CONTENTS

Preface About the South African Law Centre About the main Author Nicky Campbell About the contributing Author Stephanie Genia Boyce About the DIY Law Series About the DIY Credit Repair Toolkit Features of the DIY Credit Repair Toolkit include: Disclaimer 1. What is my right to apply for credit? 2. Why has my credit application been declined? 3. Am I entitled to reasons if my credit application has been declined? 4. What if I do not have a credit score? 5. What is a credit record? 6. How do I get my credit record? Credit Bureau Contact Details 7. Which credit bureau should I contact? 8. May I be charged for my credit record? 9. What is contained in my credit record? 10. What information cannot be recorded on my credit record? 11. Can a credit provider access my credit record without my permission or insist that I obtain a credit record? 12. What is my right to dispute incorrect information on my credit record? 13. How do I dispute incorrect information on my credit record? 14. What if I am dissatisfied with the outcome of a dispute? National Credit Regulators Contact Details Credit Information Ombudsmans Contact Details 15. Are there listings that can affect my credit application? 16. What is negative payment profile information? 17. What are default listings or adverse listings? 18. What are magistrate court judgment listings? 19. What if I was not aware that judgment was taken against me? 20. What are notice listings? 21. What are trace alert listings? 22. What is an administration order listing? 23. What is a sequestration notice? 24. What is a rehabilitation notice? 25. What is collection information? 11 11 11 12 12 12 13 13 13 14 14 15 15 16 3

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26. How does my enquiry history build? 27. What is a debt counselling notification? 28. How long does negative information remain on my credit record? 29. What should I know before I settle accounts that are listed on my credit record? 29.1 Accounts that you are not legally obliged to pay 29.2 Obtaining the current outstanding amount 29.3 Your right to obtain a statement detailing the settlement amount 29.4 What to do when you dispute details on a statement of account 29.5 I am struggling to obtain a statement of account Contact details for National Consumer Tribunal 29.6 Negotiating a reduced settlement amount 29.7 The induplum rule simplified 30. Can I get a default listing removed? 30.1 You did not receive written notification from the creditor Template Dispute Letter to send to the credit bureaux 30.2 The default listing relates to an account that has prescribed Template Dispute Letter to send to the credit bureaux 31. How do I update a default listing or adverse listing? 32. How do I remove a magistrate court judgment listing? 32.1 Where do I submit my rescission application? 32.2 How do I find out the name of the court that granted the judgment against me? South African Law Centres contact details 32.3 How do I find out the case number under which the judgment was granted? 32.4 Who is the Applicant/Defendant? 32.5 Who is the Respondent/Plaintiff? 32.6 Who is the Respondent/Plaintiff when I am rescinding a body corporate judgment? 32.7 Who is the Respondent when I am rescinding a judgment taken by a company? 32.8 What happens if the court file containing details of my judgment listing is missing? 33. How do I put my rescission application together? 33.1 Notice of Motion Template Notice of Motion 33.2 Founding Affidavit Template Applicants Founding Affidavit 33.3 What if my judgment was taken against me and another person Template Confirmatory Affidavit 33.4 Consent Notice Template Respondent/Plaintiffs Consent Notice (Letter) Template Respondent/Plaintiffs Consent Notice (Affidavit) 33.5 Draft Court Order Template Draft Court Order 33.6 How do I commission my documentation? 33.7 How does the service and filing of my rescission application work? 33.8 When will my judgment be rescinded? 33.9 Appearing in court to attend to the rescission application

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33.9 Dress code and conduct in court 33.10 How do I process the removal of a judgment listing once the judgment has been rescinded? Template Rescission of Magistrate Court Judgment Checklist 34. How do I remove a high court judgment listing? 34.1 You have a bona fide defence to the judgment creditors claim and you have good reasons as to why you defaulted 34.2 The judgment was sought or granted in error 34.3 Special circumstances existed prior to the judgment being taken against you and the judgment creditor was aware of such circumstances 35. How do I remove a debt counselling notification? Template Clearance Certificate (Form 19) 36. How do I remove an administration order listing? 36.1 On the basis that you have paid up your debts 36.2 On the basis of your financial circumstances having improved 37. I have received a demand or summons for payment on an account. What must I do? 38. How should I deal with debt collectors? Contact details for the Provincial Law Societies of South Africa Contact details for the Council for Debt Collectors 38.1 How do debt collectors generally work? 38.2 What are my rights in the debt collection process? South African Law Centres contact details Contact details for the Provincial Law Societies of South Africa 38.3 How do I lodge a complaint against a debt collector? 38.4 What debt collection practices are unacceptable? 39. What if I have fallen behind on payments on my home? 40. What if I have fallen behind on payments on my car? 41. I have been asked to stand surety for someone. What should i know? 42. What do I need to know when cancelling my credit agreement before it expires? 43. What if I have been a victim of ID fraud? Contact details for the South African Fraud Prevention Services (SAFPS) 44. What do I need to know when dealing with the sheriff? Contact details for the South African Board for Sheriffs 45. Can I be denied a job on the basis of my credit record? Table of Contents Templates How to Use the Templates 31

