Credit note

A credit remark is sometimes also called a payment remark and means that a customer has been registered as a bad payer, either in the company's own systems or with a debt register.

If a private individual or company is registered in Experian's RKI or Debtor List, for example, this registration is called a credit note.

Having a credit report can have a big impact on an individual.

How do you issue a credit note?

If your company has a financial system or ERP solution, it is often possible to create an internal credit note in the system.

An internal credit note enables sales and accounting to see the information and set their trading and credit terms accordingly. For example, a credit note can trigger a shorter credit period, a lower credit amount or even a requirement for cash payment upon pick-up or delivery of the goods.

An internal credit note is often based on an internal history with the customer; late payments or even invoices that have never been paid and therefore sent to debt collection.

External credit reports are made with a debt register such as Experian's RKI or Debitorlisten. These have the same purpose as internal credit reports, but the company does not "risk" having to obtain an internal history with the customer first.

In order to submit a credit note to a debt register such as RKI or Debitorlisten, you often need to be a customer of the respective companies.

In Denmark, it is often lawyers or debt collection companies that report a credit note on behalf of a creditor.

What is the purpose of a credit report?

The purpose of a credit note, whether internal or external, is to protect the company from bad payers.

The credit note enables the company to take precautionary measures, for example by demanding cash payment, reducing the credit or reducing the credit period. In Denmark, approximately 200,000 private individuals and companies have a credit note with a debt register.

What are the consequences of having a credit report?

The consequences for an individual or business if a credit report is registered can be significant.

Often, the registrant will experience a lower credit score at the bank, which can mean, for example, that the bank rejects the possibility of loans, even down to small amounts.

Companies can also use the information to adjust their credit and payment policies accordingly - and, for example, demand cash payment if they find that a customer is registered with a credit note.

When can you register a credit report?

It is a requirement that the creditor or creditor's debt collection company has sent at least three reminders - and stated in the last reminder that you are registered in a debt register.

However, if it is a public authority that registers a credit note, different rules apply - for example, there must be a period of 4 weeks from notification of registration until it can be made.

How long do you have a credit report?

If you are registered as a bad payer and thus have a credit note with a debt register, you are generally registered for 5 years.

If you choose to pay your debt to the creditor or the creditor's debt collection company, they will inform the debt register - and immediately delete the credit note.

Does a credit report expire?

Yes, a credit note expires after 5 years. However, please note that the debt does not necessarily expire - and the creditor may still have a claim against you. So you still owe money to the creditor, even if the credit note expires.

You cannot be registered as a bad payer for an outdated claim.