Lack of means and payment default entries

Lack of means

If the debtor has no garnishable income or distrainable assets, the enforcement officer finds that the debtor lacks means and returns the enforcement matters to the creditors (impediment for lack of means). If assets subject to limited enforcement are not found in the debtor’s possession, they will be issued with an impediment certificate for limited enforcement. The creditor has the right to send their receivable back to enforcement later.

When does enforcement cause a payment default entry

Establishing lack of means and an impediment to limited enforcement will cause a payment default entry for the debtor. Enforcement will also cause a payment default entry if the debtor’s pay, pension or other recurring income has been garnished or a payment schedule set up in place of garnishment has been in force for a minimum of 18 months in the last two years (lengthy enforcement).

Credit reference agencies maintain a credit register from which you can check your credit information.

Removing payment default entries from a credit information register

The National Enforcement Authority will, at the request of the debtor, ask the credit reference agency to erase a payment default entry from the credit information register when

• the debtor has paid their debt being collected through enforcement;
• lengthy enforcement ends;
• the time limit for the grounds of enforcement has elapsed;
• twenty years have elapsed from the debt’s original due date. The time-limitation of debts is described in more detail in another section ; or
• the grounds for enforcement has been repealed or the enforcement was unfounded for other reasons.

You can submit your request for having your payment default entry erased to National Enforcement Authority Finland's Electronic service.  Make the request in the debtor’s service in the section Messages with the topic Credit information. You can also send your request by email ulosotto.uo(at)oikeus.fi. The message must include the name and date of birth of the person. The payment default entry will be erased once the notification has been processed by the credit reference agency.

If the debt was not paid through enforcement, the debtor can file the request directly with the credit reference agency. Reliable proof of payment must be presented in connection with the request.

Validity of payment default entries

Payment default entries caused by enforcement are valid for three years after which they are erased automatically, unless the entry has been erased earlier on the above-mentioned grounds.