If you are wondering about Blacklisted Loans and The National Credit Act (NCA), you may be interested to know that the term ‘blacklisted’ is not used in the NCA. Though it is often used in the lay context to identify a person who has a negative credit score or bad credit profile, as listed by the credit bureaus. What some don’t realise, however, is that the credit bureaus list both positive and negative information under your name these days. So, to be listed in and of itself is not a negative thing anymore, but merely a way of documenting your credit activity.
Many credit providers are a part of the Credit Providers Association (CPA), an organisation that ensures the submission of quality data to the credit bureaus. This information includes your credit limit, the amount of your monthly instalments, the term of the credit agreement, and the period of months in which you have been in arrears, if you have any.
The credit bureaus load your information and display a two-year history of your account – although your payment history can be kept on file for a maximum of five years, as prescribed by regulation 17 of the NCA. All credit providers are regulated by the National Credit Regulator (NCR), the consumer body that enforces the NCA.
Credit bureaus share your information with credit providers to help them decide whether or not to grant credit to you, although each credit provider has their own criteria, which is affected by the type of loan, the target market and their appetite for risk, of course.
On the other hand, should an employer wish to access your credit information because they are considering you for employment, and would like to verify your trustworthiness and reliability, they will first need to get your consent to do so, as outlined in the NCA, regarding consumer consent.