Clean slate law

For Colombians it is no secret how important credit life is, but building a good credit life can be complicated, and if you don’t have a good credit history, it is difficult to get a loan, a credit card or even an apartment, so a good start from a young age is crucial.

Everyday facts such as having a telephone plan means a great responsibility, which you must know how to handle, because not paying them on time, not negotiating them, no matter how small the debt is, can lead to losing opportunities in the future and receiving a negative report on your record.

In case you find yourself in this circumstance, there is good news thanks to the known law 2157 like Clean Slate LawThis law, which was enacted in November 2021 and will be in force until October 2022, is intended to strengthen the right to Habeas data by granting amnesties for those who have defaulted on their loans. In other words, if you pay your financial obligations during the first twelve months of the “Clean slate”.If you did it before, your negative report in the credit bureaus will be eliminated in a maximum term of six (6) months counted from the date of payment of such obligations.

How long does the negative report last with the Clean Slate Law?

Prior to the regulation, a person’s negative report remained twice as long as the delinquency and up to a maximum of 4 years. That is, if you did not pay a debt for 2 years and after that time you catch up, the negative report on your behavior remains for twice that period, or 4 years in this case. In that time, anyone reviewing your financial life will notice that you have defaulted on an obligation, making it difficult to access various services.

Now, with the Clean Slate Law, which will be in effect only until October 2022, the time for that negative report, once you become current, will be only 6 months after paying the debt.

For whom does the standard apply?

Applies to all debtors who become current with their delinquent obligations reported in credit bureaus, before or during the effective date of the Clean Slate Law. The regulation also has benefits for those classified as MSMEs, small producers in the agricultural or tourism sector, individuals engaged in commercial or independent activities, victims of the armed conflict, young people and rural women who have any type of agricultural credit with Finagro, and debtors or co-debtors who have credit obligations with Icetex. If they pay their obligations during the term of the Clean Slate Law, the negative report will be removed from their credit history immediately.

This has been very beneficial for Colombians, since according to the reports 7,456,384 Colombians have left Datacrédito, 6,993,911 from Cifín and 1,639,333 from Procrédito, but remember that this law is exceptional and temporary, so if you want to take advantage of the above benefits you will have to do it before October 2022, date on which the reports would return to their normal duration of up to 4 years.

Cybergraphy

Clean Slate Law: How to get out of Datacrédito (tributi.com)