CREDIT BUREAUS: CAN I BE BLACKLISTED?
There is no such thing as a black list. It simply means that there
is negative data on your credit report that is hosted at a Credit
Bureau. This negative data can be anything, from a plain collection
on one of your loans right through Judgment data or even Debt review.
This negative data will have an impact on your ability to get loans
or open retail accounts as the credit provider will see this negative
behaviour towards your current credit as a potential way that you will
handle their loan; if granted.
A Credit bureau is an organisation that keeps a record of your credit
information. Your credit record shows how you manage your debts and is
used by credit providers and moneylenders to decide if you can afford
to borrow money or pay back a new loan.
The National Credit Act says each credit bureau must be registered
with the National Credit Regulator – who decides how your credit
information can be used and who can see your credit record.
What is the role of a Credit Bureau?
When you take out your first loan with a credit provider, you
have to fill in a form that asks for consumer credit information
– including your credit history, financial history, education,
employment and identity details. This information, and the details
of the loan, is given to a credit bureau that then puts together
credit report.
What are your rights regarding a Credit Bureau?
* To be told that a credit provider intends to report negative
information on you to a credit bureau 20 working days before they
do so
* To get a copy of your credit record from a credit bureau when you
ask for it – you can get one free record each year but may be
charged a small fee for further records
* To challenge information kept by a credit bureau if you are unhappy
with it
* For your information to be kept confidential, and for it to be used
only for the purposes that are allowed
How can your credit information be used?
* To decide whether or not you can afford credit
* To investigate fraud, corruption or theft
* To consider you for employment in a position that requires trust,
honesty and the handling of cash or finances
References:
* http://www.legal-aid.co.za/selfhelp/?p=750
* http://www.maxlaw.co.za/faqs/#toggle-id-4
This article is a general information sheet and should not be used or
relied on as legal or other professional advice. No liability can be
accepted for any errors or omissions nor for any loss or damage arising
from reliance upon any information herein. Always contact your legal
adviser for specific and detailed advice. Errors and omissions excepted
(E&OE)
SOURCE: NGL Attorneys
