Credit information is kept by the credit bureau to have historical records of payment behavior. This information also assists creditors to determine whether a person qualifies for credit based on their payment behavior patterns and the interest they should be charged.

BALANCE AND FAIRNESS

It is important to provide creditors with the relevant information to make decisions on providing credit. It is also important that consumer be given fair retention periods which allow for rehabilitation and repair during this time.

TYPES OF INFORMATION

Payment History

Payment profile information involves the sharing of account repayment history among Credit/Service Providers. Credit/Service providers automatically submit both negative and positive repayment information every month, which is stored by the Credit Bureau.

When you sign a credit agreement or any other contract, there is usually a clause where you agree that the Credit/Service Provider can access and use your personal credit history kept by the Credit Bureau as part of their decision-making process.

You also agree that if they allow you to open an account or give you a loan that they can submit information about your payment behavior to the Credit Bureau. This will allow other Credit/Service Providers, when you apply to in future, to assess how well (or how badly) you manage your debt.

Your information is submitted automatically, and a Credit/Service Provider is not required to send you a special notification before submitting this monthly data.

If your minimum instalment due is paid on time, every time, creditors can see that you keep your promises and will more likely offer you credit.

Payment history information can be kept on your credit record for up to five years, even if you close an account. However, older (negative or positive) information becomes less relevant as time passes. If you keep up to date with your current accounts, your payment profile is a true reflection of your payment behavior over time and is one of the most important factors in determining your credit score.

The Credit/Service Providers who submit payment profile information are Banks, Non-Bank Lenders, Retail stores, Furniture stores, Cellular Service Providers, Insurance Providers and other Credit Bureau subscribers.

Payment profile information displayed on your credit report can be incorrect if, for example, it says you were in arrears but you know you actually paid on time that month, or you have closed or paid up an account but it still shows a balance due.

You can dispute the information on your credit report if you believe it is not valid and can prove that it isn’t.

Default listings – one to two years

Also known as “adverse classifications”. Default listings are proactive decisions by a Credit/Service Provider to report a consumer’s failure to pay a debt to the Credit Bureaus.

’Defaults’ displayed on your credit report, as with any negative indicators, will bring down your credit score and make it difficult for you to obtain new credit.

Notification in terms of the Banking Act

The Reserve Bank requires that a notification of this kind of listing is sent to you at least 20 working days before the listing is reported to the Credit Bureau.

This notification will be sent using the preferred communication method you chose when you signed the original agreement example e.g. post, email or SMS.

If you dispute a default listing by claiming that you were not notified by the Credit/Service Provider, they will have to prove that the notification was sent to you timeously. You also have a responsibility to ensure that your address and contact information is update.