Debt relief is strictly for payers

THE department of trade and industry is calling on people to make sure that they check their information with the credit bureau to see if their names have been removed from the list of bad payers.

Speaking on behalf of the department, deputy director on consumer law and policy, Matsobane Mokaba said this was part of the department’s latest campaign, in which the government was working to help people who were regarded as bad payers to regain their credit worthiness.

Mokaba explained that this would be done through the removal of the adverse classification of consumer credit information that showed the consumer’s behaviour such as delinquent, default, slow paying or absconded at the credit bureau.

The government wanted to make sure that people were given a second chance in life, he said.

“Not everyone will benefit from this process; only those people who have already paid their debts in full will have their names removed,” he explained.

He said this campaign was also to make sure that the economy of the country was given a chance to breath.

“If people are unable to spend it creates a burden on the economic growth of the country,” he said.

He said consumers still had the responsibility of paying their their debts, and the campaign was not aimed at removing people’s debts but only negative information about their credit records. The campaign started on April 1.

Mokaba also mentioned that the department, through the National Credit Regulator. would embark on a campaign to teach people how to manage the credit and not to spend recklessly.

“It does not help assisting people to regain their credit control if they get back into trouble again because of reckless lenders,” Mokaba said.

“The department has introduced the affordability assessment guide, which will be facilitated by the National Credit Regulator to compel creditors not to give credit to people who are already heavily in debt.

Anyone wishing to find out more about their credit standing can call the National Credit Regulator on 0860 627 627 or the Consumer Profile Bureau at (010) 590 9505.