How long does bad debt keep information?

After 5 years from the time the customer pays off the debt, the bad debt history will be erased (Illustration photo)

Ms. Le Thi Diep (Phu Nhuan District, Ho Chi Minh City), who had a bad debt of more than 1 billion VND, said that she had just paid off this amount to the bank, but information about the debt was still on the system of the Credit Information Center (CIC) under the State Bank, making it difficult for her to continue borrowing capital from the bank to do business.

"How long will my bad debt history be kept and how will it affect me if I continue to borrow from the bank in the future?" - Ms. Diep wondered.

Regarding this issue, the leader of the Legal Department (State Bank) said that bad debt is a debt that the borrower is unable to repay according to the original agreement. This is one of the negative information that can affect the personal financial situation and the ability to borrow money in the future of the customer. Specifically, the bank will refuse to consider loan applications for customers with bad debts stored on CIC.

According to regulations, bad debt on CIC is used to record the borrower's credit information for a maximum period of 5 years. This means that after 5 years from the time the customer fully pays off the debt, the bad debt history will be erased unless requested by the borrower or the lending bank.

"Therefore, after paying off the debt, customers need to ask the bank to provide a certificate of no debt. On this basis, customers will prove to business partners that they have no bad debt, and banks will continue to lend when customers have a need" - the leader of the Legal Department (State Bank) instructed.

Source: https://nld.com.vn/nguoi-tung-dinh-no-xau-co-duoc-tiep-tuc-vay-ngan-hang-196240822085453034.htm