Being blacklisted means you cannot get credit, which can have a big impact on your life. Scorpion Legal Protection explains how you can get your name cleared. The process for getting your name cleared from blacklisting depends on how the blacklisting came to be against your name.

Blacklisting through default listing

This means that you have missed payment to one or more of your creditors and, as a result, the creditor has listed a default against you. This kind of blacklisting will remain against your name for up to 2 years. You must settle this debt in order to have the listing removed from your name. When you settle this debt, get it in writing that the creditor will amend or remove the listing against your name – it does not happen automatically that when you have paid up your debt, the creditor will contact the credit bureaus to let them know. The creditor must then request that the credit bureaus amend your listing to reflect that you have paid up your debt to them.

Blacklisting through a court judgment and/or debt review

A judgment is more complicated than a default listing, since it involves a court order compelling you to pay a debt. If you do not pay off this debt, it will remain on your credit profile for 5 years before it is automatically removed.

Where a debtor has applied to be placed under debt review, the court will make an order that the debtor is over-indebted and a debt review flag will appear on their credit profile at the bureau. Once you have been placed under debt review, you must fulfil all obligations under the agreement or the court order before any further credit agreements may be entered into. However, it also means that creditors will not be able to sue you after receiving notice that you are under debt review. Provided that the creditor was part of the creditors on the debt review application and has consented to the proposed payment restructuring, the creditor will have to lower your repayment instalments accordingly.

If you are not under debt review –

Once you have paid off your debts in full, you will need to get an attorney to apply to have the judgment against you rescinded. The creditor will need to provide their consent before the judgment can be rescinded.

If you are under debt review –

Once you have paid off your debts in full, the debt counsellor will issue you with a Clearance Certificate, which will then also be issued to all your credit providers and the credit bureaus. Once the bureaus receive your Clearance Certificate, they will remove the debt counselling flag off your profile. However, it can take some time between receiving the Clearance Certificate and being able to get credit again. You need to give the credit providers time to notify the credit bureaus, and for the credit bureaus to update your profile. The bureaus are legally obligated to remove the 'under debt review' flag from your credit profile within 21 business days of the notification.

How Scorpion can help its members paralegally

Blacklisting –
Once a member advise us that they want their credit profile updated, we will request all the paid-up letters, proof of residence (not older than 2 months) and a signed Special Power of Attorney. Scorpion will then assist by lodging a dispute against the listing with the four major credit bureaus in SA – Experian, XDS, TransUnion and Compuscan. The bureaus will then advise us once the profile has been updated.

Debt Review –
Once a member advises us that they have paid up all their creditors, we will request all the paid-up letters, proof of residence (not older than 2 months) and a signed Special Power of Attorney. Scorpion will liaise with the debt counsellor, who will issue a Form 19 (Clearance Certificate). They will liaise with the Debt Help System to update their information and then send the Clearance Certificate to all four credit bureaus to update the member’s profile. In the case of debt review cases, members may be liable for after-care fees, which are payable before the Clearance Certificate may be issued.

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If you have a query, ask Scorpion Legal Protection on Facebook and ask your question during our next Live Q&A.

* This is only basic advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.