I know we’ve had a lot of discussions around this issue, and thought that I should confirm/ shed some light on this issue as many people seem to have missed this important communication
On 26 February 2014 the minister of DTI published in the Government Gazette Notice No. 37386 regulations for the Removal of Adverse Credit Information and Information Relating to Paid Up Judgments. What this means is that credit bureaus are to remove adverse consumer credit information (such as adverse classifications of ‘handed over’ or ‘written off’) and information relating to paid-up judgments (such as default judgments where the consumer has settled the capital amount under the judgments) as of 1 April 2014 till end of May 2014. So if you have been previously blacklisted, know that your name will be cleared come 1 June 2014. This will apply to all the people of South Africa on the credit bureaus.
The Government took this decision after realising that:
- Credit Information had become an Impediment to Employment, and as a country with high unemployment rate something had to be done; and
- Change in financial position was usually never reflected on a consumer’s profile, and this was an obstacle that was used by credit providers to deny consumers credit based on the information even though their financial position might have changed.
What this amnesty mean is that:
- No credit provider may use that information again in respect of a consumer applying for credit;
- Prospective employers will not be able to use the information to deny you a job;
- Credit bureaus will no longer give out this information on enquiry by credit providers; and
- Do not end up blacklisted again since you’ve been given a lifeline.
However, the consumer remains liable to meet his or her obligations in respect of any credit agreement that is not settled with the creditor. The blanket amnesty does not take that obligation away.
Many credit providers are obviously against this, but they do not have a choice!
By Guest Blogger