There has been a lot of hype on various media publications about the National Credit Act and more so about amnesty for those consumers whose credit reports reflect adverse information a.k.a. “blacklisted individuals”. The SACP has very much been at the forefront of this campaign for a clean slate for South African consumers.
The result? I hear you ask.
You will be pleased to know that the National Credit Regulator has listenned and we now have the Regulations on Consumer Credit Information (Section 73 Regulations) published.
The regulations state that the following credit information be removed from consumer credit records by no later than 1 June 2007:
- Adverse consumer credit information in respect of a debt of less than R500*;
- Consumer credit information relating to accounts, that have been dormant for a period of at least 24 months on 1 September 2006*;
- Civil court judgments:
a) of up to R500 (except if a consumer has more than two unpaid judgments);
b) of up to R5000 if the judgment is older than 18 months (provided the consumer does not have more than two unpaid judgments on his or her records; - Judgements of up to R50,000 if the judgment amount was paid by 1 September 2006;
- For judgements up to R50,000 that were unpaid on 1 September 2006, the consumer has until 1 September 2007 to pay the judgement amount and submit proof of payment to a credit bureau.
This information should have been reflected on your records as at 1 September 2006 in order to fall into any one of the above mentioned categories and for the credit bureaux to remove it by 1 June 2007.
Great! Then what?
Once the credit bureau has removed information listed above, they must advise all other registered credit bureaux, who must also remove any similar information from their records.
What if a credit bureau does not remove this information?
If the credit bureau does not remove the specified information, consumers must lodge a complaint with the credit bureau. If the information is still not removed after the consumer has lodged a complaint with the credit bureaux, the consumer can contact the NCR or the Credit Information Ombud. See “A guide for disputing information on your credit report”.
For judgements up to R50,000 that were unpaid on 1 September 2006, the consumer has until 1 September 2007 to pay the judgement amount and submit proof of payment to a credit bureau.
I refer the above I copied from your webiste. I have a scenario where I have a judgement for the amount of:
Date Plaintiff Amount Reason Court Case Number2004/02/18 Adt Security R5010 Bellvill A G 42510/2003
I have no other negative information on my credit report.
I am now in a situation where the attorneys are telling me I must pay R9218.00 dd.28 May 2007 so this figure will be slightly more as of now.
Herewith the breakdown of the figures:
Judgement 5010
Summons 316
Rev Stamp 20
Attorney Fee 42
Interest 123
Judgement 266
Writ 52
Sheriff Fee 42
Interest 131
Attorney Fee 46
Interest 2539
Interest 61
Collection Commision 500
Vat 70
Settlement Figure 9218
What must be paid before 1 September 2007 ? The judgment amount or all these other costs as well ?
The interest I am being charges is almost R3000.
I look forward to your analysis of this & your feedback.
Regards,
S Davids
Hi Siraaj,
Apologies for getting back to you now only…
I trust you read our disclaimer.
One a judgment has been loaded; there can be no additional charges to that debt.
You only have to pay the amount reflected on your credit report, which should be the amount on the court record i.e. judgment.
If the quoted R9 218 is the amount reflected including the interest then you have to pay the entire amount.
Once you have done so, you need to send the credit bureau(s) the proof of payment BEFORE 1 September 2007 and the judgment should be duly removed.
We hope this answers your question. Please reply with your progress so we can explore other avenues if this does not help.
Regards,
liberatingconcepts.co.za
The amount as per the Judgement against my Credit Profile is
R 5010. If I understand your comment correctly, I need to settle that amount in order to have the judgment removed under cover of the amenesty.
What about all these other costs / interests ?
Regards
Hi Siraaj,
In your situation, R5 010 seems to be the amount you should pay. Read below…
The understanding is that if a credit grantor “sues” you, they would go to court and present what the consumer owes them plus any additional charges i.e. interest, collection fees, attorney fees, etc… The sum of these charges (as the judge finds reasonable) and outstanding debt will be judgment amount, which is what you the consumer has to pay-up.
You can check this with the National Credit Regulator! Please let us know if any info here is different to what the regulator says.
We have obtained more clarification on this. The Debt Collector’s Act allows for interest and further collection charges to be charged even after the judgment has been passed. So you would have to pay up the full amount.
BR
I HAVE A DEFAULT LISTED FOR 1800.00 28-9-97
WILL THIS BE REMOVED EVEN THOUGH IT HAS NOT BEEN PAID
Hi Charmaine,
Thank you for your query.
Please confirm if your default is dated 28 September 1997. In that case it should be culled, expunged since it is older than the 3years even before the NCA.
Suggestion:
log on to www.mycredit.co.za and check you credit report. If the default still shows, then follow the dispute process (click here to view the article on disputing credit information)
starting with contacting the TransUnion Credit Bureau contact centre on 0861482482.
Please do return to let us know how this was sorted or not sorted…
Regards,
liberatingconcepts.co.za
Good Day,
I need urgent assistance as I wish to settle my debt and clear my name prior to the 1 September 2007 cutoff. I have the following listing:
26 Jan 2005 PEOPLES BANK K/PARK Magistrate 23 R26,908 MONEY 53670/2004
The debt collectors Bankcol are claimimg R35000 and apparently this is due to interst charges allotted by the bank. Am I in my legal rightt osettle on R26908.
Thanks
Vanessa
Hi Vanessa,
Something that I have been made aware of is the fact that interest can still be charged to the debt even after the judgment has been passed.
The interest will be as per your contract with People’s Bank. The debt collector will also add charges for the cost to collect, i.e. phone costs, postage, etc…
if you still have balances of retail accounts, but were paying irregular, but brought the accounts to date, can you be blacklsted?
