POLOKWANE – All your debt is paid off at this point, but your credit record shows that you are a “slow payer”. Is there any way you can have this removed from you record?
Being listed as a slow payer is not a new term or new form of blacklisting.
Being listed as a slow payer was already possible under the Consumer Affairs (Unfair Business Practices) Act 71 of 1988 where you could be listed as a slow payer with the credit bureau if you could not comply with your financial obligations in terms of an agreement.
The main difference between being blacklisted and being listed as a slow payer, is that you can only be blacklisted after legal action has been instituted and a valid judgment has been granted against you, whereas you can be listed as a slow payer at any time.
This position has been incorporated into the National Credit Act 34 of 2005.
When you have been blacklisted and settled the debt for which you were listed, you can apply to have the listing removed from the credit bureau where you were listed.
Being listed as a slow payer will not prohibit you from obtaining a loan or finance, but it will make it more difficult and have an impact on the amount made available to you.
To challenge the validity of the listing, you must contact the credit bureau concerned to raise an objection or lodge a complaint.
Once the complaint is received, the relevant party that listed you will be contacted to provide proof of your default and that the listing is indeed justified.
In reality, most complaints are dismissed at this point as the listings are usually done based on documentary proof and thus found to be valid.
If the bureau is unable to resolve the issue, you can refer the matter to the Credit Ombudsman.
The sad truth is that the above-mentioned processes can therefore be rather drawn out and often result in no change to your status and with the listing remaining on your record until your debt has been paid.
The message that lies here is that if you see you will not be able to meet your payment obligations, contact your bank to arrange a lower premium.
Advice courtesy of DDKK Attorneys.
