In this article we will tell you how the system of so-called “citizens’ credit histories” functions in Italy. Italian banks are designed to grant loans and for this purpose they have to check and find out the credibility of the creditor.

This is why there are public and private SIC (Societa Informazioni creditizie) Risk Centres. In Italy there are a dozen companies that collect information on the credit histories of citizens. The best known are CRIF, EXSPERIAN and CTC.

Their task is to assess creditworthiness and limit the risk in granting new loans to those who cannot repay them. Based on this pattern, the information in the system is divided into positive and negative, and the archive consists of more than three quarters of the names of citizens who regularly repay the loan.

For example, the data provided in EURISC, a database managed by CRIF , may be used by credit institutions and individuals solely for purposes related to the protection of credit and related risks and for purposes related to the assessment of the creditworthiness of individuals and legal entities.

Using the CRIF company as an example, let’s understand how this credit information system functions in Italy.

Let’s start by saying that CRIF is a private company specialising in credit information systems (SIC). CRIF was founded in 1988 in Bologna. Today, CRIF manages the most important Italian credit information system, called EURISC.

How EURISC works in CRIF

Whenever you apply for a loan from a bank or any other lending organisation, credit information systems (SIC) collect all the current and previous loan data pertaining to credit histories entered into by banking institutions and financial institutions directly with you.

The EURIC archive consists of a large database of both positive and negative information on the vast majority of individuals who regularly pay loan instalments. The data contained in EURISC is requested and checked by banks, which use this information to find out their client’s previous situation on previous loans, this is required for banks to assess the credit rating of their potential client.

Access to CRIF data

A client who is registered in the CRIF database at EURISC can request information about themselves at any time.

How it works – recording and storing data

Credit data is transferred to the SIC by a bank or other financial company only in the following cases:

• for individuals, if the borrower has requested a loan and has received confirmation and consented to the processing of personal data under the SIC, or if the loan has irregularities in its repayment terms, even if the individual has not signed the consent to the processing of personal data under the SIC;
• for companies, if the borrower has signed an information letter about the processing of his/her data by the credit organisation.

Data logging on the SIC.

If you are an individual and have consented to the processing of your personal data, the transfer of your data to EURISC may take place in the following cases:

• when you apply for a new loan, if a bank or finance company intends to check your details to assess your credit rating;
• When your funding request is accepted and granted;
• at update stages, usually monthly, with current data on loan repayment progress;
• if you have not consented to the processing of your personal data, your data may still be transferred to EURISC by the credit organisation when there is a delay in the repayment of your credit history (so-called “negative data” appears).

Data retention period and rules for automatic cancellation of negative information in EURISC

SIGNAL TYPE IN EURISC	AUTOMATIC REMOVAL
Funding during the preliminary review	6 months from the date of the request
Credit requests rejected	After 1 month from the date of refusal
Loans are repaid regularly	After 36 months from the loan repayment date
Delays related to 1 or 2 instalments (or monthly instalments)	12 months after the communication, provided that payments have always been paid on time during the 12-month period

Delay of 3 or more instalments (or monthly instalments)	24 months after notification, provided that payments have been made on time for 24 months
Loans outstanding	36 months from the expected maturity date or from the date on which the last update is provided from the credit institution
Source: CRIF

From the information above we can see that the credit information system in Italy has been in operation for more than 30 years. The information is automatically deleted after a maximum of 36 months from the date of repayment of the loan. And what is very important: the data about you can be obtained either by you personally or by the financial institution granting you the loan, without assessing your identity.

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