CLIVE had a loan he was paying off in monthly installments until he lost his job and was no longer able to pay.
He contacted the loan company and told them he didn’t earn an income and would not be able to pay.
They told him the best that can be done was to have his installments reduced, but that payment was still necessary.
The loan company kept on calling him for a payment he couldn’t afford to make.
Clive kept applying for jobs, but was unsuccessful in his applications.
Eventually, he found out that it was because he had been blacklisted.
No one had informed him that he would be blacklisted, and he didn’t understand how it had happened.
These are the different kinds of blacklistings, and how they can be undone
) Court Judgement: this is where there is a judgment sought against you for a debt that is owed.
It stays on your credit record for five years.
But it can be removed before the five years, if the debt is paid off in full and proof of payment is sent through to the Credit Bureaus.
Or by obtaining a court order rescinding the judgment.
) Adverse classifications: this is information regarding action that has been taken by your creditors in order for you to make payment, such as sending you a final letter of demand.
This stays on your profile for a period of a year, or can be removed once the debt has been paid in full and the
paid-up letter has been sent to the credit bureau.
) Consumer behaviour: this is information showing how one has been paying their accounts.
A person can be listed as a late payer, which can affect the decision by other creditors to extend credit to you.
This information also stays on your credit profile for a year, or can be removed by making full payment and having the paid-up letter sent to the credit bureau.
) Debt Counselling or Review: this stays on your profile until the process is completed and a clearance certificate has been issued.
) Sequestration (insolvency): this stays on your profile for five years or until a rehabilitation order has been granted.
The rehabilitation order itself stays on your profile for a further five years.
Unfortunately, there are times when incorrect listings will show on your record or listings that have been put there in error or in contradiction to the law or even through fraud.
These listings can be cleared by submitting a formal dispute to the Credit Bureau.
There are four main credit bureaus in South Africa: the Experian, TransUnion, Compuscan and XDS.
Their websites all set out procedure for lodging disputes for these incorrect or unfair listings.
CLIVE needs to check his credit profile to see what kind of listing he has, and to file a dispute.
This is not because he doesn’t owe the money, but because in terms of the National Credit Act, a creditor needs to inform you in writing of their intention to blacklist you.
Their letter also has to give you 20 days to respond before they can forward your name to the Credit Bureaus to be listed.
The Credit Bureau will do an investigation: if it finds that Clive has, in fact, been listed without proper process being followed, then the listing has to be removed.
South Africans are entitled to one free credit record per year.
So, it is important that you request and check your credit record on an annual basis to keep an eye on your credit information.
This will allow you to attend to any incorrect or unfair listings before they have an adverse effect on your credit worthiness.
