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 What are the three phases of money laundering?

Money laundering seems like the kind of thing that’s only a concern in blockbuster films. However, South Africa is, in fact, considered a hotspot for money laundering. So, what does this actually entail, and what are the consequences of this illicit practice?

Asset repossession: What banks want you to know

When you’re facing financial strain, it can be difficult to keep up with your debt. Unfortunately, if you refrain from paying your debt, your creditors have the right to take legal action against you. This includes repossessing your assets. But before you hand them over, here’s what you should know.

How to spend a lumpsum for great returns

Imagine you win the lotto. Anyone in this position would be ecstatic! But once your excitement settles down, you’ll have to consider what’s the best thing to do with this money.

How to identify an investment scam

Many people invest a lot of money for their future and that of their offspring. Unfortunately, some of them never reap the benefits because the investments were scams. Luckily, there are ways you can find out if an investment opportunity is too good to be true.

Deals

Get 50% off your friend’s treatment at Mangwanani Spa

Price: from R250
When: Until 30 August
Where: KZN and JHB

Telkom LTE lockdown Deal

Price: R369 per month
When: Until 31 August 2020
Where: Nationwide

Save up to 20% on your car insurance with MiWay

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions