Renegotiation of an existing current account and changes to the account’s attributes
A debtor holds current account CA1. Initially (at time t0), the current account does not have an agreed credit limit, and at time t1 it goes into debit (i.e. there is an unauthorised debit balance). Thereafter, the credit institution and the debtor agree a credit limit for the current account. How should this be reported to AnaCredit? Should this be reported as the renegotiation of an existing instrument by reporting the date of renegotiation and the changes made to the account’s attributes? Or is this a new instrument (i.e. a new account with a credit limit) with largely new conditions, requiring changes to the contract and instrument identifiers, as well as other attributes?
In such instances, the choice of reporting option depends on whether the reporting agent regards moving from an unauthorised overdraft to an agreed overdraft as a renegotiation or a new instrument.
In the case of the former, the change should be reported using the same methodological approach as for any other renegotiated instrument – i.e. the date and status of the renegotiation should be reported, attributes which are renegotiated should be adjusted accordingly, and the inception date and the settlement date should remain unchanged.
In the case of the latter, on the other hand, the change should be reported as a new instrument – i.e. with a new contract, a new inception date and other data attributes reported in accordance with the conditions in the contract.