Free Credit Repair

This free credit repair do-it-yourself toolkit recognizes that there is no reason why you cannot simply fix your own credit record and that doing this would not cost you anything but your time. Free credit repair is an option people should be encouraged to take as enlisting the services of a lawyer is not always essential.

It will allow you to successfully repair your own credit record as it provides you with clear and simple guidelines on how to fix it. There are no tricks to repairing your credit record – only knowledge of the process and how it works.

In this article, we will be answering a series of questions we normally receive. Take time, read it through and YES you can toggle to the table of contents above to get an answer to your situation.

WHERE DO I STAND & WHAT ARE MY RIGHTS WHEN I APPLY FOR CREDIT IN SOUTH AFRICA?

You have the right to apply for any credit, according to Section 60 of The National Credit Act. Every adult, legal person, and a group of people is entitled to this right.

WHY DO CREDIT PROVIDERS DECLINE YOUR CREDIT APPLICATION?

Your credit application can be declined in one of the following ways.

1. If you cannot afford the credit that you have applied for. (You will be unable to pay back the credit you have requested).
2. Negative information in your credit record may potentially cause your credit application to be rejected. (Read more about Blacklisting)

Read (Section 60(2) of the National Credit Act ) and always check your credit report for any negative information that may be affecting your right to apply for credit. (How to check all of your credit profiles & scores for free)

IF MY CREDIT APPLICATION HAS BEEN DECLINED, AM I ENTITLED TO ANY REASONS?

You have a right to request credit providers to provide you with reasons why your credit application is declined. The creditor is required to provide the main justification for rejecting your credit application. (See Section 62 of The National Credit Act)

Additionally, you have the right to ask for clarification if/when your credit application is declined in the following situations:

• Your credit limit is less than what you requested or applied for;
• There is a reduction in your credit limit under an active credit arrangement;
• Your credit card or other renewable credit facility expires, and the renewal of your card or facility is thereafter rejected;
• You are denied raising your credit limit for a credit facility you already have;
• You were also not able to pay the interest rate that was applied to your credit facility. (Section 62(1)(a) – (d) of the National Credit Act)

The credit providers are not required or obligated to send you copies of your credit information. You only need to be informed that your credit application was declined due to bad information or negative listings (defaults) in your credit records. Additionally, the creditor is not required to automatically explain why your credit application was rejected; you must actively ask them for this information.

WHAT IF I DO NOT HAVE A CREDIT SCORE?

If you have never made use of credit, you will not have a credit score. Before the National Credit Act became law, you could be denied credit merely on the basis that you do not have a credit score and therefore do not have a track record of being a responsible borrower. Today, a credit bureau is not allowed to draw a negative inference about, or to issue a negative assessment of, your creditworthiness on the basis that the credit bureau does not have any consumer credit information about you. (Section 70(2)(h) of the National Credit Act)

WHAT’S A CREDIT RECORD & CREDIT SCORE?

A credit record is from time to time known as a credit profile. Your credit file or profile represents your credit score history. whilst revealed, it is able to be known as your credit score file. credit score records comprise non-public facts about you, any debts you can have, and how well you pay your bills.

Credit providers take your credit record into account when processing any credit application you may make.

HOW DO I GET MY FREE CREDIT REPORTS?

You have the right to obtain a copy of your credit record from each registered credit bureau once a year at no cost or charge. (Section 72(1)(b)(aa) of the National Credit Act). In other words, every registered credit bureau must allow you to request a free copy of your credit report from them once each year.

You can get your credit reports in one of two ways.

1. Visit this page for free credit reports and scores.
2. Contact the credit bureaus, complete the necessary forms and submit the required documents.

How to Contact the Credit Bureaus

Credit Bureau Association
Tel: (011) 463-8218
Fax: (011) 463-8386
Email: enquiries@cba.co.za Website: www.cba.co.za

Transunion ITC
Tel: 0861 88 64 66
Email: queries@transunion.co.za Disputes can be emailed to legal@transunion.co.za
Website: www.mytransunion.co.za
Experian
Tel: 0861 105 665
Fax: (011) 707-6700
Email: consumer@experian.co.za Website: www.experian.co.za
XDS
Tel: 0860 937 000
Fax: (011) 484-6588
Disputes can be emailed to disputes@xds.co.za
Website: www.onlinexds.co.za
Compuscan
Tel: 0861 51 41 31
Fax: (021) 413-2424
Email: info@compuscan.co.za Website: www.compuscan.co.za

WHICH CREDIT BUREAU SHOULD I CONTACT FOR THE MOST ACCURATE AND UPDATED CREDIT REPORT?

It is advisable that you get your credit records from at least two or three credit bureaus, as the information contained in your credit records could differ amongst the different credit bureaus. We recommend the following credit bureaus for the most accurate and updated reports. (OUR RECOMMENDATION)

ARE CREDIT REPORTS FREE?

YES – GET YOUR CREDIT REPORTS AND SCORES FREE FOR LIFE HERE.

Note: Some businesses have the capacity to serve as agents. They may request your credit records directly from credit bureaus with your consent. These businesses can demand a fee for this service.

