As Switzerland's central credit information agency, ZEK is now a key player in the credit landscape. We explain why and how it affects you.
The ZEK. What is it exactly?
It is a database that collects information from several lenders in Switzerland. ZEK is an acronym for 'Zentralstelle für Kreditinformation' or 'Central Credit Information Office'.
Whether you are a private individual or a company, these bodies transmit data relating to your history as a customer; In particular, when you take out a lease, when you take out a loan, when you make a purchase or when you take out a credit card.
All this data is then processed and coded to determine the quality of your creditworthiness. This allows lenders to better judge the degree of risk when it comes to extending credit or, for example, making a forward sale.
Who is behind the ZEK?
The lending bodies themselves. If you visit the ZEK website, you will have access to a list of its members. These are mainly banks, financial institutions specializing in credit and other lending companies.
The association is headquartered in Zürich and is governed by a Board of Directors and an Executive Board of Directors. Who sits on it? Representatives of the association's members such as Migros Bank, Multilease or BMW's financial arm.
It is therefore not a public body but a private association.
So it's not the IKO?
ZEK, IKO, it's true that you can get lost.
The two associations work closely together. Both manage databases and share similar objectives in terms of collecting and sharing creditworthiness-related information. However, IKO adheres to the framework defined by the Consumer Credit Act (LCC) of 23 March 2001. The ZEK operates within a framework that goes beyond the constraints set by the LCC, particularly in terms of the amounts committed. In a way, the ZEK casts a wider net.
However, the membership is identical, and some representatives of the lending institutions sit on the respective committees of the two associations. We can therefore speak of two independent entities but closely linked in their vocation and creation.
What about my personal data? Are they verifiable? Are they protected?
The short answer is yes. As soon as you have a credit card, activate a lease, take out a loan or borrow any kind, the lender will transmit your customer history to the ZEK.
Note that your history is not necessarily negative. As a good payer, you will of course receive a positive rating. Different grades of scoring reflect the type of history assigned to you depending on the characteristics of the data received.
Any organisation can then access your data, either as a member of the ZEK or by making a simple request via an online form. You are also able to make this request yourself after confirming your identity. As a private person, you cannot, of course, check the status of another private or legal person.
Finally, to quote the ZEK about data privacy: "In accordance with the ZEK's statutes and regulations, our members may use the data in our database solely for credit and application verification purposes. Other uses, e.g. for marketing purposes or transmission to unauthorized third parties, are strictly prohibited. »
How can I verify my data?
A dedicated page is dedicated to it on the ZEK website. You can request your information via an online form that is made available.
Please note that you may incur certain costs if the information stored about you has already been transmitted in the last twelve months without it having been modified.
How long will my data be stored?
It all depends on what data it is. This can range from 2 months for a simple balance notification on a credit card and without this information being considered negative, to 30 years for a tutorship or curatorship.
On average, however, it takes between 2 and 5 years for the majority of cases.
An important piece of information concerns the refusal of a requested loan! It is important to know that a refusal generates a code that appears in the database and remains there for 2 years. It is therefore essential to go through an organization such as Milenia as a prerequisite for sending your application to a lending institution. In this way, you safeguard your chances of success for the future.
How can I correct my data if it is incorrect?
But your data must be. Good question!
This is because an error can occur. After all, it's a person who conveys the information and to err is human.
In addition, the data provided is often based on indisputable facts, but in other cases it may not be a true reflection of reality. Think of a dispute in the context of a purchase that would have justified a late payment or an address that was incorrectly noted when sending payment reminders.
In some cases, the collection may not be representative of an intention not to pay a justified invoice for which payment is due. However, non-payment is transmitted as data in the system and negatively coded.
The ZEK invites anyone who disputes its history to go through the lending body to rectify the situation. Of course, this may take time or even not be feasible. The ZEK also says it is monitoring the protests.
If in doubt, don't hesitate to contact Solvable, ourpartner in this area. They know the ins and outs and have proven experience in the field.
What does Milenia do with the ZEK?
As the leading financing platform in Switzerland, Milenia protects your interests as well as those of its banking partners.
A balanced loan, respectful of your means and adapted to your needs, will allow you to carry out your project.
Your advisor will therefore be keen to follow all legal and ethical guidelines to offer you the best offer on the market.
The ZEK is part of the arsenal available to your advisor to ensure that your credit application is responsible and passes the analysis carried out by the lending institution. It is a service that is provided to you free of charge and without obligation on your part. Quality is one of Milenia's values and you benefit from it.
Final Words
ZEK, IKO, Debt Enforcement Office... The financial sector and the authorities are taking the necessary measures to reduce the risk for any private or legal person contracting a service or sale. This may seem intrusive, but it also has the merit of avoiding cases of over-indebtedness.
For or against centralizing data, this is a reality. The EEZ merely reflects a history of activities and makes this information available to interested parties.
So choose a serious and responsible partner when considering a loan; one that will offer you a truly personalized service and that will use tools such as ZEK for you and not against you.
Finally, take advantage of rates starting at 3.9% and simulate your loan in terms of terms and monthly instalments on our website. Here you will find all the information you need in a clear, simple and transparent way.
