Credit Amnesty 2019
Credit amnesty in South Africa is big news for over-indebted consumers.
This was previously approved by cabinet and will help indebted South Africans clean up their credit history.
The FAQs below should clear up any questions you may have on the credit amnesty 2019.
FAQ On Credit Amnesty
What does credit amnesty mean?
It will allow consumers to have any adverse information on their credit records being cleared and get more protection from lenders and credit providers.
How to apply for credit amnesty
You won’t need to apply to have adverse information cleared from your credit record as there is no process that consumers need to follow.
Whilst the removal of defaults and paid-up judgments will be cleared, you are urged to do a credit score check at least once a year to ensure that they’ve been removed and that there are no errors on your credit record.
What is credit amnesty South Africa?
A credit amnesty was implemented by the government from April 1, 2014 and gives indebted consumers a new start with a clean credit record. It also prevents this information being shared with credit providers, retailers and employers.
Do I qualify for credit amnesty?
Of the 28% of consumers who may qualify, 15% of these will definitely as they fall into the adverse listing category which means they have defaults, whilst a further 12% may also qualify for credit amnesty as they have judgments and admin orders on their credit records.
Why was a credit amnesty introduced?
As South Africans are so heavily in debt, the government exercised its power by effecting changes to the National Credit Act to help alleviate the situation.
Will my debt be written off under the credit amnesty?
No, credit bureaus will have to remove adverse credit information about you but your outstanding debt remains payable.
Unemployed and in debt what to do in South Africa
For people who are over-indebted and unemployed, you may get relief from the Debt Relief Bill that was recently passed and allows certain consumers to have all of their debt written off.
Can I still be blacklisted after having my judgements removed by the amnesty?
Yes, you will need to settle all your outstanding debts to avoid being blacklisted again. However, if you’re struggling to pay your debt you can approach a reputable debt counsellor who will place you under debt review to get restructure an affordable re-payment plan.
Conclusion On the Credit Amnesty South Africa
Lastly, don’t forget to request your free Clearscore coza, Transunion or Experion credit check every year.
This is to ensure that there are no errors and that you maintain a high credit score of over 700 which will give you access to cheaper credit at lower interest rates.
Furthermore, if you notice that the information on your credit report has not been removed, you can contact the office of the Credit Ombud (www.creditombud.org.za/) for free assistance on 0861 66 28 37.