Credit Market Activity Suggests The Need For Caution

Staff Writer @ Lucid Living

Nomsa Motshegare, Acting CEO of the National Credit Regulator (NCR), said earlier this month that the credit bureau statistics reported for the quarter ended December 2011 suggest the need for caution.

Although seasonal factors may be contributing to overall credit performance, the NCR is mindful of the current trends and activity levels reflected in the statistics for this reporting quarter. This will be closely monitored to assess whether the increases evident in impaired performance categories is likely to prove consistent.

As at the end of December 2011, credit bureaus had records for 19.34 million credit-active consumers, an increase of 1.3%
over the 19.10 million of the previous quarter.

Consumers classified in good standing increased by 142,000, to 10.41 million consumers, an increase of 1.4% quarter-on-quarter and 5.2% year-on-year.

The number of consumers with impaired records (3 or more months in arrears or with blacklisting or judgments), increased by 100,000 to 8.93 million, from 8.83 million in the previous quarter. The number of impaired accounts increased by 366 000 to 16.91 million, from 16.54 million in the previous quarter.

The number of credit reports issued to consumers increased to 103,403. Of the total credit reports issued, 81.8% (84,561) were issued without charge, and the remaining 18.2% (18,842) were issued with charge.

There were 8,826 disputes lodged on information held on consumer credit records for the quarter ended December 2011, which was an increase of 24.8% quarter-on-quarter.