WHAT IS CONTAINED IN MY CREDIT RECORD?

Your credit record may contain any of the following information:

• Your identity number
• Your full names
• Your contact details
• Past and current addresses
• The number of children that you have
• Your marital status
• Your educational qualifications
• Your employment, professional or business history
• How well or how badly do you pay your accounts
• Any current or previous credit agreements that you have or have had
• Whether you are under debt counselling
• Any credit applications that you have made
• Whether any of your creditors have taken enforcement against you
• Your past and current income
• Your assets, debts, and any other matters relating to your financial means, prospects, and obligations.

WHAT DETAILS ARE UNALLOWABLE ON MY CREDIT RECORD?

• Race
• Medical history or status
• Religion or thought, belief or opinion
• Political affiliation
• Sexual orientation, except to the extent that such information is self-evident from the record of your marital status and list of family members
• Membership of a trade union, except to the extent that such information is evident from the record of your employment information (Regulation 18(3) of the National Credit Act)

CAN A CREDIT PROVIDER ACCESS MY CREDIT RECORD WITHOUT MY PERMISSION OR INSIST THAT I OBTAIN A CREDIT RECORD?

A credit provider must obtain your permission before accessing your credit records. Credit bureaus may only report or release your consumer confidential information (which includes your credit record) to you or to any other person that you have given permission to receive it. Without your permission, a credit bureau may only report or release your credit record as directed by an order of a court or the National Consumer Tribunal or to the extent permitted or required by other national legislation or provincial legislation. (Section 68(1)(b) of the National Credit Act)

Further, a credit provider may not require or insist that you obtain or request your credit report from a credit bureau when processing your credit application or making a financial assessment.
(Section 72(2) of the National Credit Act read with Regulation 18)

WHAT RIGHT DO I HAVE TO RESOLVE IMPROPER INFORMATION ON MY CREDIT RECORD?

You have the right to challenge any inaccurate or unreliable information that appears on your credit report.(See Section 72 of The National Credit Act)

Here are a Few Good Disputes Examples.

• You were not given any written notice before a default was recorded on your credit report (such notice must be given to you at least twenty-one business days prior to the listing being placed on your credit record).
• Your credit report includes an account that has been prescribed.
• You have paid off an account that was reported as a default on your credit report, but the listing has not been changed to reflect the settlement of the account.
• There hasn’t been a change to your account history or payment profile in the last 60 days.
• Your credit report demonstrates that an inquiry was made into your credit history despite your lack of consent.

HOW DO I FIX INACCURATE DATA ON MY CREDIT REPORT?

The following is the dispute procedure:

1. Send a detailed description of your dispute to the relevant credit bureau. The administrative process varies slightly among the credit bureaus, thus it is advised that you get in touch with them first to find out what their specific dispute procedure is.
2. A certified copy of your ID and any Financial Intelligence Center Act (FICA) documentation may be required by the credit bureaus. i.e proof of address.
3. The credit bureaux must investigate your dispute within twenty-one business days, and there is no fee or penalty to you.
4. If you apply for credit during this time, credit providers will be able to see that there is a dispute on your credit record but they won’t be able to access the disputed information because it is flagged on your credit record during the investigation period.

5. The disputed information must be erased from your credit record if the credit bureau has not discovered any credible evidence to support its retention after the twenty-one working day period has passed.
6. You must be given a copy of any convincing evidence that supports keeping the information on your credit report if it exists.
7. The challenged information will be reinstated on your credit record if there is convincing evidence in favor of keeping it.

WHAT SHOULD I DO IF I AM UNHAPPY WITH THE RESULTS OF A CREDIT BUREAU DISPUTE?

You can ask the National Credit Regulator to look into the situation if you are dissatisfied with how a credit bureau handled its examination of your dispute.
(See Section 72(4) of The National Credit Act)

How do you contact the National Credit Regulator with a complaint?

Send details of your complaint through email to complaints@ncr.org.za to make a regular complaint about a creditor or a credit bureau.
Email complaints about debt counseling to dccomplaints@ncr.org.za
Any complaint you submit to the NCR should be detailed in the form required, Form 29.

You can email NCR staff with any concerns or compliments regarding their performance in providing poor or good service to service@ncr.org.za
Call centre – 0860 NCR NCR (0860 627 627) or (011) 554-2600
PHYSICAL ADDRESS:
127 – 15th Road Randjespark Midrand

Additionally, you can ask the Credit Information Ombudsman to look into your complaint. The Credit Information Ombudsman helps consumers and companies who are adversely impacted by credit information, particularly those who believe they have been “blacklisted” unfairly or mistakenly.

The credit provider and the credit bureaus must abide by the Credit Information Ombudsman’s verdict or settlement, which can be reached through negotiation.

How do you contact the Credit Information Ombudsman with a complaint?

Send your complaint: via post: Postnet Suite 444 Private Bag 1 Jukskei Park 2153

Physical Address: Fernridge Office Park 5 Hunter Street Ferndale Randburg

Email – ombud@creditombud.org.za

Call Centre – 0861 OMBUDS (0861662837)

DO CREDIT REPORT LISTINGS HAVE THE POTENTIAL TO AFFECT MY CREDIT APPLICATION?