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YOUR DIY CREDIT REPAIR TOOLKIT

You have the right to apply for credit. This right is given to every adult person, juristic person and association of persons. (Section 60 of the National Credit Act) Your credit application can be declined on reasonable commercial grounds that are consistent with the credit providers customary risk management and underwriting practice. (Section 60(2) of the National Credit Act ) This might be, for instance, if you cannot afford the credit that you have applied for. Your credit application can also be declined due to negative information contained in your credit record. Such negative information is colloquially referred to as blacklistings. There is no black list, only negative information contained in your credit record. CAUTION Check your credit records for any negative information that may be affecting your right to apply for credit.

1. WHAT IS MY RIGHT TO APPLY FOR CREDIT?

2. WHY HAS MY CREDIT APPLICATION BEEN DECLINED?

You have the right to request the reasons that your credit application has been declined. The credit provider must let you know the dominant reason that your credit application has been declined. (Section 62 of the National Credit Act) You also have the right to request reasons in the following instances:  You are given a lower credit limit than you applied for;  Your credit limit under an existing credit facility is reduced;  Your credit card or any other renewable credit facility that you have expires and the subsequent renewal of your credit card or credit facility is declined;  You are refused an increase in your credit limit for an existing credit facility that you have;  The interest rate charged on your credit facility is higher than you expected to pay. (Section 62(1)(a) (d) of the National Credit Act)

3. AM I ENTITLED TO REASONS IF MY CREDIT APPLICATION HAS BEEN DECLINED?

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CAUTION Your right to reasons does not oblige the credit provider to give you copies of your credit records. You need merely be advised that your credit application has been declined due to negative listings contained in your credit records. Further, the credit provider is not automatically obliged to give you reasons as to why your credit application has been declined you must specifically request such reasons from the credit provider!

If you have never made use of credit, you will not have a credit score. Before the National Credit Act became law, you could be denied credit merely on the basis that you do not have a credit score and therefore do not have a track record of being a responsible borrower. Today, a credit bureau is not allowed to draw a negative inference about, or to issue a negative assessment of, your creditworthiness on the basis that the credit bureau does not have any consumer credit information about you. (Section 70(2)(h) of the National Credit Act) A credit record is sometimes called a credit profile. Your credit record or profile represents your credit history. When printed, it can be called your credit report. Credit records contain personal information about you, any accounts you may have and how well you pay your accounts. CAUTION Credit providers take your credit record into account when processing any credit application you may make

4. WHAT IF I DO NOT HAVE A CREDIT SCORE?

5. WHAT IS A CREDIT RECORD?

You have the right to obtain a copy of your credit record from each registered credit bureau once a year at no cost or charge. (Section 72(1)(b)(aa) of the National Credit Act)

6. HOW DO I GET MY CREDIT RECORD?

To get your credit records you must contact the credit bureaux who may require a copy of your ID book, passport or drivers licence. You may also be required to fill out a form giving the credit bureau permission to release the information to you.

