Hahn and Hahn is one of the few legal practices that prides itself in assisting people who have been blacklisted by Companies in order to repair their credit worthiness, under its Credit Bureau Clearance Division.
How long do Adverse Listings & Judgments stay listed against your name?
Having a bad Credit Record can have a devastating effect on your life. You can't buy the things you want, open a bank account or even get that job you have dreamed of. We are specialists at Credit bureau clearance and can help you.
Both individual people and companies can be black listed. To be blacklisted means that you have a bad credit record. This is probably because you have not paid a shop or other company to which you owed money or perhaps you did not pay them on time.
Being blacklisted can have a very bad effect on your life. If you are blacklisted you will probably find it very difficult to buy anything on credit or get any type of finance. It might even be difficult to open a bank account or get a job if you have a poor credit record. Even if you are able to get finance, it is likely that you will have to pay a higher interest rate or put down a large deposit. It is NEVER a good idea to be blacklisted and if you are, it is important to clear your name as soon as you can.
It is unfortunately very difficult to have your name cleared once you have a bad credit record. Even if you have a good excuse for not paying your debt, like you were retrenched or sick, it will not be enough to have you name cleared. Paying back the money that you owe is also no enough to clear your credit record.
Once you have been blacklisted you will have a bad credit record for anything from 2 - 10 years, depending on the type of listing that you have against you, but even after this period of time a judgment can be issued against you if you have not paid the money that you owe.
However, paying back the money that you owe to your Creditors is also not enough to have your name cleared from the credit records. You still need to seek help from legal practitioners to assist you in approaching your creditors for consent to removing such listings. Hahn & Hahn Attorneys should be your legal practitioner of choice in such circumstances, as we have years of experience in assisting people in improving their credit ratings.
Different listings can be recorded at a Credit Bureau and these include but not limited to the following:
A. ADVERSE LISTINGS
Adverse Listings are recorded at the credit bureau, if you opened up and account or owed your creditors money and failed to pay them. Such listings usually remain on the records for a period 2 years from the date of the listing, which affects your credit rating.
It is important to note that, companies could insert any adverse listings onto your credit profile in forms of;
A Bank default listing is a type of adverse listing recorded by a financial institution (Banks), in cases where you owed money to the bank and failed to pay.
A Collection default listing is a type of adverse listing recorded to credit bureaus by certain creditors, in cases where your accounts were outstanding and later handed over to a Collection Agency for collection.
Provided the debt is settled we can arrange with the creditors for the listing to be removed from your credit record as part of the credit repair process. Alternatively, we can arrange to have the listings amended at the credit bureau as fully paid up, which also improves your credit ratings.
However, certain companies, including but not limited to Edgars, Foschini, Truworths, Woolworths, are members of the Consumer Credit Association (CCA), and insist that they would not remove default listings even when the account is fully paid. Your records would reflect that, "account has been paid-up" but an adverse still listed under your name. In essence, CCA members only instruct the Credit Bureaus to update your records rather than removing the listing.
We at Hahn & Hahn Attorneys are against this view point by the CCA members and try to work together with such creditors towards settlement of accounts and removal of name from credit bureau. We therefore contact your creditors to obtain an undertaking that they would remove such listings on settlement of accounts.
In addition, it may be necessary for clients to complete supporting questionnaires and affidavits which could enable us approach creditors with a better understanding of the circumstances pertaining to default listings. Having completed analysis and obtained such undertakings, we advise clients to settle such accounts through us in order to have such listings removed, rather than updated at credit bureaus.
B. JUDGMENT LISTING
A Judgment listing could be recorded on your name at the credit bureau if you owed your creditors money and they had to obtain court orders from courts of Law (Magistrate or High Courts), compelling you to make payments and granting the creditor (Plaintiff) the right to take action against you in order to collect the monies outstanding (Judgment Debt).
Judgment listings, as mentioned herein above, could be recorded against your name at the credit bureau in forms of;
MAGISTRATE COURT LISTING
A Magistrate Court judgment listing occurs as a result of a court order obtained in any Magistrates' courts of law, compelling you to make payment and granting the creditor (plaintiff) the right to take action against you in order to collect the judgment debt. We approach your creditors to ascertain the judgment debt and costs, in order to obtain consent to rescission of the judgment.
