Frequently Asked Questions

Most frequently asked questions and the model answer

I have been told that I have been blacklisted what does this mean?
Blacklist is a misleading term, which came about when credit bureaux only kept negative information. In the 1980’s, following international trends, credit grantors are now encouraged to also share positive information about their customers, as this facilitates access to credit. The perception that Credit Bureaux only keep negative data is there for not true. For example, about 85% of the information held on Credit Bureaux is positive information and only 15% is negative. One cannot be blacklisted but can be part of the 15% who have a negative notation. The data is not divided into good and bad it is all on one comprehensive database.

I went to apply for credit and I was told that the Credit Bureau declined my application.
Credit Bureaux do not grant credit. Different credit grantors have different credit granting policies that they use to grant credit. They would use information provided by Credit Bureaux with the information that credit applicant supplies in the application form as part of their decision making process. But they need to follow the rules and regulations that are determined by their own credit granting policy.

What is a default?
A default means you are in default of your obligations i.e. you have failed to make the payment of the sum that you owe. It is submitted by Credit Grantors to the Credit Bureaux. A default is held on the system at Credit Bureaux for three years and is then automatically removed.

What is a judgment?
A judgment is granted when a court has ordered that the individual make payment of the money that they owe. A legal process is followed before a judgment is issued. A summons is issued to the individual. The law stipulates that the summons does not necessarily have to be issued to the individual in person but can be issued to the individual’s domicilium (where the individual lives). The summons informs the individual of the court appearance and allows them to come forth to represent themselves. Where an individual fails to appear the judgment is issued in default.
The judgment is held on the system of Credit Bureaux for five years and is then automatically removed.

When do credit grantors decide that you are in default?
Each credit grantor has its own credit granting policies. Credit Bureaux contracts stipulate that in order to submit a default:

The credit grantor is a registered subscriber with a Credit Bureau.
The default must be accurate
The account may not be in dispute
The debtor has been sent prior notice
The amount is a result of a credit-related transaction

Why do credit grantors need to check my credit profile?
Credit grantors check an individual’s credit profile as this:

Allows credit grantors to assess how the individual has repaid and managed their debt
Allows the credit grantors to share information on individual’s payment history
Allows credit grantors to quicken process of granting credit
Allows the credit grantors to lessen risk thus lessening the price of goods.

The information that Credit Bureaux keep infringes on consumers privacy
Credit Bureaux do not infringe on privacy. The credit bureaux hold the following information on their system:

Public information – judgments are public records which means that anyone can go and look at this information. Kept on our system for 5 years and on the court records for 30 years.
Identifying information – This information is given by the credit applicants on the application forms when they apply for credit. When a credit applicant completes a credit application form with a consent clause in the small print, they are giving the credit grantor the right to check this information and your profile with the Credit Bureaux.
Credit Behaviour Information – Information that is forwarded to Credit Bureaux by the credit grantor. This information is a reflection of how you have conducted your account. The credit grantor needs to ensure that the information is correct and the credit applicant is aware that the information is being submitted to the Credit Bureaux. This is often outlined in the small print of the credit agreement/application.
Credit Bureaux do not keep any information of a sensitive nature, i.e. racial, ethnic, political opinions, religious or similar beliefs, individual membership of trade unions, data on physical or mental health and conditions, sexual orientation, criminal offences committed and any proceedings for any offence committed or alleged to have been committed.

What is the minimum amount that I can receive a judgment for?
The minimum amount that a judgment can be granted for is R50. However, most Credit Bureaux will only accept a judgment that has a minimum amount of R100 (since February 2002).

What should you do if you have a default notation on your credit profile?

Make payment arrangements.
Ask the credit grantor to send the written instruction to update the information.
Request a copy of the written instruction for your records.

Why is a default/ a judgment kept for 3 years and 5 years respectively?
When the code of conduct was drawn up the various bureaus together with their subscribers did investigations into the predictability of the age of a default or judgment. After this investigation was done the culling rules were set. They were then forwarded to the Department of Trade and Industry for approval.

