Share

Amnesty and the struggle for credit

accreditation
(Shutterstock)
(Shutterstock)
Cape Town - Many consumers could be struggling to obtain credit due to their ignorance of certain aspects of the National Credit Act, according to Megan Gedye of Garlicke & Bousfield.

The act stipulates, under section 70, that "consumer credit information" includes a credit history.

A credit history can include a consumer's applications for credit, credit agreements, defaults, judgments or the threat of judgment, financial history, including past and current income, assets and debts, education, employment, career, professional or business history and personal information like address and marital status.

"All the initial information you have given your credit provider will be listed with the credit bureau, together with any subsequent information regarding your conduct under the agreement with that credit provider," said Gedye.

"Credit providers such as banks - on whom probably 90% of the population are dependent for credit - have access to this information."

Consequently, ignorance of section 70 has seen many individuals unwittingly listed with the credit bureaus and potentially struggling to obtain credit when they have defaulted on a credit agreement.

"Although the act does allow for the removal of a judgment listing from the bureaus, the judgment must have been paid in full or at least to the credit provider’s satisfaction only if the judgment has in fact been rescinded by a court of law," said Gedye.

"A rescission application can be both costly and time consuming."

Silver lining

The new credit regulations, however, brings a silver lining for people struggling to obtain credit.

The regulations envisage a two stage process. The first stage relates to a "once off removal" and the other an "ongoing removal of information".

The first stage refers to the removal of negative classifications, such as "default", "delinquent" or "slow paying" and adverse listings such as "written off" or "handed over".

The second requirement applies where all paid up judgments and adverse information listings will be removed on an on-going basis.

Both stages are automatic and no application by the individual is necessary.

"While access to credit in this country is encouraged and the new regulations are welcome, credit providers must now ensure they are particularly vigilant when extending credit," concluded Gedye.

* This information should not be regarded as legal advice and is merely provided for information purposes on various aspects of litigation.

- Fin24

Help us help you by taking our second annual Debt survey
and you could win R3 000, or add your voice by  sharing your debt  experiences, debt-busting tips and insights. Have a question? Ask our experts.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders