In the US, consumers can freeze their credit worthiness records and receive a code. When the records are frozen, the only orgs that can access the records are those already doing business with the consumer. If a consumer wants to open up a new account, they share the code with the prospective creditor who uses it to see the credit report.
So the question is, how are access controls on credit histories done in various EU nations? Do any use unlock codes like the US, or is it all trust based?
I don’t mean to imply anything about scoring, but certainly there must be some kind of mechanism to expose bad debtors to lenders.
In Belgium, there are no private credit bureaus but there is a central bank. Belgian banks are obligated to report loan defaults and cash transactions to the central bank, and creditors are obligated to check the central bank’s records. Consumers have no way to control creditors access to their records in the central bank. It seems to be trust based. The central bank apparently trusts that a creditor is checking a consumer’s file in connection with an application for credit by the consumer.
There’s definitely the bureau kredietregistratie in the Netherlands.
As far as I know you can’t “freeze” it like you describe, though you can request information on what is stored about you and who accessed it. It also costs money to run a check, and credit history doesn’t go back more than five years, doesn’t include your mortgage unless you missed paying that for longer than three months, and doesn’t include debts less than €250.
Edit: also just checked, but the information is only shared with parties that share credit history with the BKR. I think that means that it’s basically frozen by default, i.e. only parties that are actually about to do business with you can access it, but I’m not entirely sure. They’ll at least have to do some kind of business, i.e. not be a generic data broker.
Over here it’s not necessary for a person to restrict access because access to the credit records is restricted to banks, allowed only when a bank is asked by you explicitly for a credit, and all loans must be done only by banks. So it’s basically impossible for anybody to access it outside very specific circumstances initiated by you.