1,370 cases of ID Theft had been reported by the end of April. The category of crime surged from 3,327 cases in 2012 to 3,873 last year, and the figure is expected to continue to soar this year.
“As anticipated, banks have adjusted their credit underwriting to account for the effect of the credit amnesty” said Advocate Kate Thambiran, Managing Director of LUCID Clear Credit, a credit rehabilitation firm.
“People are under the impression that banks will no longer have any adverse credit information against their names – this is simply untrue,” says Kate Thambiran, MD of LUCID Clear Credit.
De Kock of Wesbank says that one of main reasons vehicle applications are declined is because of the applicant’s credit report.
The error rate of credit reports will remain high, as long as these bureaus lack an incentive to clear these errors.
Wu’s advice to consumers: “If you do have an error, get an attorney. That’s the only time the credit bureaus take your seriously.”
These days having a bad financial reputation also jeopardises your chances of finding a job.
President Barack Obama said in a statement to the Dispatch that his administration will make regulating the credit-reporting agencies a priority. “We must continue to fight for an economy where everybody plays by the same rules, where consumers are protected,” Obama wrote.
The debt collectors threaten to report motorists with overdue accounts to the credit bureau – warning this could “negatively affect your personal credit report”.
With the prospect of a wedding, honeymoon, new home and perhaps even starting a family to pay for, building a new life together can be an expensive business, so it is vital that couples know where they stand financially.
Given that backdrop, some argue that employers should hire based on skills and qualifications and not credit report histories. Those in the job market have plenty of obstacles right now and should not have to try to defend the fact that they missed payments on bills.