Once the judgment debt and costs are settled, we further apply to the respective courts of law and appear in person to have the judgment rescinded, based on the creditors' consents. We prepare the application on your behalf, having obtained the necessary consent, draft supporting affidavits (if required) and appear in court on your behalf - you don't need to be present at the hearing.
Thereafter, should the judges agree to the creditors' consent and our arguments in court and rescind the judgment; we proceed to instruct the credit bureau to remove the judgment listing from your credit profile.
HIGH COURT LISTING
A High Court judgment listing occurs as a result of a court order obtained in any High courts of law, compelling you to make payment and granting the creditor (plaintiff) the right to take action against you in order to collect the judgment debt. We approach your creditors to ascertain the judgment debt and costs, in order to obtain consent to rescission of the judgment. Once the judgment debt and costs are settled, we further apply to the respective courts of law and appear in person to have the judgment rescinded, based on the creditors' consents.
We further appear in the High Court on your behalf in order to have the judgment rescinded, having obtained the necessary consent from your creditors, and preparation of application and support affidavits. Accordingly, High court applications are subjected to the Judges' discretion and therefore could be granted by the judge or not. Should the judge grant the recession of the judgment, we proceed to instruct the credit bureau to remove the judgment listing from your credit profile.
C. ADMINISTRATION ORDER
An administration order is a listing that results from your indebtedness to various creditors of not more than R50, 000, who apply to courts of law to have their debts paid by you to them through an Administrator. You are therefore required to pay the Administrator, who in turn distributes payments per month to your creditors on your behalf.
In essences, an administration order means that, you can not take control of your life in respect of debts, thus you need the help of a third party, the Administrator. It acts as a shield from your creditors in circumstances that your debts are enormous, but does not help your credit profile ratings. Nonetheless, we could assist you by apply to the courts of law for the administration order to be rescinded. Having the application granted would allow you take back control of your finances and not to pay the administrative fees, which could improve your credit profile and thus get access to credit.
D. GARNISHEE ORDER
A Garnishee order is a listing by your creditors who, in liaison with your employer, instruct your employer to deduct money from your salary on a monthly basis in re-payment of monies owed to them.
We are of the view that amount to be deducted monthly should be relative to your income and expenditure. Depending on the merits of your case, we could assist you challenge this matter on application to the courts of law, either by rescission of the garnishee or reduction in monthly deductions by creditors from your salary.
E. SEQUESTRATION OR REHABILITATION ORDER
A Sequestration or Rehabilitation order appears on credit profiles of people who have applied to High Courts of law to be sequestrated or rehabilitated due to financial mismanagement or liquidation problems (insolvency of estate).
Granting sequestration or rehabilitation orders by courts of law is subjected to several factors under the discretion of the judges, which should not otherwise prejudice your creditors.
However, complying with certain strict requirements, people under insolvent estates could be rehabilitated through a stringent process to recovery. We could assist you by preparing an application to the High Court, to have creditors' application overruled and thus overturn the previous sequestration or rehabilitation order.
HAHN & HAHN ATTORNEYS' APPROACH
There are many companies who claim to be able to help you clear your bad credit record but many of them are not really in a position to do so and can often make your situation worse by taking your money and doing nothing to help you. We have a great deal of experience at helping people "repair" their credit record and are expertly placed to do so. If anyone can help you with credit bureau clearance - we can!
How to avoid getting your name listed:
- Pay all your debts before the 7th day of each month
- Notify all your creditors of change of address
- Attend to legal documents and letters immediately - DO NOT IGNORE THESE - THEY WILL NOT GO AWAY!
- Should you be unable to pay your debt, make suitable arrangements with your creditors and keep to your arrangements.
- Be careful of what you sign! Peruse documents first and should you require advice, kindly contact us for assistance.
How long do Adverse Listings & Judgments stay listed against your name?
|Adverse listings||:3 years|
|Sequestration (Rehabilitation) Order||10 years|
|Administration Order||10 years|