Hey Andre,
No you shouldn’t get blacklisted for late payments, depending on your definition of blacklisting that is and how late your payment is.
In fact let me post this as an article, please read here. Can I get blacklisted for paying late?
I HAVE A COUPLE OF DEFAULTS AND JUDGEMENTS AGAINST MY NAME ONE OF THEM BEIGHT AFRICAN BANK I BORROWED R5000.00 IN FEB 2004 AND WAS RETRENCED IN JUNE 2004. I TOOK ALL NECESSARY DOCS PAPERS TO THEM TO PROVE I WAS RETRENCED AND A WHILE BEFORE I WAS RETRENCHED THEY GARNISHED ME I WAS UNEMPLOYED FOR OVER 6 MONTHS AND TO DATE THE ARE CLAIMING OVER R12000.00 FROM ME. CAN THIS BE CORRECT DO I HAVE TO PAY THEM THIS??
Hey Carmen,
I am sorry to be the bearer of bad news but you have to repay this loan. Yours is an unfortunate and quite common, but the only thing you can do is put a repayment plan together.
As for the R12000.00, it depends what goes into that figure but in a nutshell for as long as you still owe African Bank money, they are allowed to add any interest as per your credit agreement or 15.5% p/a(Mora rates as I have recently learned). On top of that, collection fees may be charged to your account and these would be telephone calls, letters, etc to you by the debt collectors.
I have 3 defaults on my credit profile. I have contacted Edgars & Truworths as I have settled these accounts in July 2006. Edgars told me straight out that it will stay there for the 3 year period Truworths however said it will be removed. I am still paying a debt from Ackermans & they told me that I was not blacklisted by them & they will not black list me as I have taken responsibility for the debt as I pay them regularly. What do I need to do to get this cleared from my profile? Thank you.
Hi Marchelle,
The big credit grantors are part of an association called the Credit Provider’s Association. This is where the “industry” tries to normalize how they do things and speak under one voice to the National Credit Regulator for example.
Now, one of the decisions by the CPA around defaults is that members do not remove defaults even if paid off but simply update to say “paid in full” or something to the effect. Now that seems to be the case with Edgars.
Is this legal, well it would seem there is a loophole that allows this to happen.
My advice is to ensure that the records are updated to say “paid in full”. Then lodge a complaint with the regulator and / or credit information ombuds regarding this.
Click here to find out how to dispute your credit information.
BR!
How does this work
more info please
Hi Steven,
It works as stated in the article. Perhaps you can ask a specific question?
By the way the amnesty has come and gone (1 September 2007)!
Regards
I have 2 defaults, one is Vodacom standing at R 5500,00 and the other is Italk which is standing at R7000,00.
Is it possible to get a discount if I want to pay these people the full amount by January 2008.
Howdy A.M?
It is certainly possible to negotiate paying less to settle your debt. I would suggest asking for the credit or debt collections manager as they naturally would have some discretion.
If you have the cash to settle in full, do give your creditors a call. Once you have paid the debt ask for proof of payment and contact the credit bureaus. You should also ask them to send a directive to the credit bureaus to remove the defaults.
PS. Don’t forget to click here to read this post on disputing information on your credit report.
Regards,
www.liberatingconcepts.co.za
I owe African Bank money at the moment I am financially in a tizz , my intention is to pay them but I cannot afford R3000 a month - is there an arrangement that I can make with them
Hi Ashley,
I would speak to the branch or credit manager at African Bank to work out some terms. They might agree depending on how serious the situation is and if it is permanent or a temporary glitch.
Failing which I would approach a debt counsellor to restructure your debt. This would mean you cannot apply for further credit until you get out of debt counselling!
More info on the NCR website.
For a debt counsellor try Gübra Consumer Consultancy on (012) 661 4530. Kindly quote you were referred by liberatingcomcepts.co.za
how does this credit act then now help us? if the law can allow rapists to go free why then cant they wipe out money outstanding before 2006 and start afresh. do we have to pay R5010-00 only to be killed by a stray bullet or a man claiming insanity.
WE NEED TO GET OUT OF DEBT SOON.
I have a Default against my name,submitted on the 12th of Feb 2007 for an amount of R520.I however settled the that account in july of the same year.the problem is that, this information stil reflects on my profile.
Could this not have been removed as per the credit amnesty?
Hi
my credit report shows that i have a judgement of R8000 on my credit card. As far as i now, i paid up the account last year August. When i contacted the bank, they say i owe the R219 for legals fees which i just paid them now. Is it posible to remove judgement against my name & also to open new accounts?
Hi
Can u tell me if the credit amnesty still stands? If i have a newly default from truworths that i want to pay in full R980.00, if paid must the credit buro take it off or must i apply for it to be taken off? Same with a judgment of R329.00?
Thanks
@Bren the credit amnesty is long gone, read these articles. You need to arrange with woolworths to remove your default status but you may find that they will only update your default record to “paid up”.
Regarding your judgment you need to pay it off, get a letter of consent of removal from the credit grantor and get your attorney to represent you in court.
Do contact one of the credit bureaux to check this information offcourse
goodluck!
@Sabatha this depends, you need to see if the default record on your credit report has been updated to “paid up” or someting similar. It is common practice for credit grantors to update the records rather than delete them off your credit report.
You can always lodge a dispute with the credit bureaux…
@Sonia as I saidto Bren, you need an attorney to represent you in court. You should get something in writting stating that you have payed all your debt and the bank / lender consents to the judgment being lifted (off the blacklist)…
How can I find out if I am listed on ITC?