• Negative payment profile information
• Judgments – Magistrate Court or High Court judgments
• Trace Alert or collection listings
• Default, also known as adverse, listings
• Notice listings such as an administration order or a sequestration order or a notice of rehabilitation or a debt counselling/debt review notice
• Collection information
• Enquiry History

To find out if any of the aforementioned listings are made against you, check your credit history. Remember that the type of listing will determine the actions you must do to get rid of the undesirable listing.

WHAT IS A NEGATIVE PAYMENT INFORMATION ON YOUR CREDIT REPORT?

Any missed payments on any of your accounts will have a negative impact on your credit history. Credit information is not just bad information. Your credit history will be improved by timely payments on accounts. This payment history, both good and bad, is referred to as payment profile information or Credit Providers’ Association (CPA) data.

WHAT DO DEFAULT OR UNFAVORABLE LISTINGS ON CREDIT REPORTS MEAN?

Credit issuers may report bad or default information—also known as negative credit data—about your consumer behavior to the credit bureaus. Your credit report would include this bad credit information as a “adverse” or “default” entry.

Various Forms of Negative Information on Credit Reports.

• a judgment about your credit history. Information like “not reachable,” “absconded,” “slow paying,” “delinquent,” or “default,” for instance.
• If the listing is related to a credit provider’s collection efforts, the classification will be one of enforcement. For instance, details like “written off” or “given over for collection or recovery” or “legal action taken by a credit provider”

WHAT DO LISTINGS OF MAGISTRATE COURT JUDGMENTS ON CREDIT REPORTS MEAN?

A creditor may issue a summons if you are not making your payments as agreed upon to that creditor. The creditor would probably ask the court to enter a judgment against you if you don’t answer the summons. You can then be made to pay the creditor as a result of the decision because it is a court order.

WHAT IF I WAS UNAWARE THAT I WAS THE SUBJECT OF A MAGISTRATE’S COURT JUDGEMENT?

Even if you don’t show up in person for court on the day the judgment is issued, a creditor may nonetheless obtain a judgment against you.
If the creditor is unable to supply you with reliable evidence to support the judgment and you do not understand why it was rendered against you, you may speak with the court’s clerk to obtain copies of the court file. Both the case number and the name of the court where the ruling was made are necessary to know.

Unless you confess liability or make a payment, which gives the creditor a further three years to seek judgment from the date of the admission of liability, credit providers may only seek judgment within three years of the date you fell behind on the account.

The Prescription Act 68 of 1969, sometimes known as the “defense of prescription,” specifies how long debtors must wait before filing for judgment. In order to prevent the consumer from subsequently asserting the defense of prescription, credit issuers frequently obtain judgments against customers. A judgment is valid and legally enforceable for thirty years. The thirty-year window is measured from the day the verdict became a court order.

ON YOUR CREDIT REPORT, WHAT DO NOTICE LISTINGS MEAN?

An administration order, a sequestration order, or a notice of rehabilitation may be the subject of a notice listing.
A court-issued administration order against you will appear on your credit report and have a negative impact on any credit applications you submit.

A notice of sequestration will also appear on your credit report if your estate has previously been sequestrated, which will negatively affect your ability to seek credit. Your credit history also reflects the possibility that you were rehabilitated after being placed in sequestration.

Despite the notification of rehabilitation being listed on your credit report, credit providers may nevertheless regard your credit application negatively in practice.

WHAT DO LISTINGS FOR TRACE ALERTS ON YOUR CREDIT REPORT MEAN?

A credit provider that has requested to be notified when any updated contact information is added to your credit record may place a trace alert listing on your credit report if they have been unable to reach you due to the outdated contact information they have on file for you.

WHAT DOES AN ADMINISTRATION ORDER LISTING ON YOUR CREDIT REPORT MEAN?

If your obligations total less than R50 000, you may request to be put under administration with the court. Then, an administrator will be chosen to obtain from you a manageable sum of money on a regular basis, and this money will be disbursed to the different creditors covered by your administration order.

WHAT IS A SEQUESTRATION NOTICE ON YOUR CREDIT REPORT?

You or any of your creditors may ask the court to sequestrate your estate, which consists of everything you own and owe. The court must be convinced that sequestration of your estate will benefit your creditors and that it will ensure that they receive at least ten cents of every rand owing in order for it to be approved.
Sequestration has the effect of declaring your estate insolvent, forcing your creditors to accept payment of whatever your assets are worth in the settlement of your debts.

Your legal ability is compromised while you are in sequestration, and you must obtain the court-appointed trustee’s consent to engage in the majority of transactions.

A REHABILITATION NOTICE ON YOUR CREDIT REPORT MEANS WHAT?

You may occasionally ask the court to be rehabilitated if your estate has been sequestrated. A notice of rehabilitation will appear on your credit report if the application for rehabilitation is approved.

WHAT DOES INFORMATION COLLECTION MEAN?

