Hey /biz/, I work in the lending industry and a question popped into my mind.
How does lending work in other countries? Specifically Europe and Asia.
How does credit reporting work in these places? Do they have bureaus like we do? In a place like Europe where people may often finance items in countries they may not live in, how does the underwriting process work?
I look forward to hearing specifically from those of you living or who have lived in these places.
Talked to an Opel dealer a few months back. And he told me that around 90% of the car sold new are paid with a loan.
But in the Netherlands you don't have many people who buy a car new (mostly occasions or cars that comes with a job).
In the Netherlands we have a goverment institution (BKR) that keeps track of your loans and if your late with your payments you get a rating.
THat rating is an combination of a number (A = late payments, H = late payments in the past but you try to recover them).
And a number (0 - 6), for example when you have a A4 rating that means you have late payments on a loan and the loan owner can't get in touch with you.
As a result, you will get a hard time getting a new loan.
You can declare bankrupcy, consequences is that you have to pay as much as possible for 3 years then you are free to go.