Cape Town - South Africans with paid-up default judgments against their names at credit bureaux are set to have their adverse records cleared in the next few months, Trade and Industry Minister Rob Davies announced on Thursday.
Regulations which would ensure the removal of adverse consumer credit information and information relating to paid-up judgments were published in the Government Gazette this week.
"The notice comes into force on the first of April, meaning that information cannot be used and this information can't be used from that date, and then the credit bureaux have got two months thereafter to clear up their systems," Davies said.
The regulations did not mean people who did not pay their debts would be automatically cleared.
"It says that a paid-up judgement... it's out, it's off."
Davies said those with paid-up judgements would not have to approach a court and go through various other processes before the information was removed from their credit profiles.
"If they've got terminology applying to you saying you're a slower payer or irregular payer or something like that, that must also be removed."
But, the credit profiles of South Africans would still show on the system.
The profiles included information on how many credit agreements people had and how they were making payments against those loans or accounts.
"It's a once-off exercise, so if thereafter you incur a judgment, it doesn't mean you're off forever, you go back on the system," Davies explained.
Credit providers would still be able to assess risk by looking at one's profile.