Your credit history may reflect the fact that one or more of your accounts may have been turned over to debt collectors for collection. Additional details such as “did the consumer pay,” “have they fled,” and other questions may be included in this information.

HOW DOES MY CREDIT ENQUIRY HISTORY BUILD?

You authorize the creditor to access your credit history each time you request credit. This is shown on your credit report as a “inquiry.”

When a single person submits numerous credit applications in a short period of time, it may indicate that they are either trying to commit fraud or are looking for credit they cannot afford. Therefore, several credit inquiries may have a detrimental effect on any credit applications.

WHAT IS A DEBT COUNSELLING NOTIFICATION?

Your credit report will reflect any debt review or counseling that you are receiving. Any credit application you may desire to make will be adversely affected by this debt counseling note.

In actuality, you are not permitted to enter into any new credit agreements while in debt counseling.

Learn More About Debt Counselling Here

HOW LONG DOES NEGATIVE INFORMATION REMAIN ON MY CREDIT RECORD?

You can simply wait for the negative listings to be automatically deleted from your credit report if you decide that you do not want to go through the procedure of having them removed. Negative listings will be automatically erased from your credit report once a specific amount of time has passed, even if you haven’t paid the debts.

In other words, each unfavorable entry on your credit report only stays there for a certain amount of time. The data retention term, which is a finite amount of time, is measured starting on the day the relevant order was issued or the incident happened. (See Regulation 17(1) of The National Credit Act)

You should first determine when the data retention period for any negative listing on your credit report is set to expire because it varies depending on the sort of listing in the issue. Where the listing is about to disappear, you might not need to move through with any credit repair.

Remember that it typically takes two to three months to process the cancellation of a judgment and remove the corresponding entry from your credit report.

PERIODS FOR WHICH DATA IS RETAINED FOR LISTINGS ON YOUR CREDIT RECORD

TYPE OF LISTING	MAXIMUM PERIOD
ADVERSE LISTING – subjective classifications. E.g. “delinquent”, “default”, “slow payee”, “absconded” or “not contactable”	1 year
ADVERSE LISTING – enforcement action classifications. E.g. “handed over for collection or recovery”, “legal action” or “write off”	2 years
DEBT RESTRUCTURING	Until a clearance certificate is issued
JUDGMENTS	5 years, or earlier if the judgment is rescinded or, in some cases, abandoned
ADMINISTRATION ORDERS	Maximum of 10 years, or earlier if rescinded by a court
SEQUESTRATIONS	Maximum of 10 years, or earlier if a rehabilitation order is granted
LIQUIDATIONS (only applies to corporations and companies)	Unlimited period
REHABILITATION ORDER	5 years
ENQUIRIES	2 years
PAYMENT PROFILE	5 years
DETAILS AND RESULTS OF DISPUTES LODGED	18 months
ANY OTHER INFORMATION	2 years

The majority of negative or default information listings are of an enforcement nature and last for two years on a person’s credit report.

WHAT SHOULD I UNDERSTAND PRIOR TO SETTLING ACCOUNTS LISTED ON MY CREDIT REPORT?

If you wish to repair your credit record by removing any negative listings from it and you don’t contest any of the material on it, the first step is to determine whether you have a legal obligation to pay the account.

Accounts that you are not required by law to pay.

Legally, you are not required to settle a specified account. If the creditor has not obtained a judgment against you and you have not acknowledged any debt in connection with the disputed account, the account is deemed to have been prescribed. Additionally, you must not have made any payments toward the account in the previous three years. The account is judged to have been prescribed in law if all of the aforementioned requirements are satisfied. As a result, you are not required by law to repay the account.

We strongly advise you to carefully review any debt you are asked to pay to determine whether you are actually required by law to do so. In general, you may have a full defense to the claim if a creditor does not initiate civil procedures to recover a debt within three years of the date of your last payment.

A debt that is judged to have been prescribed under the terms of the Prescription Act 68 of 1969 will not be enforced by the courts, and this full defense is known as the defense of prescription.

You won’t be able to use the defense of prescription if you sign an acknowledgment of debt pertaining to the debt in question or make any payment toward the debt since you will be considered to have interrupted prescription and therefore be responsible for paying the debt.
If someone seeks payment from you for a debt that is more than three years old, you have the right to request to see either a copy of the judgment or proof that you acknowledged the liability within the previous three years.

If none of the aforementioned situations apply and you are required to settle the account by law, you must decide if you have the financial resources to do so.

Obtaining the outstanding balance at the moment

You should get in touch with the creditor or the attorneys of record for the creditor if you want to know the current outstanding balance for any account. If not, try to get hold of the contact information from the credit bureaus. Such information may frequently be present in your credit record.

Keep in mind that the balance that is displayed as outstanding on your credit report may not always correspond to the balance that is owed at the moment. If you haven’t made any payments on the account since it was listed, the current overdue balance is probably higher. Interest, legal costs, and other charges will be added to the existing outstanding debt.

The option to get a statement outlining the settlement sum.

