How Long Does Blacklisting Last in SA and Other Debt-Related Questions

In South Africa, the credit sector is well-established and keeps track of people’s and companies’ creditworthiness. There are times when people do not pay their debts on time, which can result in blacklisting and other negative effects. In this post, we’ll look at some often asked concerns concerning debt in South Africa, like how long a debt is listed on a blacklist for, whether it ever expires, what qualifications debt collectors need to have, and whether they can use threats against debtors. How Long Is Blacklisting Persisted With in SA?

When a debtor misses a payment, the creditor may notify one of South Africa’s credit bureaus, which adds the information to the debtor’s credit report. This record, also referred to as a “blacklist,” may negatively impact a person’s ability to obtain credit. In South Africa, a record is blacklisted for five years before it is erased from a credit report. The person can find it difficult to get credit or other financial services at this time. Does Debt Expire in South Africa, too?

In South Africa, debt does not expire, therefore creditors may still lawfully pursue payment even after a lot of time has passed. There are, however, time restrictions on how long a creditor may file a lawsuit against a debtor. According to the Prescription Act, for instance, the majority of debts have a three-year prescription period after which the creditor cannot file a lawsuit. However, if the debtor admits the obligation or makes a payment toward it, the prescription period may end.

Yes, debt collectors in South Africa are required to be licensed and registered with the Council for Debt Collectors. The purpose of this provision is to safeguard borrowers from dishonest or unethical debt collecting activities. A person must fulfill specific requirements and pass a criminal background check in order to register as a debt collector. Additionally, they must follow the guidelines and code of conduct established by the Council for Debt Collectors.

A National Certificate in Debt Recovery from an accredited organization is required before one may register as a debt collector in South Africa. After that, they have to submit an application for registration with the Council for Debt Collectors and present documentation of their credentials, identity, and criminal history. Before approving or rejecting the license, the Council will examine the application and determine its suitability.

No, a collection agency is not allowed to use coercive or unlawful debt collection tactics, including threats against a debtor. The National Credit Act stipulates rules for how debt collectors should act and forbids them from pursuing debts using intimidation, harassment, or threats. The National Credit Regulator or the Council for Debt Collectors can be contacted if a debtor believes a collection firm has breached their rights.

In conclusion, debt is a severe issue that can have an impact on a person’s finances and creditworthiness for a very long time. To safeguard oneself from dishonest or unethical tactics, it is crucial to understand the laws and regulations that apply to debt collection and credit reporting in South Africa. To manage your finances and prevent being placed on a blacklist, it is advisable to get advice from a qualified debt counselor or financial advisor if you are having financial difficulties.