Blacklisted ?

The term "blacklisting" or "blacklisted" are terms widely used among South African consumers. However this is a misleading term, a designation that dates back to when credit bureaus only kept negative information. This was helpful to them in order not too grant more loans or credit to those they believed to be untrustworthy or a risk to the creditor.

Now credit bureaus hold both positive and negative data, and it surprises many people when it is revealed that between 50 and 60 percent of the data are positive entries.

What does ‘Blacklisted’ really mean?

Influenced by foreign trends, credit bureaus are now obliged to disclose both positive and negative information about credit users. This has enabled increased access to credit. Most people simply cannot believe that between 50 and 60 percent of the data kept are positive information. Then again, you may be part of the 40 to 50 percent who have negative information listed in their credit profile.

‘Blacklisted’ is not an actual legal term, even though it is widely used, what it really means is that, when you applied for credit or a loan from an institution, the credit report that they received from the credit bureau, contained too many ‘negative’ entries based on that institutions criteria, which they use as grounds to deny your credit or loan application. There is no such category as ‘blacklisted’ in financial records kept by credit bureau’s.

Seek out a Debt Counsellor

A standard credit or loan agreement will outline that you are required to pay an instalment of a certain amount by a specific date every month. The agreement will also obligate you to pay this amount monthly or if you fail to do so, your account will be marked as in arrears and possibly in breach of the agreement. This situation will inevitably lead to legal action to ‘recover’ the debt.

Should you be unable to make a payment, it is advisable to approach your credit provider to make arrangements before the due date, most credit providers will grant you some leniency as long as you can attain and maintain their desired payment threshold. However, if you have been unable to make several payments, seeking out a debt counsellor is the recommended recourse.

Debt Mate can help you by placing you under Debt Review, to rehabilitate your credit, by negotiating with your credit providers for more affordable instalments and interest rates. This will enable you to settle your debts, while protecting you and your assets until you receive a clearance certificate that will allow the removal of negative data in your credit records kept by the credit bureau’s.

Free Credit Check

The National Credit Act entitles every consumer to an annual free credit report. Debt Mate will contact the credit bureaus on your behalf and request a copy of your credit report. This will help you and our Debt Advisor to establish whether or not the information listed under your credit profile is accurate, and create a management plan to rehabilitate your credit rating.