A statement of the sum needed to pay off a credit agreement must be delivered by the credit provider without cost to the customer. The statement must be supplied to you by the creditor within five business days, and it may be given verbally, in person, over the phone, in writing, via SMS, regular mail, fax, email, or any type of electronic communication.(Section 113 of the National Credit Act)

For a period of five business days following the day the statement was sent to you, the settlement amount specified in the statement you receive is valid and enforceable. A statement on a credit facility is also not binding in the event that a credit is provided to or a charge is made against the account after the statement’s preparation date.

What should you do if you disagree with something on your account statement?

Any credit or debit listed in the statement of account that you receive may be contested in full or in part. (Section 111 of the National Credit Act)

You must provide written notification of your dispute to the credit provider in order to contest any debit or credit on the statement. After that, the creditor must send you a written notification outlining the disputed entry in reasonable detail or acknowledge that the entire or partial statement was incorrect and include the corrected entry.

Before processing your notice of dispute and explaining the disputed debit or credit in the statement you were given, a credit provider may not start enforcement procedures on the basis of a default resulting from the disputed entry.

I’m having trouble getting a statement of accounts from my creditors.

You may petition to the National Consumer Tribunal for an order ordering the credit provider to give the statement of account if one is not supplied to you within five working days. The National Consumer Tribunal has the authority to make any necessary orders to amend the statement that was the source of the dispute, as well as to decide the amounts in respect to which the statement was sought. (Sections 114 and 115 of the National Credit Act)

National Consumer Tribunal Contact Details

Tel: (012) 683-8140
Fax: (012) 663-5693
Email: Registry@thenct.org.za Website: www.thenct.org.za

How to negotiate a reduced settlement amount for your accounts?

Investigating if the creditor will accept a lower settlement amount as a final settlement of the account when you seek to settle any debt may be worthwhile. Many lenders will take a smaller payment as long as they at least get a portion of what you owe them.

When negotiating a lower settlement amount, you must let the creditor know that you are having problems paying the entire amount that they are now claiming, but that you are willing and able to pay a “lump sum” amount, so long as they accept it as the account’s final settlement. Additionally, let the creditor know that the “lump sum” amount is all you can manage to pay because you don’t have any other options.

If the creditor agrees to the lower settlement sum, you must request written confirmation of that agreement as soon as possible. Without a written contract, you might discover that paying more than the “lump sum” amount does not close the account and that you must instead pay the outstanding balance in the future.

In order to have the judgment listing deleted from your credit report before the data retention period for that listing expires, for example, if a judgment has been entered in relation to an account that you settle, you will still need to submit a rescission application. If the account has been settled using a compromised or reduced settlement amount, the creditor may refuse to agree to the revocation of the judgment in that case and may demand that you pay the difference between the settlement amount you paid and the full amount that was outstanding at the time of your settlement of the account in question!

You must get the creditor’s promise that they will agree to the revocation of the judgment in exchange for your paying a smaller settlement sum when you settle an account for which a judgment has been granted. Some lenders have a rule that prohibits them from agreeing to the revocation of a judgment when it relates to a debt that has been paid with a lower settlement amount.

What is the in duplum rule?

The in duplum rule, which is ingrained in our common law, states that interest ceases to accrue when the paid interest equals the capital still owed. The National Credit Act’s Section 103(5) extends the in duplum rule by stating that in addition to interest ceasing to accrue once the unpaid interest equals the outstanding capital, all other fees—including initiation, service, credit insurance, default administration, and collection costs—must not be greater than the balance of the principal debt due under the credit agreement as of the time of the default.

Before you settle any accounts, make sure that the National Credit Act’s in duplum regulation has not been broken. In other words, even if interest and other fees have been added to the outstanding capital amount, once you are in default with an account, you never have to pay back more than double the unpaid capital borrowed.

HOW CAN I HAVE A DEFAULT LISTING REMOVED FROM MY CREDIT REPORT?

In the following circumstances, you can request that a default listing be removed from your credit reports:

You didn’t get a written notice about the listing from the creditor.

A creditor must notify you in writing at least 20 working days in advance if they intend to report information about your account default to the credit bureaux. (Section 72(1) read with Regulation 19 of the National Credit Act)

If a creditor plans to share information about your account default with the credit bureaux, they must give you written notice at least 21 working days beforehand.

The default listing pertains to a prescribed account.

If you haven’t made a payment on an account for the past three years and a creditor hasn’t obtained a judgment against you for it, and you haven’t acknowledged the debt in any way, the account is said to have prescribed. You are not required by law to settle a specified account since it is not enforceable in court. (For further information on accounts that you are not required by law to pay, see paragraph 29.1).

Prescribed information cannot be reported to a credit bureau and, as a result, cannot appear on your credit record, in accordance with Regulation 19(5) of the National Credit Act.

If you opened an account with Edgars on 1 April 2000 and made your last payment on 1 November 2005, for instance, the debt would have prescribed or lapsed on 1 November 2008, meaning that at any time after that date, you can invoke the defense of prescription as a justification for not paying the debt.

WHAT IS THE PROCESS FOR UPDATING A DEFAULT OR UNFAVORABLE LISTING ON A CREDIT REPORT?

