30 Jun 2010

Credit Reports & How To Clear Blacklisting

Credit Report 24 Comments

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

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24 Responses to “Credit Reports & How To Clear Blacklisting”

  1. Evelyn Naidoo says:

    I need to get a credit report, I am beyond my budget, and cannot meet to pay the arrears on my accounts and my loan. Please help me with the procedures or advice me what to do.

  2. Russel White says:

    I am under debt counselling but my creditors have not reduce their interest and allthough I have stayed rigidly with the payments, after 18 months I now owe more than I did eighteen months ago. How does one get the creditors to reduce the interest

  3. RandolphLucid says:

    Good day

    You need to review your credit report for a start. This useful tool reflects all your credit related information, including what accounts you have and the status (from a repayment perspective) of these accounts.
    You can access your credit report instantly from our website. Go to the products link and select Credit Pulse. This is our very own report, designed to interpret the credit information from credit bureau and provide you with guidance on what to do next – depending on the particular information on your report.
    Once you have your credit report, you can get in touch with one of our expert credit managers who will assess your circumstances and advise you on the best course of action to relieve your debt situation.
    please get in touch with us today on 010 590 5617.

  4. RandolphLucid says:

    Good day

    When you enter debt counselling, your debt counsellor submits a restructure proposal to your creditors. The restructure proposal proposes reduced repayment terms on your existing accounts. The debt counsellor will reduce your repayments by extending the term of the credit facility and/or lowering the interest rate that applies to the credit facility.
    In your case, i assume your debt counsellor only extended the term of the existing credit facilities (i may be wrong). This will result in you paying a lower instalment, but will also result in a significantly higher cost of credit – i.e. you will pay much more in the long run.
    Depending on the restructure proposal that was submitted on your behalf, you may find that certain long-term debt (e.g. home loans and vehicle finance) will initially have have significantly reduced monthly instalments that may not even cover the interest on the facility. This will result in the debt actually increasing in the short-term.
    The only way to get your current debt restructure proposal amended, is to negotiate with your creditors and explore whether they would be willing to have it amended.
    Creditors accept that the interest on the facility needs to be reduced and all our restructure proposals include this component. If we can restructure your debts in a manner that is viable for both you and the creditors, they will accept an amendments.
    I suggest you get in touch with us on 010 590 5617 and discuss how we go about renegotiating your proposal.
    If we could design a more appropriate restructure proposal

  5. Nombeko says:

    I am under Debt Review, to my surprise all my accounts are not moving ie the balances are even more that what i owed them when i was not under Debt Review, what should i do because i am frustrated.

  6. RandolphLucid says:

    Good day. The financial model of debt review is to lower your monthly instalments – by extending the term and reducing the interest rate on the facility. However in doing this, the interest is calculated over the extended term (increasing the total cost of credit). Your monthly instalment is set-off against the interest portion of the debt and other costs (the majority of the payment) first, with only the residual being applied to the capital portion. Because the interest increases dramatically (owing to the extended term) the current balance will in the short-term be larger than what it was before the debt review. This is not unlike buying a car for R50,000, but after finance charges (interest etc.) are added, the car actually costs R80,250.

  7. Concetta Ogans says:

    Hello There. I found your blog using msn. This is a really well written article. I will be sure to bookmark it and come back to read more of your useful info. Thanks for the post. I’ll definitely comeback.

  8. Almeta Lawrance says:

    Pretty nice post. I just stumbled upon your blog and wanted to say that I’ve truly enjoyed browsing your blog posts. After all I’ll be subscribing to your rss feed and I hope you write again soon!

  9. Rufina Burgoa says:

    Saying thanks will not just be sufficient, for the tremendous lucidity in your writing.

  10. Anton Horgan says:

    Good day

    I just want to find out how I can clear a justment on my name if it’s payed in full.

    Thank you

  11. RandolphLucid says:

    Good day Sir

    Please get in touch with one of our credit management advisors (on 010 590 5617) and they will provide you with the relevant information.

    Regards

  12. damiensam says:

    Good day,

    I have had an issue with my mobile company last year. Basically, I incurred a huge mobile bill last year, which I couldn’t afford due to losing my job. I then called the Mobile company and managed to work out a payment period. (I was late in paying as well at the time and my account was closed).

    I was instructed to pay an amount per month no later then the 28th of each month until the debt was complete, which I did. I then arranged payments which would be finalized in Feb 2011.

    I got a FINAL DEMAND letter in March 2011 stating that I haven’t paid all the money yet as I have not paid up the contract, but only the bill I incurred, which I understood and complied with. I then proceeded to pay that amount as well. (Also, I would like to note that my invoices showed everything as settled, so I thought the bill was done). The argument was that I only got invoices and bills for my arrears and not for my contract, which I was supposed to pay as well.

