Guiding consumers since 2009

61% of Consumers are in Good Standing with their Creditors

By Staff Writer
61% of Consumers are in Good Standing with their Creditors

The National Credit Regulator's (NCR's) Credit Bureaux Monitor reported 17.14 million credit active consumers for the quarter ending March 2008, of which 10.55 million consumers were in good standing, representing 61.56% of all consumers. The number of consumers who are in good standing decreased from the December 2007 quarter, when 10.67 million consumers were in good standing, being 62.35% of all consumers.

This indicates that the level of debt stress has increased with a 0.8% between the December 2007 and March 2008 quarters in the percentage of consumers with impaired credit records. In comparison to the June 2007 quarter, there was a 2% increase in consumers with impaired records. Consumers are considered to be "in good standing" if none of their accounts are more than two months in arrears. Consumers have impaired records when at least one of their accounts is more than two months in arrears, or if they have judgments or other negative information on their credit records.

The Credit Bureau Monitor contains consolidated credit bureau statistics. The National Credit Regulator (NCR) compiles the Credit Bureau Monitor from data which registered credit bureaus have to submit in terms of the National Credit Act (NCA).

Every consumer has the right to a free credit bureau report once a year. 37 644 free credit reports were issued to consumers during the quarter ending March 2008, resulting in 12 653 disputes being raised.

In the quarter to March 2008, 108.88 million enquiries were made against consumer credit records, compared to 101.54 million enquiries for the December 2007 quarter. Although the aggregate number of enquiries increased, the enquiries as a result of consumers applying for credit decreased from 12.81 million to 11.14 million. The NCR points out that some decline from the peak December quarter is to be expected.

The purposes for which enquiries may be made are regulated in terms of the National Credit Act.

Enquiries may be made as result of a consumer's application for credit, or by credit providers for risk management or marketing purposes, as well as for certain other purposes. 48.47% of enquiries for credit bureau reports during the March 2007 quarter were made by banks, 22.51% by retailers and 29.02% by all other categories combined.

The trends confirm the increase in credit risk, although it indicates that the impact on consumers' repayment capacity was still moderate.

Recent Articles

Featured Ensure your family doesn’t feel the impact of your retrenchment

Retrenchment doesn’t only change the way you view yourself; it also alters the relationship between you and your family. Things can go from good to bad within a short space of time. But you can do something to prevent your family from feeling the impact of retrenchment.

Someone got injured on my property – now what?

Life is unpredictable and no matter how careful we are, accidents happen. But what if someone has an accident while visiting your house? Your guest could fall off the stairs, slip on the floor or get bitten by your dog. 

Are you ready for a house upgrade?

You moved into your home knowing one day you would need to make some changes to turn it into your dream home - add a new bedroom, a second bathroom, build a double storey or even move out.

How income protection can help you when you’re sick

Your greatest asset is probably your ability to earn an income, which provides a certain lifestyle and the capacity to take care of your dependants. That’s why it’s so important to protect your income against unforeseen illness or injury and to provide for your dependents after your death.

Deals

Register for a free online course with Wits

Price: Free
When: Daily
Where: Online

Edgars slogan T-Shirts from R60

Price: From R60
When: While stocks last
Where: Nationwide

3 Months Free on Samsung Galaxy A7 contract

Price: From
When: Daily
Where: Nationwide


Latest Guide

Complete guide on personal income tax