription face having the debt added to their listing at the Dutch credit registration agency BKR.

The BKR registers loans agreed with banks and other loan providers so that companies can check up on customer credit-worthiness.

Now, the financial services sector regulator AFM has decided to treat the part of a phone subscription which covers the phone itself as a debt, if higher than €250.

This means the ‘loan’ will be included in the BKR register from May 1. Subscribers will also have to give proof of their income to mobile phone firms when taking out a subscription.

Since December 1, all credit greater than €250 which has been used for more than one month has been included in the register. This includes shop cards and credit cards, as well as short overdrafts.

Banks and other cred providers use the BKR to check if clients are financially able to take on major commitments such as a large mortgage or other loan.

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