The Department of Trade and Industry (the dti) will consult members of the public and stakeholders in Limpopo on the Removal of Adverse Credit Information Project at the City Library Activity Room, Library Gardens in Polokwane on Tuesday, 26 November 2013 from 14h00 - 16h00. Members of the media are also invited to attend the event.
The purpose of the consultation process is to solicit comments and inputs from consumers and stakeholders on the removal of adverse credit information from the profiles of those consumers who will qualify in terms of the proposals published in the Government Gazette No 36889 published by the Minister of Trade and Industry, Dr Rob Davies, on 30 September this year.
Adverse credit information includes classifications of information such as ‘delinquent’, ‘default’, ‘slow paying’, ‘absconded’, ‘not contactable’, ‘handed over for collection or recovery’, ‘legal action’, ‘write off’. The proposal also includes the removal of paid up judgements.
According to Dr Davies, the Removal of Adverse Credit Information Project is aimed at providing relief to consumers listed at the credit bureaus to access credit if they can afford it, as well as addressing other barriers that often exist as a result of adverse listings such as applications for employment and rental accommodation. A number of consumers’ access to credit is barred by adverse listing which is referred to irrespective of whether or not the financial position of a consumer has changed.
“The proposal is to remove all adverse credit information listings from the credit records of consumers. However, the payment profile information which reflects how an account is paid on a monthly basis will not be removed from the credit records of consumers through this process. The payment history information will allow credit providers to adequately assess the application against the risk, and price for risk appropriately,” says Minister Davies.
He adds that with proper affordability assessments and the retention of the payment profile information, credit providers will be able to ensure that consumers who are already over-indebted do not obtain more credit. These will also mitigate the risk of unhealthy surge in credit acceptances following the removal of adverse credit information.
“The proposal to remove adverse credit information will be beneficial to both consumers and the industry,” says Minister Davies.
Enquiries:
Sidwell Medupe
Departmental Spokesperson
Mobile: 079 492 1774
Tel: 012 394 1650
E-mail: MSMedupe@thedti.gov.za
Twitter: @the_dti
