Guide

European banking services

Credit checks in Europe

Europe does not currently have as extensive a credit checking system as the UK. Credit applications are reviewed and decisions are commonly based on:

  • salary
  • current debts
  • family situation

However, if you or a director of your company holds an account and runs up bad credit, then a bank will put you in a special file which is shared by all lending institutions.

Recent developments

There have been recent developments to create a common credit market across Europe and maintain high levels of consumer protection.

The Consumer Credit Directive (CCD) came into force as law on 1 February 2011 and any credit agreement signed after this date must comply with the regulations.

The CCD will affect your business if it involves lending money, or making credit available to consumers, or acting on behalf of consumers or lenders in relation to prospective credit agreements.