The Department of Trade and Industry published a notice, setting out the process to be followed to ensure people who have paid their debts are no longer blacklisted.
This has prevented many from finding jobs, rental accommodation and access to credit.
The credit bureau statistics show that half of the 21-million credit active South Africans are credit impaired.
Minister of Trade and Industry Rob Davies said, “You have to pay your debt back, but we do not think the current system is adequate to prevent reckless lending and to protect individuals who are affected.”
In the future, people who have paid their debts would be automatically removed from the credit bureau records.
“We need to clear the slate as we introduce a new system through the National Credit Amendment Bill,” said Davies.
The notice gives credit bureaus two months to clear their records of people who have paid their debts and have been adversely classified as ‘slow paying’, ‘absconded’ or ‘not contactable’.
All Paid up judgements to be removed from credit bureau records starting April 1.
