Credit report information:

Credit reports display both positive and negative information based on the actions you have taken with regards to your credit. The following information may be present on your credit report:

1. Defaults:
A persistent default will show up on your credit report if you have not paid an account for three or four months or if you are regularly late in paying your accounts. A persistent default will be displayed on your account before a judgement is taken and will show up on your credit record for up to two years.

2. Judgements:
A judgement is listed on your credit report for the duration of five years. If you default on payment, a credit provider will obtain a judgement against you. Once this has been done, a court will authorise an order that permits money to be to be deducted from your salary. As an alternative, your positions, such as your house will be repossessed.

3. Administration orders:
Administration orders are a form of insolvency. A court will appoint an administrator to distribute a set monthly amount to all of your creditors, on your behalf, in order to ensure that your debt repayments are made. An administration order will appear on a credit record for up to 10 years unless it has been rescinded.

4. Sequestrations:
Sequestration is a legal process whereby you surrender your estate as you are deemed insolvent by court order. A sequestration is an option for an individual who has exhausted all their other options of resolution and therefore the court will appoint a trustee to sell the consumers assets and then proceed by distributing all the proceeds according to the Insolvency Act. The sequestration process is implemented in order to write off all your debts, however, once you enter into the process you are no longer able to access any further credit. Unless sequestration enables you to rehabilitate your financial situation and pay all your creditors, the fact that you have been sequestrated will stay on your credit record for 10 years. However, if your creditors have been repaid after going through the process of sequestration, all information that led to your sequestration will be removed from your credit report, however, for a period of five years your credit report will state that you have been rehabilitated.

5. Debt Counselling:
If you go under debt counselling, the information related to the debt counselling process will be displayed on your credit record. The debt counselling process fundamentally consists of a debt counsellor negotiating with your credit providers on your behalf, in order to find an agreed budget whereby your interest rates are reduced and the payment terms are extended in order to ensure that all your debts will be paid off over a maximum period of 60 months. When under debt counselling, you are no longer able to access further credit until your debts have been paid off and you have received a clearance certificate. If your home loan has been included in the debt counselling process, the repayment terms are extended to 20 years, this stating that you will not be able to access any further credit until your home loan has been paid off.

6. Enquiries:

When a credit provider requests to review your credit report in order to establish whether or not to grant you credit, it will be listed on your credit report. Enquiries will be displayed on your credit report for period of two years. According to the National credit Act (NCA) credit reports are confidential and can only be viewed if given permission and by those who have a prescribed purpose or are prospective employers associated with an occupation that requires immense trust and honesty, whereby the handling of money is involved. Thus, it is important for enquiries to be listed on your credit report in order for you to know who has viewed it.

How to read your TransUnion Credit Report?

A credit report is something that is extremely difficult to understand, as well as get useful information from if you have never seen one before. However, in writing, it is difficult to explain how to read a credit report and thus, the best thing to do would be to contact TransUnion and request their assistance in helping you read your credit report.

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The credit process differs according to the type of credit you wish you apply for.

The following steps map out the process involved with purchasing an item on credit, applying for a loan, or extending the credit limit on your store card and the actions taken by credit providers and credit bureaus.

Steps of the credit process

1. A consumer will apply for credit from a credit provider.
2. The credit provider will begin to process the consumer’s application, which will consist of sending an enquiry to various credit bureaus.
3. The credit bureau will respond to the enquiry and will issue a report to the credit provider.
4. The credit provider will assess the report and decide whether the application is risk-free and if it should be accepted or declined.
5. In the event that the credit provider decides to grant the consumer credit, the consumer credit provider will be used in order to determine the interest rate the consume qualifies for and the deposit that needs to be put down in order to borrow the credit, if any.
6. The credit provider will notify the consumer of the terms of business. If the credit provider declines the consumer’s application they may imply that the credit bureau advised not to take on the agreement, instead of stating the real reason which may be that the credit provider considered the consumer as a bad risk candidate. However, another credit provider may think differently and grant the consumer the credit they need.
7. The Ombud will ensure that both the credit provides and the consumers play fair.

For more assistance with the credit process or any questions with regards to sorting out your financial situation, specifically solving your debt contact ezDebt. Stop searching for Best Debt Review Company In South Africa Bloemhof and contact us now.

We operate nationwide, from a central office in Parow as common practice, as all banks operate from central offices. Operating from one place helps ezDebt better control business processes and develops them when the need arises.

However, ezDebt have attorneys in every jurisdiction of South Africa. Thus, there is no need for ezDebt to meet with clients in person and all that is needed is the client’s documentation, which we will be used to liaise directly with the banks.

Debt review, Administration and Sequestration are viable debt solutions, offered by ezDebt to South African consumers struggling to make their debt repayments are faced with financial difficulty. All debt solutions are implemented through ezDebt systematic business processes, however, they have several differentiating factors.

Administration:

Administration is a debt solution implemented by ezDebt whereby the client’s current debt instalments are reduced and the credit providers receive a debt repayment once every three months. It is a legal process whereby the debt repayment terms are extended, but the downfall lies with the fact that the process is lengthy and takes much longer than debt counselling.

• Interest rates are only reduced to 15.5%
• The terms of the repayments are extended indefinitely
• Payments are only distributed every 3 months (interest adds up)
• Is only applicable for debts that total less than R50 000
• The fees are 12.5% + VAT + distribution costs per month
• Clients payment often becomes a salary deduction, so your employers will find out

Sequestration:

Sequestration is another debt solution but is not offered by ezDebt. The process entails selling an individual’s current assets in order to pay off or lessen their current debt. In addition to this, the court will appoint someone to manage the client’s money and thus, it is an expensive process.

• Clients are forced to sell all their personal assets eg. home, car, furniture, valuables.
• The process will cost clients at least R20 000 in legal fees
• Sequestration is not an option unless it is in the credit providers’ best interests, thus the client needs to offer at least 15% of what they owe
• Rehabilitation is only possible after a period of five years.

Debt Review:

Debt review is a debt management solution implemented in order to assist South African consumers with solving their debt problems. The process of debt review will ensure that the client’s debt repayment plan is extended and their current interest rates are reduced, as a professional ezDebt financial consultant will negotiate with the client’s credit providers. The following information sums up the debt review process:

• ezDebt will restructure your debt after assessing your financial situation
• ezDebt will negotiate your debt repayments with credit providers
• Debt repayments are consolidated into one affordable monthly repayment, paid to an NCR regulated payment distribution agency
• Debt repayment terms are extended
• Once debt repayments have been made, credit bureaus will be notified and credit records will be adjusted.
• Banking fees are reduced and costs are cut, saving you money.

Debt review, administration and sequestration are all solutions targeted at solving the debt problems South African consumers currently face.

ezDebt expert debt consultants will be able to assist you in taking the right course of action.The documents may be a S129 letter informing the client that legal action has started, or a summons has been submitted. Either way, credit providers cannot start legal action if the client has applied for debt review before they send the S129 letter. Stop searching for Best Debt Review Company In South Africa Bloemhof and contact us now.

If the credit providers ask for proof, you will be able to show them the ezDebt receipt. Clients should also request that the credit providers contact ezDebt. If the credit providers do not desist in this practice, please send a complaint through to www.ncr.org.za.

On many occasions, credit providers sell their books of debt and thus, clients can be harassed by another debt collector. Debt collectors still have to follow the national credit act, therefore allowing clients the right to threaten to report them. Stop searching for Best Debt Review Company In South Africa Bloemhof and contact us now.