How to de­al with being blacklis­ted

George Herald - Southern Cape Property Guide & Auto Dealer - - Property Guide -

If a pro­specti­ve ho­me­o­w­ner has not kept up to da­te with their cre­dit bu­reau re­ports, they may be in for a sur­pri­se w­hen they ap­ply for fi­nan­ce. Ac­cor­ding to A­dri­an Gos­lett, re­gi­o­nal di­rec­tor and CEO of RE/MAX of Sout­hern A­fri­ca, a lar­ge num­ber of po­ten­ti­al buy­ers are re­fer­red by their e­sta­te a­gents to at­tor­neys if they ha­ve a blacklis­ting a­gainst their na­me that is pre­ven­ting them from obtai­ning a bond.

Lis­ting with cre­dit bu­reaus

Gos­lett says a­nyo­ne who has e­ver ap­p­lied for cre­dit will be lis­ted with the va­ri­ous cre­dit bu­reaus. Any cre­dit pro­vi­der that subscri­bes to a cre­dit bu­reau will ha­ve access to the ap­pli­cant’s cre­dit his­to­ry. The ma­jo­ri­ty of com­pa­nies and fi­nan­ci­al in­sti­tu­ti­ons as­sess their risk ba­sed on the in­for­ma­ti­on pro­vi­ded by the cre­dit bu­reaus. If t­he­re is any ne­ga­ti­ve in­for­ma­ti­on on the ap­pli­cant’s cre­dit his­to­ry, it is highly un­li­ke­ly that they will be ap­pro­ved to re­cei­ve fi­nan­ce.

This emp­ha­si­ses the im­por­tan­ce of checking one’s cre­dit re­ports on an an­nu­al ba­sis.

“In so­me in­stan­ces, the buy­er has al­re­a­dy been ho­me-shop­ping and found the ho­me they want to buy, on­ly to be tur­ned a­way by the bank be­cau­se of a blacklis­ting a­gainst their na­me. It is pos­si­ble for the buy­er to recti­fy the si­tu­a­ti­on and cle­ar their na­me so that they don’t lo­se the pro­per­ty to a­not­her buy­er. Ho­we­ver, this will de­pend on the blacklis­ting a­gainst their na­me,” says Gos­lett. “Re­mo­ving a blacklis­ting can be an ar­du­ous, dra­wn-out pro­cess which dif­fers from one ca­se to the next, de­pen­ding on the ci­r­cum­stan­ces.

How long the pro­cess will ta­ke to recti­fy will de­pend on the par­ties in­vol­ved, ty­pe of blacklis­ting and pos­si­bly the courts, in the ca­se of a judg­ment.”

De­fault lis­ting

Ac­cor­ding to Gos­lett, a de­fault is a lis­ting of a par­ty who has fai­led to pay a cre­di­tor an out­stan­ding a­mount. A de­fault or ad­ver­se lis­ting will re­main on so­meo­ne’s cre­dit re­cord for two y­e­ars. If the debt has been sett­led, a re­quest can be ma­de by the cre­di­tor to the bu­reaus to a­mend the lis­ting to re­flect that the out­stan­ding debt has been paid in full. “As a gol­den ru­le, w­hen sett­ling an out­stan­ding debt with a cre­di­tor that has lis­ted a de­fault a­gainst you, obtain in wri­ting that they will a­mend or re­mo­ve the lis­ting. It is al­so ad­vi­sa­ble to seek le­gal ad­vi­ce from a spe­ci­a­list con­su­mer law practi­ti­o­ner who can pro­vi­de gui­dan­ce and a cle­a­ran­ce ser­vi­ce,” he ad­vi­ses.

Jud­ge­ment

A judg­ment is mo­re com­plex than a de­fault lis­ting, as it is a court or­der com­pel­ling the de­faul­ting par­ty to pay a debt. A ma­gi­stra­te’s court will de­al with mat­ters up to R100 000, whi­le any debt that ex­ceeds R100 000 will fall un­der the ju­ris­dicti­on of the High Court. If the debt is not sett­led, it will re­main on the cre­dit pro­fi­le for fi­ve y­e­ars be­fo­re it is au­to­ma­ti­cal­ly re­mo­ved.

In or­der for the judg­ment to be re­mo­ved from a cre­dit pro­fi­le be­fo­re the fi­ve y­e­ar pe­ri­od has lap­sed, the new Cre­dit A­mend­ment Act Re­gu­la­ti­ons pro­vi­des that the debt must first be sett­led. On­ce sett­led, an at­tor­ney can then ap­ply to ha­ve the judg­ment res­cin­ded. The cre­di­tor will need to pro­vi­de their con­sent be­fo­re the judg­ment can be res­cin­ded. Keeping a cle­an cre­dit re­cord is less cos­t­ly and ti­me-con­su­ming than de­a­ling with ad­ver­se cre­dit in­for­ma­ti­on. He­re are tips to a­void blacklis­tings:

Re­ad all clau­ses be­fo­re sig­ning a con­tract with a cre­di­tor

Ma­ke re­gu­lar pay­ments to your cre­di­tor by the se­venth of e­ach month

Keep a list of all cre­di­tors, the ba­sis of cre­dit and a­mounts to be paid

Keep a re­cord of all pay­ments ma­de to cre­di­tors

If you re­lo­ca­te, no­ti­fy all cre­di­tors of the chan­ge of ad­dress

At­tend to all cor­re­spon­den­ce from cre­di­tors or their le­gal re­pre­sen­ta­ti­on

If you are u­na­ble to pay your cre­di­tors, ma­ke a writ­ten ar­ran­ge­ment to re­struc­tu­re the pay­ments w­he­re pos­si­ble.

P­ho­to: www.debt­bud­get.co.za

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