You can still demand that the creditor who listed the account as a default on your credit record update the listing to reflect that you have paid the account if you settle an account that is listed as a default on your credit record and the listing cannot be removed before the data retention period expires (as per paragraph 30.1)..

The default listing may be taken into account by future potential credit providers and adversely influence any credit applications you submit, but having the listing amended to reflect that the account has been paid enhances your creditworthiness to some extent.

A MAGISTRATE COURT JUDGMENT LISTING: HOW DO I REMOVE IT?

Only if a rescission application is submitted to the same court that granted the judgment may a judgment listing be removed from a credit report prior to the end of the maximum data retention period for a judgment listing. The creditor who obtained the judgment against you must agree to the revocation of the judgment before the court will do so.

A magistrate court decision may also be annulled on the grounds that the creditor wrongfully obtained it against you or that the court improperly upheld it. To establish either of the aforementioned, you would need to provide evidence in the form of an affidavit that properly outlines the grounds. It would be wise for you to speak with a lawyer in this situation so they can assess the particulars of your case.

Before putting up your Magistrates Court rescission application, you need to be aware of some fundamental information.

Where should I send my application for the recession of a magistrate’s court judgment?

The court that originally issued the judgment against you must receive your rescission application once you have paid the judgment debt and collected the necessary court documents, as described here.

I want to know the name of the magistrate court that handed down the judgment against me.

Your credit report includes this information under the heading “judgment” information.

You can confirm the name of the court and/or case number with the judgment creditor or their attorneys if you are unsure about it, or if it differs from the name of the court or the case number in the credit records you have got. As an alternative, you might get in touch with the clerks of the relevant courts, provide them with your case number, and ask them to validate the information.

How can I find out what case number the verdict was handed down in?

Again, your credit report has this information. The judgment creditor or their attorneys may also be able to provide you with this information.

On a magistrate court judgment, who is the applicant/defendant?

The applicant/defendant, who is typically the party against whom the judgment was rendered, is the one who plans to petition the court to have the judgment revoked. In other words, you are the petitioner or defendant in a case where a judgment has been rendered against you.

Who is the Respondent/Plaintiff?

The respondent/plaintiff in your rescission request is the creditor that obtained the judgment against you. As the respondent/plaintiff, the creditor may sign the permission to vacate the verdict. Alternately, the respondent/plaintiff may be represented by the attorneys of record for the credit provider when they sign the consent.

You must make sure that the attorney of record who signs the consent on behalf of the credit provider makes it clear in the document that he or she is still the credit provider’s attorney of record and has the mandate and authority to sign the document.

When I am challenging a judgment against a body corporate, who is the Respondent/Plaintiff?

You can ask any trustee of the body corporate in question to sign the consent notice, which means that any trustee of the body corporate may serve as the respondent or plaintiff in your rescission case. As an alternative, you might ask the legal counsel for the body corporate to sign the consent in place of the responder.

The court may occasionally demand proof that the individual who signs the consent as a trustee is actually a trustee of the body corporate in question. Therefore, it could be wise for you to get approval from the attorneys of record, or the actual attorneys that represented the body corporate.

When I am rescinding a company’s decision, who is the Respondent?

A managing director or company secretary may sign the assent to the revocation of the judgment as long as they specify in the affidavit that they are properly authorized to do so and are aware of the situation. Alternately, the company’s registered attorney may also sign the assent to the revocation of the verdict.

What takes place if the court file with my judgment listing’s specifics is missing?

The court clerk may then ask you to open a duplicate court file so that your rescission application can be heard if the court file is absent. You might need to file an affidavit in favor of opening a duplicate court file with the court clerk in order to open one. Find out the procedures for opening a duplicate court file in that particular court by speaking with the court’s clerk.

The sheriff’s return of service, which attests that the summons was served on you, and the copy of the summons that the creditor previously issued against you may both be requested by the court clerk. The credit bureaus can provide the aforementioned documentation since they frequently have it on file. Alternately, you might be able to obtain the paperwork through the creditor’s designated attorney.

WHAT DO I NEED TO DO TO COMPLETE MY MAGISTRATES COURT RESCISSION APPLICATION?

The following crucial supporting documentation is included in a revocation application:

• Notice of Motion and service page if required
• Applicant’s founding affidavit
• A consent notice or consent affidavit
• Draft court order

A HIGH COURT JUDGMENT LISTING: HOW DO I REMOVE IT?

A High Court decision may only be revoked under specific conditions. This is something you should bear in mind if you want to get a High Court decision off your credit report. For more information and assistance in assessing the merits of your case, you can get in touch with the South African Law Centre.

If the applicant or defendant receives the consent of the defendant or plaintiff, a Magistrate Court judgment may be revoked. The consent of the respondent/plaintiff to the revocation of the judgment is not a prerequisite for the High Court to retract the decision.

A few situations where a High Court ruling may be overturned include:

You have a legitimate defense to the judgment creditor’s allegations, and there are reasonable grounds for your default.

You may have sufficient grounds to withdraw the judgment if you have a legitimate defense to the respondent’s or plaintiff’s claim and good justifications for your payment default.

The decision was made or rendered incorrectly.

