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Blacklisting and Blacklisted

blacklisted

Blacklisted

 What does it mean if you are blacklisted? In general, terms when you are blacklisted you are ostracised from certain groups and you have certain privileges taken away from you. This translates in the financial world, so if you are financially blacklisted means your credit is frozen, you are unable to get a credit of any kind.

The various Credit Bureaus in South Africa will report to credit providers if you have defaulted on any accounts. As Blacklisting is a frequently used term in South Africa we want to make it clear that there is NO register or a list of names of people who have been blacklisted.  

At the moment there are about 25 million people who have defaulted on their credit agreements and consumers who have defaulted on their credit agreements believe that they are now blacklisted in South Africa.  In short, it means that you have been listed by the credit bureaus as someone who struggled or is currently struggling to repay your debt. You have shown over a consistent period of time that you aren’t able to repay your debts. 

You won’t be able to apply for any other form of debt in South Africa. Lenders will search your record when you apply and realize that you are blacklisted. Lenders don’t usually offer loans to people who are blacklisted. But that isn’t the only thing it affects.

Not sure whether you have been blacklisted or not?  Contact us today, and we will do a complete investigation into your bureau profile.

 Is ITC Blacklisting Legal and what is a Credit Bureau?

In our other article named Blacklisting, there is no blacklist file or a consumer is not blacklisted. The term blacklisting implies that you have adverse information on your credit report at the various Credit Bureaus in South Africa. These adverse can be in the form of the following listings

  • Late payment collections
  • Judgment information
  • Debt counselling indicators
  • Defaults
  • Trace alerts

This adverse information will affect your capacity to get new credit, loans, home loans, vehicle finance or open retail accounts. This adverse behaviour towards your current credit obligations gets viewed by the credit provider and gets assessed in your ability to repay any new loan.

Credit bureaus are organizations that maintain a record of your credit information. Your credit record demonstrates how you will handle your debt obligations. Credit providers will use your credit report to decide whether you can afford new credit.

The National Credit Act requires that each credit bureau gets registered with the NCR. The NCR is a watchdog who decides how your personal information on the credit bureaux gets used.

As there is no blacklisting file out there the credit bureau has an obligation to document all good and bad information in order for credit providers to make informed decisions.

If there is no blacklisting then what is the role of a Credit Bureau?

Credit Bureaus are organizations that gather credit histories, document it and keeps track. Credit bureaus play a major role in assisting companies and banks to decide whether a consumer applying for credit or a loan is going to be able to pay back the cash they borrow.

In South Africa the main Credit bureaux are

  • Compuscan
  • Experian
  • XDS
  • TransUnion

What are Your rights regarding a Credit Bureau?

  • To get a copy of your credit report when requested.
  • You are entitled to Confidentiality
  • 1 free credit report a year
  • You have the right to challenge any information held at the bureau
Blacklisted companies in Johannesburg

Blacklisted companies in Johannesburg

Blacklisted companies in Johannesburg

The number of blacklisted companies in Johannesburg and finding whether the person you are dealing with is blacklisted or not can sometimes help in your dealings with them. Blacklisted companies find it difficult to get credit and this problem extends into ay financial service. If you are one of the blacklisted companies in Johannesburg then a credit company may be able to help you. Credit companies have professionals dealing with issues such as blacklisted companies in Johannesburg.

What does BLACKLISTED and ITC Blacklisted mean?

The most prevalent question consumers ask when they get declined for credit is, am I Blacklisted? These words are still used among South African customers. Blacklisting, blacklisted or blacklist is false words, a category dating back to when only negative information got kept by the credit bureaux. Now credit bureaux will have both favourable and negative information, the combination of which proved useful in anticipating consumer’s future behaviour. Now that the bureau reports on both positive and negative information the term blacklisted is not true

The good news is that there is no blacklist and there is no blacklisting. In this article, we will give you the true reasons why your credit got declined.

When applying for any type of credit, the credit bureaux TransUnion, XDS, Compuscan and Experian will only report on factual information about your credit life. Credit providers will have access to this information and they, in turn, will base their decision on this factual information. The credit bureau will not only show negative information but will also report on the good information in order for credit providers to make an informed decision whether to grant or decline credit.

Each Credit provider will have their own set of criteria for approving or declining a credit application. When it comes to approving credit facilities, some businesses are more stringent than others, and some may have more relaxed requirements. Credit providers will have to do affordability assessments and you might get declined with a perfect credit report. The myth of blacklisted or blacklisting is therefore no longer relevant. New credit facilities get declined if you are not able to afford the new credit facilities.

As you can see there is no blacklist out there or you cannot be blacklisted. Such a list does not exist

The major reasons credit application gets declined

  • Affordability
  • Not making payments to existing credit applications on time
  • Low credit score
  • Having too much credit which will impact on affordability
  • Judgements, default and debt counselling indicators

We will publish further articles about the above reason in more detail.

Contact us to assist with credit clearance, debt counselling or if you need a copy of your credit report

For more information Request a Call Back or Contact Us

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