What does it check?
We'll establish an individual's financial status by obtaining credit reports from two credit bureaus.
This check provides two credit reports from two Spanish credit bureaus, Equifax and Experian, and a judicial report which includes any debts registered with Spanish tax authorities, and municipalities (Fichero de Incidencias Judiciales).
The check may include information on judgements, bankruptcy, and defaults history. Defaults are categorised and reported for value and number.
The check reports on defaults found in two Spanish defaulter lists: the ASNEF file, which is managed by Equifax, and the Badexcug file, which is used by Experian.
Unpaid bills are shown on the report for the last 6 years.
ASNEF is the acronym for the National Association of Credit Financial Institutions. ASNEF is an association created in 1957 that manages a database that collects defaults that may have been incurred by an individual or a company. This database is popularly known by various names such as solvency file or list of defaulters.
Many people believe that ASNEF and Equifax are two different lists, but they are not. ASNEF is the owner of the data and Equifax is the one who exploits it. So when we say ASNEF file and Equifax file, we are referring to the same solvency file.
To register a default in the ASNEF database, the organisation must be a member of the association. The members of the association are:
• Banks, which are all those banks that provide their service within Spain, savings banks, etc.
• Consumer finance companies, which are the vast majority of companies that finance consumer goods, such as department stores, car finance companies, household appliance finance companies.
• Insurers of all kinds.
• Telecommunication companies.
• Companies supplying electricity and gas services.
• Other companies that do not fit into any of the above categories but that have their own risk, that is, they may suffer defaults in their activity.
Individuals should be on the list if they are not in default with any member company. On the other hand, if someone has an unpaid debt with an ASNEF member, most likely, the creditor company has incorporated the data related to said debt to the file. From that moment, the non-payment is visible to all members, which will make it difficult and even impossible for the debtor to obtain financing or any service offered by other ASNEF members.
The Badexcug file, used by Experian, telecoms firms, financial services organisations, and also by retail, media, public service, insurance companies and others.
In short, this database of defaulters is used by any entity that, that after paying a fee, wants to have information on the fulfilment or non-compliance of monetary obligations by an individual.
This information is provided to the file by the creditor. For example, if an individual leaves an invoice unpaid to the telephone company, it is this company that contributes the data on the default to the Badexcug file.
Unlike other types of files, Badexcug does not require the consent of the affected party to carry out data processing. Of course, they have to notify the consumer if their name happens to appear on one of their lists.
Individuals may be denied credit, a loan or may not be able to develop a business project. The most common reason is that their name is included in a database like the Badexcug file.