If it can be proven that a High Court judgment was requested or obtained in error, it may be revoked. For instance, prior to the judgment being entered against you, you had a payment agreement in place with the respondent/plaintiff or their attorneys of record regarding the payback of the account, and you actually followed through on it. It is not necessary for the payment arrangement or agreement describing the payment plan to be in writing; a verbal agreement may also be regarded as sufficient.

Prior to the judgment being entered against you, there were special circumstances, and the judgment creditor was aware of them.

You might have gotten in touch with the respondent/plaintiff or their attorneys of record when you started falling behind on the account for which the judgment was granted to discuss any unique circumstances in your case. You may have grounds to retract the judgment if the respondent/plaintiff promised or misled you into thinking that the legal process would be stopped and that no judgment would be rendered against you because of your unique circumstances.

For instance, your High Court decision may be related to the property you had held and later sold, and the respondent/plaintiff may have been made aware of the transaction before the judgment was actually granted. If this is the case, the respondent/plaintiff might not have been entitled to continue with a judgment against you.

HOW DO I REMOVE MY NAME FROM DEBT REVIEW?

You must ask for a clearance certificate from your debt counselor. The credit bureau must then get this clearance certificate in order for the information that you are receiving debt counseling to be deleted from your credit history. Or otherwise, apply for debt review removal by completing the below application form.

Learn More About Debt Review Removal Here or watch the below video.

HOW DO I GET A LISTING FOR AN ADMINISTRATION ORDER OFF MY CREDIT PROFILE?

An administration order can be revoked and then deleted from your credit record prior to the end of the data retention period for your administration order listing (see section 28, which outlines the data retention periods for each type of listing on your credit record) in the following circumstances:

Assuming you have paid off all of your debts

You can ask the court that issued the administration order to have it canceled or to have it set aside if you have paid off your administration order, which means you have paid off all of the debts that were covered by it as well as your administrator’s costs. The administration order listing must then be deleted from your credit record by sending the credit bureaus a copy of the court document proving the administration order’s revocation.

The administration order item on your credit report does not instantly disappear when you pay the administration order. In order to cancel your administration order if you have already paid it off, ask your administrator for a “section 74U certificate.” The section 74U certificate is provided to you by your administrator and is issued in accordance with the Magistrates’ Court Act. In essence, a “section 74U certificate” certifies that the debts that were once covered by the administration order have been settled.

Considering that your financial situation has improved

You can ask for the administration order to be revoked if your financial situation has improved from the time you were placed under administration. In accordance with section 74Q of the Magistrates’ Court Act, a revocation application would be made.

We encourage you to compare your current monthly income to your current monthly costs to see if you have a surplus that exceeds the sum that the court initially ordered you to pay to your administrator in order to demonstrate to the court that your financial situation has improved.

HAVE BEEN SENT A SUMMONS OR LETTER OF DEMAND FOR PAYMENT ON AN ACCOUNT. WHERE DO I START?

Do not disregard a summons if you cannot afford to pay it if you receive one for a debt (see paragraph 29.1, which deals with accounts that you are not legally obliged to pay). Your summons will specify how many days you have to reply.

If you are required by law to settle the account, you should consider making plans to pay the creditor the money they are owed or, if necessary, seek legal advice. You must let the court know that you plan to defend yourself if the creditor rejects the proposed payment arrangement. The next step is for you to submit a notice of intention to defend.

We encourage you to argue that the debt claimed against you has indeed been prescribed if you receive a summons for a debt that has already been prescribed. If you don’t, the court can mistakenly believe that the claim hasn’t been prescribed and grant judgment against you.

However, you are ethically allowed to settle a debt that has already been prescribed if you so want. As long as you make any payments toward the debt “without prejudice” and without acknowledging liability, you can settle the debt and complete your payment responsibilities without halting medication.

IN WHAT MANNER SHOULD I DEAL WITH DEBT COLLECTORS?

All debt collectors, whether they work for a business or independently, must register with the Debt Collectors Council as of August 11, 2003. As a result, if you have any doubts about a debt collector’s reliability, you can check to see if they are registered with the Debt Collectors Council.

Learn More on How to Deal With Debt Collectors Here

WHAT SHOULD I DO IF I FAIL TO MAKE PAYMENTS ON MY HOME LOAN?

The bank will often let you know if you are behind on your bond payments within a few days. The creditor shall notify you in writing of your default and make a suggestion that you refer the credit agreement to a competent consumer court, debt counselor, alternative dispute resolution agent, or ombudsman. (Section 129 of the National Credit Act)

Your intention in referring the credit agreement to any of the aforementioned parties is to have any disagreements over the credit agreement resolved or to establish a repayment plan that will bring the payments under the credit agreement current.

It is advised that you get in touch with the bank as soon as you start having trouble making your mortgage payments. Keep in mind that you can talk to the bank about creating alternate payment arrangements if you are unable to settle the arrears quickly. Alternatively, complete the below form to apply for debt counselling.

WHAT SHOULD I DO IF I FAIL TO MAKE PAYMENTS ON MY CAR REPAYMENTS?

