Bad credit record

Failure to pay a debt or bill may lead to a payment default entry in your credit record.

‍A payment default entry does not come as a surprise, as it is preceded by payment reminders and demands for payment. You will be separately notified of your first payment default entry by letter.

A payment default entry may result from a debt judgment issued at a district court, enforcement proceedings or the submission of a debt restructuring application to a district court. A payment default entry can be made around two months after the due date at the earliest. There are different payment default entries, with different effective periods.

• A payment default entry may make it more difficult for you to obtain housing, a telephone subscription or insurance, for example. A payment default entry may prevent you from getting a new job if it involves financial responsibilities.
  
• A payment default entry may be scary. However, paying for invoices and debts using a loan should be considered carefully, or often even avoided, because a debt cycle often makes financial problems worse.
  
• If you pay for your telephone subscription, home insurance and rent on time, any payment default entry will not affect any agreements signed before the entry.
  
• If you are having trouble with your payments, contact the creditors as soon as possible to agree upon payment arrangements. Make sure that your income covers your expenses to stop the debt cycle.

Read more about the debt collection process.

For more information on payment default entries, please see the website of the Finnish Competition and Consumer Authority.

Removal of payment default entries

MaksuhäiriöThe period of validity of payment default entries changed on 1 December 2022. In future, a payment default entry will be removed within one month of the date on which the controller was informed of the payment of the debt.

When you have paid off a debt, it is your responsibility to make sure that notice of the payment will be entered in your credit record (REF entry). In other words, a REF entry will not be entered in the credit information register automatically. A REF entry in the credit record means that the debt has been paid off.

Please note that the credit information register is maintained by two companies in Finland. Notice of the payment of a debt must be submitted to both of these controllers.

Once you have paid off a debt, you can obtain a REF entry in the credit information register in one of the following ways:

• Request the creditor to submit a notification of the payment of the debt to the credit information register. Please note that the creditor may charge a fee for submitting the notification.
• Request the enforcement authorities to submit a notification of the payment of the debt to the credit information register. The enforcement authorities may submit a notification concerning only those payment default entries that have been made due to enforcement action (code UMV or UMS).
• You can submit your request for having your payment default entry erased to National Enforcement Authority Finland’s Electronic service . Make the request in the debtor’s service in the section Messages with the topic Credit information. You can also send your request by email ulosotto.uo(at)oikeus.fi. The message must include the name and date of birth of the person. The payment default entry will be erased once the notification has been processed by the credit reference agency.
• You can obtain a ‘Debtor’s enforcement matters’ receipt detailing the payment of your debt from the e-services or customer service of the National Enforcement Authority Finland. You should then submit the receipt to the controllers (Suomen Asiakastieto and Bisnode).
• Request a receipt of the payment of the debt from the creditor. The receipt must contain the following information: name of the creditor and debtor, amount paid, date of payment, information identifying the debt (for example, case number), code of payment default and date of registration. This information is needed so that the controller knows which payment default entry the payment pertains to.

For more information, please visit the controllers’ websites or contact a controller to receive further instructions.

When a debt expires permanently, the payment default entry is removed on the request of the debtor or the creditor. This information is not automatically transmitted to the credit information register.

Most typical payment default entries and their validity

• YVK, default judgment in a debt matter. Period of validity: three (3) years.
• SVK, judgment issued in a debt matter. Period of validity: three (3) years.
• UMV, lack of means or other impediment established in enforcement proceedings. Period of validity: three (3) years.
• UMS, lack of means or other impediment established in enforcement proceedings in cases where the debtor is not found to have assets to cover the debt in limited enforcement. Period of validity: three (3) years. This information is removed from the register immediately when the debt is paid off and information on the payment is submitted to the controller.
• UMP, a payment default entry made due to enforcement action in cases where the debtor’s pay, pension or other recurring income has been garnished or a payment schedule set up instead of garnishment has been in force for a minimum of 18 months over the past two years (lengthy enforcement). Period of validity: three (3) years. The entry is removed once the enforcement authorities, on the request of the debtor, notify the controller that lengthy enforcement has ended.
• OLK, a self-imposed credit ban, not a payment default. Period of validity: two (2) years.