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 to judgment data or even debt review.

This negative data will have an impact on your ability to obtain loans or open retail store accounts as the credit provider will view your conduct in this regard as an indication of how you will treat a potential loan.

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 repay a new loan.

The National Credit Act states that each Credit Bureau must be registered with the National Credit Regulator, which in turn determines 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 will have to fill out a form that asks for certain 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 which then compiles a credit report.

What are your rights regarding a Credit Bureau?

  • You have the right to be informed when a credit provider intends to report negative information regarding your credit record to a Credit Bureau, 20 working days prior to doing so;
  • You have the right to be provided with a copy of your credit record from a Credit Bureau when requested – you are granted a free credit report per annum, however, for any further requests you may be charged a small fee;
  • You have the right to challenge information kept by a Credit Bureau if you are unhappy therewith;
  • You have the right to have your information kept confidential, and for it to only be used for the permitted purposes.

How can your credit information be used?

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

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.

CREDIT BUREAUS: CAN I BE BLACKLISTED?
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