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Credit Bureau Contact Details Credit Bureau Contact Details Transunion ITC Credit Bureau 66 Tel: 0861 88 64Association Tel: (011) 463-8218 Email: queries@transunion.co.za Fax: (011) 463-8386 Disputes can be emailed to Email: enquiries@cba.co.za legal@transunion.co.za Website: www.cba.co.za Website: www.mytransunion.co.za Experian Tel: 0861 105 665 Fax: (011) 707-6700 Email: consumer@experian.co.za Website: www.experian.co.za XDS Tel: 0860 937 000 Fax: (011) 484-6588 Disputes can be emailed to disputes@xds.co.za Website: www.onlinexds.co.za Compuscan Tel: 0861 51 41 31 Fax: (021) 413-2424 Email: info@compuscan.co.za Website: www.compuscan.co.za

It is advisable that you get your credit records from at least two or three credit bureaux, as the information contained in your credit records could differ amongst the different credit bureaux. Companies can act as agents. With your permission, they may directly obtain your credit records from credit bureaux on your behalf. These companies may charge for this service. Many consumers use such companies for the sake of convenience. Your credit record may contain any of the following information:           

7. WHICH CREDIT BUREAU SHOULD I CONTACT?

8. MAY I BE CHARGED FOR MY CREDIT RECORD?

9. WHAT IS CONTAINED IN MY CREDIT RECORD?

Your identity number Your full names Your contact details Past and current addresses The number of children that you have Your marital status Your educational qualifications Your employment, professional or business history How well or how badly you pay your accounts Any current or previous credit agreements that you have or have had Whether you are under debt counselling
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Any credit applications that you have made Whether any of your creditors have taken enforcement against you Your past and current income Your assets, debts and any other matters relating to your financial means, prospects and obligations.

The following information may not be reflected on your credit record:     

10. WHAT INFORMATION CANNOT BE RECORDED ON MY CREDIT RECORD?

Race Medical history or status Religion or thought, belief or opinion Political affiliation Sexual orientation, except to the extent that such information is self-evident from the record of your marital status and list of family members  Membership of a trade union, except to the extent that such information is evident from the record of your employment information (Regulation 18(3) of the National Credit Act)

A credit provider must obtain your permission before accessing your credit records. Credit bureaus may only report or release your consumer confidential information (which includes your credit record) to you or to any other person that you have given permission to receive it. Without your permission, a credit bureau may only report or release your credit record as directed by an order of a court or the National Consumer Tribunal or to the extent permitted or required by other national legislation or provincial legislation. (Section 68(1)(b) of the National Credit Act)

11. CAN A CREDIT PROVIDER ACCESS MY CREDIT RECORD WITHOUT MY PERMISSION OR INSIST THAT I OBTAIN A CREDIT RECORD?

Further, a credit provider may not require or insist that you obtain or request your credit report from a credit bureau when processing your credit application or making a financial assessment. (Section 72(2) of the National Credit Act read with Regulation 18)

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You have the right to dispute incorrect or unknown information that is contained in your credit record. (Section 72 of the National Credit Act) CAUTION At first glance, you may think that some information is incorrect as you have settled the account and yet the listing still reflects what appears to be an outstanding or default amount on the account! An account may remain listed on your credit record even once the account is settled and the listing may continue to reflect the original default amount. For instance, where the listed account reflects as being a judgment listing, the fact that you settle the account in full does not result in the removal of the listing from your credit record. Even the judgment credit provider cannot request or demand that the credit bureaux remove the listing from your credit record. Similarly, an account listed as being a bad debt that has been written off does not necessarily mean that you do not have to pay the debt and that the listing should not remain on your credit record for the prescribed listing period!  You did not receive any written notification prior to the listing of a default on your credit record (such notice must be given to you at least twenty business days prior to the listing being placed on your credit record).  The account listed on your credit record has prescribed.  You have settled an account listed as a default on your credit record and the respective listing has not been updated to reflect that the account is settled.  Your payment profile or account history has not been updated in the last sixty days.  Your credit record shows that an enquiry has been conducted on your credit record and you did not give your consent to such an enquiry.

12. WHAT IS MY RIGHT TO DISPUTE INCORRECT INFORMATION ON MY CREDIT RECORD?

Some Examples of Valid Disputes

The dispute process is as follows:

13. HOW DO I DISPUTE INCORRECT INFORMATION ON MY CREDIT RECORD?

1. Submit details of your dispute to the credit bureau concerned. It is advisable that you contact the credit bureau initially to establish what their respective dispute process is as the administrative process differs slightly amongst the credit bureaux. 2. The credit bureaux may require a certified copy of your ID document and a copy of any Financial Intelligence Centre Act (FICA) documentation. 3. The credit bureaux have twenty business days to look into your dispute and this is done at no charge or cost to you. (Regulation 20(2) of the National Credit Act)
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