Credit amnesty doesn’t apply to debt
JOBURG - Consumers have been cautioned about government's approval of a credit information amnesty.
The approval means that adverse information held by credit bureaus would be deleted.
TPN credit bureau managing director Michelle Dickens said the amnesty applied to deleting adverse and judgement information on the credit bureau – but it does not mean that the obligation to settle any unpaid debt falls away.
“On the contrary, you will still be held 100 percent liable for any monies still owed.”
She said consumer spending drove the economy, adding that credit healthy and active consumers should be encouraged.
“The question is then raised as to what steps consumers can take to ensure their own credit health and protection.”
According to Dickens, consumer credit health in South Africa has been deteriorating steadily, and the country’s consumers have developed a worryingly irresponsible credit culture.
Dickens urged consumers to be aware of the consequences of impaired credit health and take steps to rectify the situation.
She said that the all-too-common ‘instant gratification’ mentality among South African credit consumers could be largely to blame for the high levels of indebtedness.
Dickens further advised consumers to take a more informed, restrained approach to credit consumption.
“It is wisest to only take out credit when you’re 100 percent sure you can handle the payments, with any and all monetary eventualities that may arise taken into account,” she said.
