CREDIT BUREAUS: CAN I BE BLACKLISTED?

There is no such thing as a black list. It simply means that there 
is negative data on your credit report that is hosted at a Credit 
Bureau. This negative data can be anything, from a plain collection 
on one of your loans right through Judgment data or even Debt review.

This negative data will have an impact on your ability to get loans 
or open retail accounts as the credit provider will see this negative 
behaviour towards your current credit as a potential way that you will 
handle their loan; if granted.

A Credit bureau is an organisation that keeps a record of your credit 
information. Your credit record shows how you manage your debts and is 
used by credit providers and moneylenders to decide if you can afford 
to borrow money or pay back a new loan.

The National Credit Act says each credit bureau must be registered 
with the National Credit Regulator – who decides how your credit 
information can be used and who can see your credit record.

What is the role of a Credit Bureau?

When you take out your first loan with a credit provider, you 
have to fill in a form that asks for consumer credit information 
– including your credit history, financial history, education, 
employment and identity details. This information, and the details 
of the loan, is given to a credit bureau that then puts together 
credit report.

What are your rights regarding a Credit Bureau?

* To be told that a credit provider intends to report negative 
  information on you to a credit bureau 20 working days before they 
  do so
* To get a copy of your credit record from a credit bureau when you 
  ask for it – you can get one free record each year but may be 
  charged a small fee for further records
* To challenge information kept by a credit bureau if you are unhappy 
  with it
* For your information to be kept confidential, and for it to be used 
  only for the purposes that are allowed

How can your credit information be used?

* To decide whether or not you can afford credit
* To investigate fraud, corruption or theft
* To consider you for employment in a position that requires trust, 
  honesty and the handling of cash or finances

References:

* http://www.legal-aid.co.za/selfhelp/?p=750
* http://www.maxlaw.co.za/faqs/#toggle-id-4

This article is a general information sheet and should not be used or 
relied on as legal or other professional advice. No liability can be 
accepted for any errors or omissions nor for any loss or damage arising 
from reliance upon any information herein. Always contact your legal 
adviser for specific and detailed advice. Errors and omissions excepted 
(E&OE)

SOURCE:  NGL Attorneys