Reading Time: 2 minutes

Questions from Readers

Good day…in 2009 I went to a debt review company they let me fill in a blue form with no copies for me. The next day I went back to them to tell them I want to cancel the debt review, they let me sign a pink form and again I ask for copies, they said I don’t need copies.

[time passes]

I went to the bank to make a loan … the bank told me I was flagged they can’t help me. [I] went back to the debt review company and they closed down…don’t exist anymore.

My payments [were] never reduced … they never helped me.

My girlfriend made a loan to finish all my accounts.

I’m flagged [at the credit bureaus] since 2009 to 2020… Direct Axis told me I qualify for R250,000 loan I told them I only need R15,000 … in 48 hours I got a loan, how, I don’t know…then went back to my bank just to see if I was really flagged and the bank said I’m [still] flagged…now what?  I came to understand that if I’m flagged I don’t qualify for loans, why is Direct Axis giving me this loan?

I need advice or help to clear my name, please.

 

Answer

Firstly, when a consumer applies for debt review they should be given a receipt for the application. You should have got a copy of some of those documents. That company has since gone out of business. That may be because it seems they did not do everything they should have for all their clients (or maybe just tough economic times).

Secondly, if you apply for debt review you will have a notice about it at the credit bureaus. This may cause most creditors to withhold more credit. Otherwise, if they give you credit which you can’t afford they could be fined R1 million. It is unfortunate that it seems the Debt Counselling firm registered you with the NCR before you managed to get back to them the next day. They were obviously efficient in at least that part of their business.

‘you can now approach any Debt Counsellor and ask for help to get a clearance certificate’

The good news is that since your girlfriend settled all your debts with her loan you can now approach any Debt Counsellor and ask for help to get a clearance certificate. This will then be used to remove the old debt review “flag” at the credit bureaus.

‘if you can afford the credit then you should get access to the credit’

With regard to getting the new loan from Direct Axis: Direct Axis obviously did the math and can see that you can actually easily afford the credit. The National Credit Act says that if you can afford the credit then you should get access to the credit if the company is willing to take the risk. They obviously think you can afford to pay the credit and that you will do so.

 

 

 

*Letter/Question has been slightly edited for clarity & brevity.