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Have you been blacklisted?

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In terms of the regulations published on 28 November 2006, (with regard to section 73 of the Act) a partial amnesty had been granted to consumers to improve their credit rating. These amnesty regulations of the National Credit Act, which came into effect in November 2006, made provision for specific information to be removed from the credit bureaux by 1 June 2007.

Adverse credit information in respect of debts of less than R500 (which were listed before 1 September 2006) would have been removed from the consumer's credit profile. Accounts that were dormant for longer than 24 months by 1 September 2006, where no collection action had been taken (unless adverse information is reflected), would also have been removed from the consumer's credit record.

Judgment Information which the credit bureaux receives from the courts will be removed from the credit bureaux in the following circumstances.

  • All judgment information in respect of a debt of up to R500 – unless the consumer has more than two unpaid judgments on his or her credit record. This means that the judgment information under R500 will be removed from the credit bureau, and it is not a prerequisite that the debt must have been paid, barring the condition that there shouldn't be more than two unpaid judgements on the person's credit profile.
  • In respect of a debt of up to R5 000, if the judgment is older than 18 months as at 1 September 2006 – unless the consumer has more than two unpaid judgments on his or her credit record. Again there is no prerequisite for the debt to be paid in full for the information to be removed from credit bureaux, but the judgment information must have been listed for at least 18 months by 1 September 2006 and it will then be removed automatically from the credit bureaux without application having to be made by the consumer. Only the judgment information will be removed from the credit bureaux and consumers still have a moral obligation to repay the outstanding debt to the credit provider as the credit provider can still exercise certain rights.
  • In respect of a debt of up to R50 000, if the full amount was paid by 1 September 2006.
  • In respect of a debt of up to R50 000 reflecting on the consumer's credit record on 1 September 2006, if the full amount is paid by the consumer between 1 September 2006 and 1 September 2007.

    Manie van Schalkwyk, the credit ombudsman says, "This is a big concession for consumers as it means that any judgment under R50  000 which has been paid and will be paid by 1 September 2007, will not be displayed on the credit bureau for the full data retention period of five years, but will be removed on proof of payment from the credit bureau. Consumers must see this as an opportunity to pay the outstanding debt in terms of the judgment to get this information removed from the credit bureau. He states further, "Consumers simply have to prove that they paid the outstanding debt. On application, the credit bureau will verify this information and then remove the judgment information."

    Developing a common sense attitude to credit and being realistic about what you can afford will ensure you never have to marshal the services of the regulators.

    Click here to find out more about the National Credit Act.

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