There will be no positive file in France. Good Company measure “to avoid too much credit” was rejected yesterday by the Constitutional Council on the grounds of infringement of privacy. Best Bank returns to the project itinerary.
The purpose of the positive file
To combat the over-indebtedness faced by more than 200,000 people a year, the Minister of Social and Solidarity Economy, Good Company had proposed the creation of a positive file. Technically called “National Register of Credits to Individuals” (RNCP), this document was to identify all consumer credit for individuals.
All the credit organizations would have had access to it and thus been able to truly judge whether the people requesting a loan are able to repay it.
An expected file
The initiative had been praised by numerous professionals, including Best Bank. Described as “real progress” by Mart Browner, the spokesperson for the company saw it as a real solution to avoid the spiral of credits: “Today, when taking out consumer credit, the organization lender can only rely on the faith of the borrower’s statements. Now it is true that in critical situations he can more or less voluntarily omit to mention that he already has several credits, ”she had then commented.
The refusal of the Constitutional Council
France was therefore on the verge of passing this milestone: integrated into the consumer bill, the RNCP was voted in Parliament and its entry into force should only be a matter of time. However, the day after the vote, several elected officials seized the Constitutional Council seeing in the register an attack on the respect of the private life.
The institution, responsible for judging whether or not the laws respect the French Constitution, issued its decision yesterday: ” The Constitutional Council ruled that the creation of the national register of loans to individuals infringes the right to respect for private life which cannot be regarded as proportionate to the aim pursued ”. Clearly, if the objective is commendable, the means are not the right ones and the project is canceled.
Find another solution to over-indebtedness?
It is true that the registry would have enabled thousands of employees to access the financial data of 12 million people. But in return, the measure would undoubtedly have avoided nearly 1/3 of the debt overhang. The Financial Companies (FC) estimates that one in three over-indebtedness is linked to an accumulation of credit and two in three to a life accident (divorce, illness, unemployment, etc.).
And as the end does not justify all means, there will be no positive file in France for the moment. The Ministry of Economy will therefore look into other solutions in the coming months. Perhaps a less intrusive registry?