Credit providers are looking to lend money to consumers who have proved they are responsible with money and have a high chance of repayment. However, not everyone realises how various financial instruments work or overspend to maintain a lifestyle and in turn become blacklisted for failure to pay their debts. Credit bureaus keep your credit history, both the good and bad aspects. A poor record of data can include slow or late payments, defaults or blacklisting.
A blacklisted person is someone who is seen as a risk and denied access to certain financial privileges and services. In South Africa, you may be placed on a blacklist because of your failure to consolidate outstanding debt. Blacklisting is the most serious and will jeopardise your chances of getting finance. Theoretically, you should not be able to be blacklisted without being aware of it, but it can and does happen.
To ensure you are not blacklisted, it is essential to check. South Africans have access to one free credit report per year. These are easy to get hold of and can be done in a minute or two online. You can also get them telephonically. You may only be blacklisted if judgment was taken against you.
The National Credit Act Act 34 of stipulates that if you were blacklisted and have paid the debt for which you were listed, you may apply to the credit bureau where you were listed to have your name removed from that list. This can be done by applying for the cancellation of that blacklisting.
Most attorneys will bring this application for you for a minimal fee. You may also apply directly to the credit bureau. The majority of companies and financial institutions assess their risks on the basis of information supplied by the credit bureaux.
The company provides services over a period of time and the consumer received monthly statements. The agreement provides that, if the amount debited to the account is not paid within 30 days from the date of the account, interest will be charged on the account.
This differs from a discount transaction , which is an agreement in terms of which goods or services are to be provided over a period of time and more than one price is quoted, the lower price being applicable if the account is paid on or before a determined date, and the higher price being applicable if the price is paid after that date. Although similar concepts, the difference is that with an incidental credit agreement , the outstanding amount has already become due, owing and payable due to the fact that the payment date has passed.
This failure to pay in time will result in a fee, charge or interest being levied, as in the cell phone company example. Whereas with a discount transaction , the failure to pay the discounted price will not result in a fee, charge or interest being levied as the payment date has not yet passed and the consumer is not in default.
However, it is important to note that those who conclude an incidental credit agreement , discount transaction or other forms of credit agreements with a consumer will be considered to be a credit provider by the Act, allowing them to provide consumer information to credit bureaus. This notice, on its own, should be very effective and persuade the consumer to settle their debts promptly, in order to avoid being prejudiced by this black mark against their name.
Only once notice of intention of listing has been given and the notice period expires, may the credit provider or prescribed person submit this information to a registered credit bureau. Three out of the four institutions require a subscription fee in order to make use of their services, which include the recording of consumer information.
This may be very useful when it comes to dealing with difficult customers. This process would usually begin with a Letter of Demand being sent, followed by the service of a summons. Necessary cookies are absolutely essential for the website to function properly. Web Ref Number Search. Advanced Search. Your questions on blacklisting answered. Email article to a friend. We will communicate real estate related marketing information and related services. We respect your privacy. See our Privacy Policy.
Debt places you at risk of being blacklisted. What does it mean to be blacklisted? How does blacklisting impact you? How can you be blacklisted?
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