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Pretoria - There’s actually no such thing as blacklisting – ‘blacklist’ is an informal term used to indicate that a person has negative information on their credit report which will result in them being refused credit.
This will likely happen if you have a default, judgement, sequestration or administration order.
You can have an ‘adverse classification’, such as ‘delinquent’ or ‘slow-paying’, recorded at the credit bureaus, and that will remain in your file for a year. It’s more serious when you get a default , which applies when enforcement action is taken by the credit provider, like being handed over for collection or recovery, legal action, or write-off .
It is called a default because you have defaulted in terms of your credit agreement – that is, you’ve failed to make your payment. It will stay on your record for two years, and then be automatically removed. (If you pay the debt in full before the two years are up, the bureaus must record that in your file too.)
A judgement is a court order which is the culmination of a legal process. It starts with a summons, issued either to you personally, or at your domicilium (in the credit contract, you will have chosen this as the place where you agree to have notices served upon you if you are in breach of contract).
The summons will give you a date when you must appear in court. (If you don’t, a default judgment will be issued in your absence.) A judgment is requested by your credit provider (your bank, for example, or car finance company) and stays on your record for five years. Credit bureaux will not remove a judgement unless it has been rescinded in a court of law.
If your debt situation becomes overwhelming – but the debt does not amount to more than R50 000, either you as the debtor or your credit provider can ask for an administration order.
This is granted in a magistrate’s court. An administrator is appointed to whom you make monthly payments: the administrator then divides the amount up and pays your various creditors. The record of an administration order will not be removed for ten years.
A sequestration order is basically a declaration that you are bankrupt. Since it is a serious matter, it must be granted by the High Court. Your creditors cannot take further action against you: the court will look at the value of your estate and decide how much of the debt will be paid to various creditors (for example, if you owe R1,000 to a bank, and the court decides that you can only pay 30c in the rand, the bank will only get R300).
You will be insolvent for up to ten years, during which time you will not be able to access credit at all. A sequestration order remains on your record for ten years. You can, however, apply for rehabilitation; when a rehabilitation notice is issued, that order will remain on record at the credit bureau for five years.
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This will likely happen if you have a default, judgement, sequestration or administration order.
You can have an ‘adverse classification’, such as ‘delinquent’ or ‘slow-paying’, recorded at the credit bureaus, and that will remain in your file for a year. It’s more serious when you get a default , which applies when enforcement action is taken by the credit provider, like being handed over for collection or recovery, legal action, or write-off .
It is called a default because you have defaulted in terms of your credit agreement – that is, you’ve failed to make your payment. It will stay on your record for two years, and then be automatically removed. (If you pay the debt in full before the two years are up, the bureaus must record that in your file too.)
A judgement is a court order which is the culmination of a legal process. It starts with a summons, issued either to you personally, or at your domicilium (in the credit contract, you will have chosen this as the place where you agree to have notices served upon you if you are in breach of contract).
The summons will give you a date when you must appear in court. (If you don’t, a default judgment will be issued in your absence.) A judgment is requested by your credit provider (your bank, for example, or car finance company) and stays on your record for five years. Credit bureaux will not remove a judgement unless it has been rescinded in a court of law.
If your debt situation becomes overwhelming – but the debt does not amount to more than R50 000, either you as the debtor or your credit provider can ask for an administration order.
This is granted in a magistrate’s court. An administrator is appointed to whom you make monthly payments: the administrator then divides the amount up and pays your various creditors. The record of an administration order will not be removed for ten years.
A sequestration order is basically a declaration that you are bankrupt. Since it is a serious matter, it must be granted by the High Court. Your creditors cannot take further action against you: the court will look at the value of your estate and decide how much of the debt will be paid to various creditors (for example, if you owe R1,000 to a bank, and the court decides that you can only pay 30c in the rand, the bank will only get R300).
You will be insolvent for up to ten years, during which time you will not be able to access credit at all. A sequestration order remains on your record for ten years. You can, however, apply for rehabilitation; when a rehabilitation notice is issued, that order will remain on record at the credit bureau for five years.
Add your voice on the Debt Issue:
*Ask our experts
*Share a personal story
*Write a guest post
