For those creditors using credit bureau listing as a means of credit management ( that should be all good credit managers), you have probably been advised by your credit bureau of the new requirements before listing any debtor with adverse information on a credit bureau.

But in case they have not or you missed that particular informational brochure in the sea of information you have been receiving on the National Credit Act, then please note Regulation 19 (4) of the Act. This part of the Regulations provides:

“All sources of information as set out in section 70(2) of the Act and Regulation 18 (7) must give the consumer at least 20 business days notice of its intention to submit the following adverse information concerning that person to the credit bureau:

(a) classification of consumer behaviour, including classifications such as “delinquent”‘ “default”, “slow paying”, “absconded” or “not contactable”.

(b) classification relating to enforcement action taken by the credit provider, including classifications such as handed over for collection or recovery, legal action, or write off. ”

So please note that before you adversely list any debtor that you should, probably best in your final letter of demand, advise them of your intended course of action should they fail to make payment and keep record of such correspondence.

In addition also note that a debt which has prescribed in terms of the Prescription Act 68 of 1969 can not be listed on a credit bureau.