Written by: Casper le Grange
Article source: JOY! Magazine
I’m blacklisted” is the start to most calls I receive from consumers wanting assistance. There is nothing in the National Credit Act about “blacklisting”. This has been used to explain to a consumer what we, in the industry, know as having ‘adverse classifications’. This indicates the classification relating to consumer behaviour, or action taken against a consumer that includes, ‘payment default’, ‘slow paying’, ‘absconding from paying’, or ‘not contactable’. It also includes notification that a consumer has been ‘handed over for collection or recovery’, ‘ legal action’, or ‘write-off’.
Everyone is listed at the credit bureau
Consumers often think they are only listed at the credit bureau if they have an adverse classification – this is not true. A credit bureau must list all consumers if they apply for credit, whether it was granted or not. All your credit agreements that you have been party to must be listed, the pattern of payment, or any default under a credit agreement, a debt review application, and so forth. And that is not all! Your professional or business history – including termination of any employment and related matters – is also listed. This includes your identity information, past and current address, marital status, family relationships, and much more.
Court judgements remain for five years
As per Transunion Credit Bureau, a court judgement – for example where a court issues an instruction to you to pay an outstanding amount – will remain on your credit report for five years. If you pay the full amount owed before that time, the judgement will be removed from your credit report as soon as the credit bureau receives either proof of payment from the credit provider or a valid court order rescinding the judgement.
A court judgement will remain on your credit report for five years.
What happens if you don’t pay?
If you don’t pay your account and the credit provider takes action against you, such as sending you a letter of final demand, or if you continually pay your accounts late, a credit provider could have you classified as a ‘late’ or ‘tardy’ payer – both of these classifications remain on your credit report for one year. If you pay the full amount owed before that time, the information will be removed from your credit report as soon as the credit bureau receives proof of payment from the credit provider.
How to get a clean credit record
Under debt review, you will be listed as being under voluntary debt restructuring, this will be removed once all debts are settled and you receive a Clearance Certificate / Form 19. The listing can be removed even if you still have a bond to repay. Upon receiving the Form 19, the credit bureau must expunge (remove) from its records the fact that the consumer was subject to the debt review as well as any ‘adverse classification’. Meaning you start with a ‘fresh’ credit record. If you have any further questions please contact our office for assistance.
“I am a Registered Debt Counsellor, registered with the National Credit Regulator, NCRDC1560. 12 years in the industry should show that my dedication to doing debt review correctly is a priority, passion, and an honour.” – Casper le Grange
Casper Le Grange is a registered debt counsellor with the National Credit Regulator, NCRDC1560.
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