Once I have paid why does the default/judgment not get removed?
Credit Bureaux will not remove judgment unless it has been rescinded in the court of law. Defaults and/or judgments are not removed immediately because they are part of an individual’s credit history and credit grantors are entitled to receive this information so that they can minimise their risk.

I did not give anyone the consent to have my information, where did the Credit Bureau get the consent to keep my information?
As part of the terms and conditions of granting credit, Credit Grantors will get consent from you, the applicant for credit.
Usually, by signing the application form, you gave consent for the Credit Grantor to access your Credit Report and submit data to the Credit Bureaux. This is usually in the small print.
If you have not given your consent, the Credit Grantor cannot access your credit record or submit information to the Credit Bureau on your account payment behaviour on a month to month basis.

What should I do if I have lost my ID?
When an individual has lost their ID they need to report it to the police. Where they should request an affidavit and a case number which they would need to fax through to the South African Fraud Prevention Service who will note that the ID has been stolen and monitor its use.

What if people have opened accounts with my ID?
The Credit Information Ombud encourages consumers to access their profiles at least once a year to see what is on the profile. Contact the companies that have listed him/her and request that they provide him/her with the application form which he/she has allegedly signed when he/she opened the account. Should the subscriber fail to do anything about it then the Credit Information Ombud will follow the dispute process.

Why do I have to pay to access my own information?
Credit Bureaux offer a service to the consumer, which encompasses a call centre, with people who are trained to pull off profiles, explain and counsel individuals on how to manage their credit profile or if necessary rectify negative profiles. Credit Bureaux use sophisticated technology to maintain, update and ensure the safety and security of the information.

Debt Collectors Judicial Matters Act
This act stipulates that should the plaintiff in judgment give written consent for a judgment to be rescinded then the magistrate must grant this rescission. This does not mean that the plaintiff has to give his consent.
The plaintiff is not likely to consent unless all outstanding monies are paid. Consumers need to consult an attorney in this regard.

Credit Bureaux do nothing but destroy lives, why do we need them?
Credit Bureaux are vital to our economy as they:

Allow for immediate access to credit.
Allow consumers to buy now and pay later.
Help credit grantors to assess the risk so that they are able to extend credit.
Help the credit grantors keep the price of goods down by not having to raise the price to counter for poor payment behaviour of a few.
Helps credit grantors exclude poor payers from the process.
Give consumer’s access to credit without them having to save the full amount before they can buy.
Increase the level of economic activity in the country.

What if I lose my job and I am unable to pay?
When an individual completes an application form the individual agrees to abide by the terms and conditions stipulated by the grantor, that they will pay the agreed amount in full and on time. If the individual has lost his/her job it is important that they inform the grantor of their situation and try to come to an agreement on the payment. Should they be able to come to an agreement, it must be put in writing.

How do I know who has accessed my profile?
Each time a subscriber makes an enquiry on your profile the information of the subscriber who has made the enquiry is reflected. The information shows the name of the subscriber, the date the enquiry was made and type of enquiry made.

My mother asked me to sign an account on her behalf?
If you sign for a contract then it will reflect in your name and not in your mother’s name for example. Failure to pay the amount could result in a default or a judgment been taken against your name. So never give your name to someone else.

What is a garnishee order?
A garnishee order is when a credit grantor attaches part of an individual’s salary to pay off an admin order, a judgement or a debt.

How do Credit Bureaux ensure security around data?
Access to the information kept on the Credit Bureaux’ database is limited to their subscribers. Each subscriber is issued with a specific security code. The subscribers sign an agreement with the Credit Bureaux on the ethical use of the information.
Within the Credit Bureaux there are a limited number of people that are given access to remove or to amend the information on the database. These individuals are given security codes and their access into the data is closely monitored.

When can a credit grantor repossess my goods?
Different credit grantors have different credit granting policies. However, each credit grantor would detail this information in the agreement that is signed with the applicant.

What is an admin order?
This is an order granted by Magistrates Court at the request of the debtor, provided that debt does not exceed R 50 000. The order examines the debtor’s financial position and appoints an administrator to whom the debtor makes regular payments. These payments are divided proportionately amongst creditors. An administration order remains on your record for a period of 10 years or 5 years from the date of rescission whichever data comes sooner.