The ZEK (Central Office for Credit Information) is the Swiss central office for credit information. It is linked to the credit activities of individuals and companies. It maintains a register in which certain institutions, such as banks, credit and leasing organizations, enter codes relating to the payment habits of the consumers who use their services.
Incorrect ZEK codes close the door to future credit or leasing applications within varying timeframes. When you become aware of these bad codes, it's often the result of a credit application that has unfortunately been turned down. These registrations, for example, are the result of :
- Several credit applications rejected
- Late payment of monthly installments
- Repayment problems requiring payment arrangements with the bank
- Unable to settle your debt in full, the bank has lost money
How to proceed
Only the financial institution that registered the code(s) can delete them. There is no other alternative, except to take direct action against the body that manages your data (ZEK). You can do this by invoking its obligation to keep data up to date and its duty to provide access to rectify data (LPD).
If you can show the bank that it has made a mistake and that the change is justifiable, you'll have a good chance of winning your case.
What are the codes?
As soon as you submit a loan application or start using a credit card, your credit history begins to be recorded at ZEK. This takes the form of a string of codes, the length of time for which these codes remain varies according to the code. In these cases, the following questions should be asked:
- What do these codes mean?
- How long do they stay registered?
- Can they be modified or deleted?
Code for personal loans
Has your loan application been rejected? If so, a code 99 will be registered with ZEK with the reason for rejection. However, you will still be free to submit a new application to another establishment. Have you had several rejections? The more rejections you receive, the more likely banks are to refuse your loan application. Before you're turned down several times, call on our services and make sure you get your loan under the right conditions. Here's a quick summary of some of the codes that can occur:
Codes 01 and 02 : Codes with no negative impact. You have deferred a debt on a new contract. Or you have an outstanding loan and your commitments are honored.
Code 03 : Moderately severe code. Your current loan has payment problems involving late monthly repayments.
Code 04 : Severe code. Your credit is experiencing relatively serious payment problems. You are no longer able to make your monthly repayments and have asked for them to be reduced. Or you are in legal proceedings.
Code 05 : Your loan or lease has suffered a total or partial loss of financing. This means that the bank has lost money because you have stopped making payments.
Code 09 : This is an attempt to defraud, for example by falsifying documents and/or transmitting false data in order to obtain a loan.
Is there anything you can do when credit is refused?
Do you have a bad code that has a negative effect on your application and you'd like to remove it in order to get your loan? If so, call on our services and we'll look together at the best solution for your situation. Our experts know how to prepare and present your application to increase your chances of success. Above all, don't reapply for a loan after being turned down by another institution. Doing so could result in a second refusal and lose any chance of obtaining your loan in the future. At Lica, we take your situation and ZEK history into account before making your application. In this way, you increase your chances of being granted a loan on very good terms. We also offer data cleansing service.
You should also know that if you believe you have been the victim of a bank error, you also have the right to request a ZEK extract free of charge at the following link: https://www.zek.ch/fr-ch/preneurs-de-credit-et-de-leasing/donnees-sur-ma-personne.
You can then contact the institution(s) involved directly and try to argue that the code is unjustified.
Would you like to clean up your data or apply for a loan? Visit Lica.ch !
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