    I have later found out that Adverse Information – Enforcement Action has been taken on my name, stateing that I have not paid for the account. Let me state that the last payment I made on the SAME account was in February 2011, I got the final demand in March 2011.

    Also, I have not had any prior warnings although they telephonically insist that I did.

    I would like to know what I can do in this case?

  13. damiensam says:

    Apologies,

    (added) Also, on my credit record, it states that the Enforcement was that the date handed over was the 4th March 2011, which should be impossible if I’m still paying the account since October 2011, and never missed a payment on the very same account?

  14. RandolphLucid says:

    Good day

    Several circumstances have transpired, over a reasonably long period of time. It is therefore not prudent nor feasible to provide you with a conclusive opinion.
    This is a matter that warrants a review of all the necessary documents – i.e. the cell phone contract, the acknowledgment of debt, the promise to pay, the letters of demand etc. – so as to establish whether the service provider acted lawfully and to assess your alternatives.
    You will need legal representation, if you want to contest this matter – which i recommend you do. If you do not, you will have a judgment against you and your credit record tarnished for the next five years.
    Get in touch with our attorneys today – to assist you.

  15. damiensam says:

    Many thanks for your response,

    I will try getting in touch with lawyers as well as sorting this matter out. I have obtained my credit score from credithealth and it looks good, but the Adverse Information – Enforcement Action record reflects really bad and it’s said to be for 2 years, but still, it’s too long considering my circumstance and the way it was handled.

    Regards,
    Damien

  16. Lebogang says:

    My accounts was written off (default)and i have paid all my accounts in full. I would like to purchase a car how can you help me to clear my name because one of the accounts wil be cleared in 2012 October. hOW MUCH WILL YOUR SERVICES COST AND how long can it take for my name to be cleared

  17. RandolphLucid says:

    Good day

    A “blacklisting” on your credit report will certainly disqualify you from most (if not all) credit applications.
    The current rejection rate on motor vehicle finance applications is almost 50%.
    We can certainly assist you to rehabilitate your credit reputation/report, in order for you to qualify for finance.
    One of our attorneys will be in touch with you to get you the car you want.

  18. PAPO RONNY KAMENYE says:

    im papo im blacklisted long ago i need a help to be a car for fainance im very much interest my email is paporonnie@gmail.com my cell :0730340612/00244932127994 how much can i pay to clear my name quieckly

  19. sindies says:

    I ve a problem I paid off my debt off and put some up to date 3month ago but those that I’ve paid off still appearing on credit record and all that makes me a bad payer so I wanna wat can I do to remove then because I cnt afford anything because of the full paid record.

  20. RandolphLucid says:

    Good day

    When it comes to the information on your credit report, there are may factors to consider.
    Whether or not information can/should be removed or amended has to be assessed on a case by case basis.
    Also, the fact that adverse/negative information appears on your credit report – does not automatically mean that you cannot access more credit.

    Lucid Living has assisted hundreds of consumers to rehabilitate their poor credit record and successfully access credit.
    The time in which your credit status can be rehabilitated will depend on your particular circumstances and the specific information that is causing the problem.

    I recomend that you get in touch with a Lucid Living Credit Counselor to discuss your matter. Call them on 010 590 5617.

  21. Mr VCM says:

    Hi, i have a judgement against my name. What happens if i dont pay the amount within the 5 years? Does my name still get removed or is it simply put back onto the bureau until i pay the full outstanding amount?

  22. RandolphLucid says:

    Goo day

    The judgment will be removed from your credit report, five years after the date on which it was issued/granted.

    Credit bureau are legally prohibited from publishing judgments after the prescribed five year period.

    However the creditor’s rights in terms of that judgment (e.g. the right to recover the debt, by way of repossession or attachment of assets or garnishee order) will continue to subsist, after the five year period. The creditor can at anytime exercise their rights under the judgment.

  23. Nate108 says:

    Hi there.

    I need serious assistance. I was forced due to circumstance to resign from my job 3 months ago, and am in the process of finding a new job. I was on debt review, but have fallen behind in my payments and it will take 3 or 4 months to catch up on all the outstanding funds. I have recieved a notice that I have until the end of of December to pay a total of R15000 to cover a loan which was for that exact amount or face being black listed. Is there a way to avoid this? If not what are my options and how do I prevent myself from facing total financial failure? Also I have a car registered in my name which I donot want to have reposessed (it will just make things financially more difficult) should I have the car registered in some one elses name to prevent this from happening?

  24. Sarah says:

    Hi can you please help me on this one, im behind with payments of my edgars and total sports account and have applied for a job at absa but cannot be hired as i am blacklisted for both accounts. I cant afford to pay both accounts in full but can start paying it off immediately, how long is it gonna take to clear my name? When i start paying or when im done? Paying

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