30 Jun 2010
Credit Reports & How To Clear Blacklisting
Adv Randolph Samuel @ Lucid Living
What is a Credit Report?
If you have accessed credit (i.e. home loan, vehicle finance, personal loan, retail clothing or furniture account etc.) you will have a credit report on the credit bureau. This is your personal credit record and contains the following information:
• Your personal information such as name, surname, marital status, physical and postal address, contact numbers, ID number, spouse details, current employer and occupation;
• Civil judgments for debt;
• Legal notices including administration orders, provisional sequestration, final sequestration and rehabilitation orders;
• Adverse information (Blacklisting ):
o enforcement action listings – this is when a credit/service provider has listed you for non-payment and this has resulted in a bad debt written off or repossession; and
o subjective action listings – this is when a credit/service provider has listed you for slow payment, late payment, delinquency or absconding;
• Enquiries recorded whenever your credit report is shown to another party such as a credit/service provider. An enquiry is typically done when you apply for credit; and
• Account payment history is a summary of your accounts including the date the account was opened, the credit limit or amount of the loan, the payment terms, the outstanding balance on the accounts as well as a 24 month depiction of how you pay your accounts.
What is a Credit Report Used For?
Your credit report is a factual reflection of your past and current credit obligations and shows your credit behaviour and payment conduct with your creditors. Your credit report is assessed by credit/service providers, when you apply for any credit facility.
A credit/service provider’s decision to grant you credit is heavily influenced by your credit reputation, gleaned from your credit report . It is highly unlikely that you will secure any credit if you have a blacklisting and if you do qualify, it will cost you more. Blacklisting
includes the following categories: judgments, legal notices, adverse information and negative status codes on your account payment history.
Considering the significance of your credit report on your ability to secure credit, it is imperative to ensure that the information contained on your credit report is accurate and up to date. Most importantly, if you are applying for credit you need to ensure that your credit report does not reflect any blacklisting .
How Do You Clear Blacklisting?
Depending on the category, blacklisting remains on your credit record for a prescribed maximum period of time:
• Judgment for 5 years;
• Administration and sequestration order for 10 years;
• Rehabilitation order for 5 years;
• Adverse enforcement listing for 2 years;
• Adverse subjective listing for 1 year; and
• Negative status codes on your Account Payment History for 2 years.
However, all blacklisting is capable of being deleted from your credit report. earlier than the prescribed display period. The required process for removing the particular blacklisting varies according to the category:
• Judgment and administration order can be rescinded and immediately deleted;
• Sequestration can be deleted, pursuant to obtaining a rehabilitation order; and
• Adverse listing and Account Payment History can be challenged on procedural (i.e. creditors must follow a defined process before blacklisting a consumer) and substantive (i.e. creditors must have legally justifiable grounds) grounds and if determined to be unfair, immediately deleted.
Improving your credit reputation and financial status starts with ensuring that your credit report is accurate and represents a financially sound position. Your credit report. when applying for credit, is not unlike you curriculum vita, when applying for a job. It is the first impression that you make on a potential creditor and has to represent you positively. An impeccable credit report is necessary and achievable.
If you have been blacklisted and need help to clear your name , call Lucid on 010 590 5617 or click here to submit an enquiry