Over the span of three months the number of debts reported to the ERIF Register of Debtors went up by 30%

After the first half of 2011 there were close to 750 thousand records in the ERIF Register of Debtors (KRUK Group). The above means that over the span of three months the number of debts reported went up by more than 30%. The value of debts reported to the register exceeded PLN 3 billion (up by 20% on the end of March this year). The above data come from a report verified by KPMG, an independent audit company.

“Three months ago, when our register was first audited by KPMG we undertook to have it audited every quarter. And now we are keeping that promise," says Edyta Szymczak, President of the Board of the ERIF Register of Debtors.  “We want our clients to be certain that they are using a reliable database. We want them to see the changes in the number of data about debtors. Knowledge about the financial credibility of prospective customers or contracting parties is of key importance for every business person. That is why we think that the transparency of the credit information market is good for everyone, in particular for entities using credit information bureaus,” added ERIF CEO.

The report says that close to 711,000 (95%) from among 746,000 cases registered in the ERIF Register of Debtors are retail debts. The remaining 35,300 are corporate debts. The total value of consumer debt reported to ERIF at the end of Q2 2011 stood at PLN 2.9bn. It means an increase in this group by close to 12% on the end of March. In mid-2011, the debts of businesses reported to ERIF exceeded PLN 177 million, up by more than 4% on PLN 170 million reported three months earlier.

The prevailing type of retail debts reported to the ERIF Register of Debtors are unpaid obligations relating to banking products. However, the quantitative share of this type of consumer debt in the entire ERIF database is slightly lower than in the preceding quarter. Amounts owed in connection with loans, credits cards and bank accounts currently constitute close to 64% of all cases in terms of number and more than 73% in terms of value. The above means a drop by 6% and increase by 1% respectively on the results reported for Q1. An increase was noted in the number of telecommunication debts reported to ERIF (mainly mobile phone debts). Currently, such cases account for 27% of all debts, up by 3% on the figure three months ago. Among other consumer debts reported to ERIF are also child support debts and unpaid insurance obligations.

The previous KPMG report showed that the debts of businesses reported to the ERIF Register of Debtors were mainly connected with unpaid telecommunication bills. This time the situation is similar, but the percentage share of cases of the above type went down. In March they constituted 64% and their value was nearly a half of the value of all business debt reported to ERIF. At the end of June their share in terms of number went up to more than 77%, and in terms of value exceeded 58%. The above means an increase by 13% in terms of the number of cases and by 8% in terms of their value.

The increase in the number of data reported to the ERIF Register of Debtors is a result of growing interest of businesses and consumers in this type of services. More and more businesses want to use ERIF because they see that credit information bureaus are an effective tool motivating debtors to pay. The database of the ERIF Register of Debtors grows also as a result of receivables portfolios purchases made by the KRUK Group. Debtors who, despite being offered the possibility to resolve their debt problem amicably, avoid contact and payment of the debt, are consistently reported to ERIF.

Every person may check if their details have been reportd to the ERIF Register of Debtors. The easiest way to do it is via the InfoKonsument.pl site. After registering on www.infokonsument.pl, users may check if they have been reported as debtors and in connection with what debt and also whether their details have been downloaded from the ERIF Register of Debtors by any company.