ONE YEAR: Consumer Behaviors: e.g. delinquent, default, slow paying, absconded or not contactable.
TWO YEARS: Enforcement Actions: e.g. Legal action, write off, handed over for collection. The Reserve Bank requires the Credit Bureau to adhere to these retention periods, whether or not the debt has been repaid in full.
Besides registered Credit/Service Providers, defaults can be listed by any subscribers to the Credit Bureau, such as debt collectors or attorneys and often involve credit transactions from non-credit providers such as medical professionals, laboratories, gyms, schools, tradesmen, small businesses and anyone who has not received payment for goods or services.
JUDGMENTS – FIVE YEARS (unless PAID UP or RESCINDED)
Judgments are an order by a court allowing the Plaintiff (Credit/Service Provider or any other kind of Creditor) to recover a debt.
Judgments are not listed directly by the subscribers to the Credit Bureau. The Credit Bureau obtains this information from public records available from the courts themselves.
Because judgments are not a direct ‘listing’, there is no ‘notification requirement’ like with defaults and any individual or company can apply to the court to grant a judgment as a means of recovering an outstanding debt.
The process to be followed in terms the Magistrates’ Court Act and the High Court Act is:
NOTICES OF FINANCIAL STATUS
These are options to remove the following listings on your Credit Bureau Profile.
However, it is important that new debt is not incurred while you are in this situation, and therefore ‘NOTICE’ of your circumstances is displayed on your Credit Record.
ADMINISTRATION ORDER
Administration orders are listed on the Credit Bureaus for 10 years.
The only way to have the notice removed earlier is to have the Administration Order rescinded (cancelled) by the court.
You can send the rescission document to the Credit Bureau, who will remove the Administration Order listing upon verification by the Court or the Administrator.
SEQUESTRATION
Sequestrations are listed on the Credit Bureau for 10 years.
The only way to have the sequestration listing removed earlier is to be granted rehabilitation by the Court.
The sequestration listing is then removed and is replaced with a rehabilitation listing, which remains on your record for five years.
All credit information regarding debts which formed part of the sequestrated estate should also be removed from the Credit Bureau.
DEBT REVIEW NOTICE (ALSO REFERRED TO AS ‘DEBT RESTRUCTURE’)
A Clearance Certificate must be issued as per the Banking Act, an order given by Court or Tribunal. On receipt of a valid Clearance Certificate, the listing will be removed by the Credit Bureau.
RETENTION PERIODS
The Banking Act, sets out the kind of credit information that may be listed by the Credit Bureau and the maximum time (periods) that the information may be listed:
| Categories | Description of Credit Information | Maximum Retention Period |
|---|---|---|
| DISPUTE LODGED | The information on rejected information is displayed, however if the dispute was successful then it would be removed. | 6 Months |
| ENQUIRIES | All enquiries made for credit, insurance or employment. | One year |
| PAYMENT PROFILE | Factual information regarding the payment history of a consumer which is automatically submitted each cycle whether good or bad. | Five years |
| ADVERSE CLASSIFICATION | ||
| CONSUMER BEHAVIOUR (DEFAULT LISTING 1) | Consumer behavior includes delinquent, default, slow paying, absconded or not contactable. Removed once paid up. | One year |
| ENFORCEMENT ACTION (DEFAULT LISTING # 2) | Enforcement Actions include: Legal action, write off, handed over for collection. Removed once paid up. | One year |
| DEBT RESTRUCTURING | AS PER the NCA, an order given by Court or Tribunal. | Until a Clearance Certificate issued |
| CIVIL COURT JUDGMENTS | Including Default Judgments. | Five years |
| PAID UP; RES CINDED BY COURT; OR ABANDONED ACCORDING TO THE MAGISTRATES COURT ACT | ||
| ADMINISTRATION ORDERS | As per court order | Five years or until rescinded by Court |
| SEQUESTRATIONS | As per court order | Five years or until rehabilitation is granted, whichever comes first |
| LIQUIDATIONS | As per court order | Unlimited |
| REHABILITATION ORDERS | As per court order | Five years |