Monday, September 9, 2013

CREDIT AMNESTY

Cabinet, yesterday (05/09/2013) approved the proposal for the credit amnesty. It is still unclear what the exact terms of the amnesty will be other than debts which have been paid up will be removed.

Cabinet spokesperson Phumla Williams said, “The key to the option is to ensure that those that have settled their debt and they are able to afford debt should be allowed to do so.”

For your ease of reference, the 3 options proposed by The Department of Trade and Industry (dti) and National Credit Regulator (NCR) and presented to Parliament were:

Option 1
·         Removal of all adverse listing less than R10 000 (irrespective of non-payment)
·         Removal of all Paid Up adverse listings on an ongoing basis
·         Removal of all Paid Up judgements on an ongoing basis
·         Number of consumers impacted: 1,516,960

Option 2
·         Removal of all adverse listing irrespective of value and irrespective of non-payment
·         Removal of all Paid Up adverse listings on an ongoing basis
·         Removal of all Paid Up judgements on an ongoing basis
·         Number of consumers impacted: 1,605,763

Option 3
·         Removal of all judgements and adverse listing irrespective of value and irrespective of non-payment
·         Removal of all Paid Up adverse listings on an ongoing basis
·         Removal of all Paid Up judgements on an ongoing basis
·         Number of consumers impacted: 2,180,774

It is vital to understand; the amnesty will affect defaults and possibly judgements but not the underlying [rental] payment profile. It is to the benefit of all credit bureau members to ensure you contribute in a positive and meaningful way by ensuring your tenant / debtor data is loaded and up-to-date on the TPN credit bureau.

In conclusion, TPN will keep our members updated on the process, we will assist in suggesting changes to your tenant / client take on process you should consider as and when more details become available regarding the exact terms of the credit amnesty. You are not powerless – you have the power to contribute in a meaningful way by loading your tenant data accurately, monthly and on all tenants good and bad.



Warm regards,


Michelle Dickens    Managing Director Tenant Profile Network (TPN)

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