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Blacklisted in South Africa

Debt

Blacklisted in South Africa

This is a continuation of the post: (Link>>) 5 Signs that your debt is getting out of control

As mentioned in the previous post, I had a conversation with the man Rabbi Kasongo – a Senior Debt Expert working for Intelligent Debt Management.

My first question related to people who had uncontrollable debt. But what about people who could not get debt.. at all?

“What would it mean if I was blacklisted?”

Rabbi’s response:
“Okay. F
irst of all the word ‘’blacklisting’’ does not exist in the South African legal sense of things. It is an American term that is sometimes used to categorise a person based on their credit behaviour. But It is not in the (NCA) National Credit Act.

In South Africa, credit providers are only allowed to list a client on the credit bureau as:

A. Non payer (someone who has objected to paying his debts)

B. Bad payer (someone who hardly pays his debts or is seen as a bad debtor due to a high level of missed payments)

C. Slow payer (someone who made arrangements to pay less than originally agreed upon with a provider)

D. Judgement (when creditors take legal action against the person)

E. Default (when a person fails to meet the legal obligations to pay his debt)

F. Good payer (someone who constantly pays his debts)

So in this sense “blacklisting”, in South Africa, would be akin to someone being a bad payer or a ‘non-payer. This is a negative categorisation and would most probably result in you not being granted any credit, but this is by no means permanent.

Your credit report contains both negative and positive information on you. If you are declined for credit, you should request your credit report from an credit bureau. This would tell you why.

If you have been “black listed”, here are a few ways you can Improve your credit score

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Benjamin

Benjamin is an Actuary working at a major financial services firm. He has experience in the valuation, design and distribution of wealth and investment products. Benjamin is insatiably passionate about teaching and empowering minds. All views expressed are Benjamin's own and neither reflect nor are influenced by the views of affiliated companies.

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