Learn more about car repossession and the process here

I HAVE BEEN ASKED TO STAND SURETY FOR SOMEONE. WHAT SHOULD I KNOW?

Insofar as you consent to assume responsibility for that person’s debt repayment, standing surety for someone entails an indirect debt. Regardless of whether the individual you are serving as a surety for is making the required payments, this will appear on your credit report. A suretyship may therefore have an impact on your personal credit history and capacity to obtain credit in the future.

The debt you plan to stand surety for should therefore be within your own credit management guidelines.

Additionally, the creditor has the right to sue you if the person for whom you are acting as surety fails to make the necessary payments to it. Then, this will also be on your credit report, however, it may not appear on the credit report of the person for whom you stood surety.

It is crucial to confirm that the person for whom you are providing a surety can initially pay back the loan.

WHEN CANCELING MY CREDIT AGREEMENT BEFORE IT EXPIRES, WHAT DO I NEED TO KNOW?

Consumers have the right to revoke credit agreements at any time, providing they pay off the entire balance at the time of cancellation. You may do this with or without informing the creditor in advance of your plan to terminate the credit agreement early. You may also prepay the loan without giving the creditor any prior notification. You cannot be penalized by a creditor for making advance payment. (Section 125 of the National Credit Act)
Any advance payments must be accepted by the creditor, provided they are made before the payment is due. Such payments must be applied to the following, in the following order, and credited for the day of payment:

• To cover any outstanding or overdue interest fees
• To satisfy any due or unpaid fees or charges, and
• to lower the principal debt’s total amount.

WHAT SHOULD I DO IF I FALL VICTIM TO IDENTITY FRAUD?

You must notify the Southern African Fraud Prevention Services of any suspected fraud (SAFPS). Additionally, you have to report lost or stolen passports and ID booklets to SAFPS. A free protective registration service is provided by SAFPS that enables you to report any lost or stolen passports or ID booklets. This safeguards you against falling prey to impersonation, which may lead to accounts being opened in your name and then appearing on your credit report, lowering your creditworthiness.

South African Fraud Prevention Services (SAFPS) Contact Details

Tel: (011) 867-2234
Email: safps@safps.org.za SAFPS helpline number is 0860 101 248

WHAT SHOULD I UNDERSTAND BEFORE CONTRACTING WITH THE COURT SHERIFF?

Any creditor who you owe money to may file legal action against you to recover the debt if you fall behind on one of your payments. A sheriff can be required to deliver the legal process to you at the conclusion of such legal proceedings. A summons, notice, warrant, or any other type of court order may be a part of this legal procedure. In rare cases, the sheriff may be given instructions by the court system to seize any property you own to pay off the debt that is now being asserted against you.

The Minister for Justice and Constitutional Development appoints the sheriff, who serves as a neutral, independent officer of the court. The South African Board for Sheriffs regulates sheriffs, and pursuant to section 44(1) of the Sheriffs Act 90 of 1986, you may file a complaint against a sheriff with the South African Board for Sheriffs.

Complaints must be made in writing in the form of an affidavit by you, and you must provide all relevant information regarding the sheriff’s misconduct, including his name, office’s name, and address. You may also attach any supporting documents, such as witness statements, to your affidavit.

South African Board for Sheriffs Contact Details

Tel: (021) 462-3209
Fax: (021) 462-2099
Email: contact@sheriffs.org.za Website: www.sheriffs.org.za

Inappropriate behavior that could result in disciplinary action against a sheriff includes verbal or physical assault, bribery, corruption, theft, or dishonesty, sexual harassment, intimidation, or victimization.

You have the right to request identification when a sheriff approaches. Remember that, unlike a sheriff, a debt collector cannot seize or take any of your possessions. On the other side, a sheriff has the authority to seize and remove any of your property in order to satisfy a creditor’s claim against you.

By paying the sheriff, you can stop any of your possessions from being seized and then sold. You must get a receipt if you pay money to a sheriff and make sure that your payment is reflected on both the original and copies of the documents.

Keep in mind that the sheriff must always treat you with respect and is not allowed to attach or take away any necessities like food, bedding, beds, or your clothes. Sheriffs must also explain to you the details of any legal documents they deliver.

CAN MY CREDIT HISTORY BE USED AS A JOB DISCRIMINATOR?

A potential employer can reject your job application due to a bad credit history if you work in the financial services business or are in a position of trust. The job for which you are seeking must demand trust and honesty, or it can entail dealing with money or funds.
(Section 70(2)(g) of the National Credit Act read with Regulation 18(4)(c))

You cannot be denied job in any other professions besides those mentioned above based on your credit history.

Conclusion

Avoid falling for con artists who promise quick credit repair. You can (and should) fix your bad credit yourself if you want to.

In this article you have learned that:

• Which accounts do you have to pay, and which not
• How to deal with debt collectors and debt harassment
• What you can do about “blacklistings”
• What you can do about default/ad verse listings
• How to correct incorrect information on your credit record
• Why your credit application has been declined and what to do about it
• How to remove a judgment from your credit record How to remove an administration order listing
• How to become ITC clear