
07 Oct Common FAQs About Credit Bureau Clearance
Credit bureau clearance can seem a complex and arduous process, but once you know your way around it, it’s easy to take the action needed to progress to financial freedom. If you’re unfamiliar with credit clearance, you probably have many questions about the process; how much it costs, the timeline, how it affects your credit, and how it can improve your financial agency.
Read on to get answers to some of South Africa’s most common questions about credit clearance and its workings.
How long does credit clearance take?
By law, the credit bureaus have no more than 21 days to assess and decide on the outcome of your dispute. The length of the dispute period is dependant on how promptly you respond to our requests for documentation and information, plus the efficiency of the bureaus. Should everything go as planned, your credit score should refresh by the next billing cycle or end of the month.
What documents do I need?
The documents you need to remove bad credit report marks include your ID, proof of address, a credit dispute or clearance letter, and a credit report. This documentation can vary by the sort of information you would like to dispute.
For instance, if you would like to change your name, you’ll need a Home Affairs document approving the name change or marriage certificate alongside the above documentation. In the case of a derogatory mark like debt review, you’ll need a credit clearance certificate or paid-up letters from creditors.
What is a credit clearance letter, and do I need one?
Credit clearance letters are written to describe what you would like to dispute on your credit profile and evidence the change. Usually, they report the inaccuracy and support it with relevant documents.
For example, if you have gotten married and wish to dispute your name, you might write something like; “I have gotten married and would like to change the last name on my credit report from Van der Merwe to Bouwers. I have attached a supporting unabridged marriage certificate and my updated Smart ID”.
What can I dispute?
You can dispute any inaccurate information on your credit report. The most common dispute requests include:
- Name and address changes
- Debt review flag removal
- Judgment and admin order removal
- Late or defaulted payment dispute
- False account openings (usually in the case of fraud)
- Prescription debt
- Unauthorised inquiries
- False debt
- Incorrect account balances
If you have a question about what you can dispute, be sure to ask Cape Town Legal Consultants.
Can I remove/dispute debt review?
Yes, you can. To remove a debt review flag from your credit report, you need to gather all general credit clearance documentation (ID, proof of address, credit report, credit clearance letter) plus your clearance certificate. When you submit these documents, the bureaus will check with the debt help system and creditors to make sure your claim is true. If they find everything is in order, the debt review flag will be removed from your credit profile.
If you would like to exit the process, you’ll need to enlist a legal professional to argue you’re no longer over-indebted to the Magistrate’s court.
How does debt review removal cost?
How much debt review removal costs depends on the intricacy of your case. That is, whether you’re married in community of property, how easily we can prove you’re no longer over-indebted, and how complex your debt is.
Can I remove judgments?
You can remove judgments from your credit profile; however, the period this takes depends on where you stand with your creditors and the court. If you haven’t paid the debt that caused the judgment, you’ll need to do this before we can help you dispute it. After you’ve paid off the debt, we can help you obtain a Satisfaction of Judgment letter from your creditor, which will be submitted to the clerk of court.
Then, we’ll delve into a legal process called rescission of judgment: the court will review your case and, should all debts be settled, release you from the judgment.
We’ll help you write a credit clearance letter outlining your release from the judgment and explaining the supporting documentation to the bureaus. Come the next billing cycle, your credit record should be clean.
Can I remove prescribed debt?
Cape Town Legal Consultants can help you remove prescribed debt from your credit profile, provided there are no verbal or written records of either you or your creditor acknowledging the debt, you have not been served a summons, or you have not made any payments toward the debt.
You’ll need to submit the relevant documentation, alongside the last correspondence with the creditor to prove the debt is prescription.
What if my dispute is rejected?
If your dispute is rejected, Cape Town Legal Consultants will escalate it to the Credit Ombudsman, who will liaise with the credit bureaus to ascertain why your dispute was rejected and what can be done about it. If this doesn’t move your case forward, we can help you pursue litigation.
How will credit clearance affect my credit score?
This depends on the nature of your dispute. Disputing particulars like name or address changes shouldn’t affect your score.
When you remove derogatory marks from your report (debt review, judgments, late payments, etc.), your credit score will likely rise. The absence of unpaid debts will reflect your financial responsibility and high creditworthiness, which will in turn gain you a good score.
As you’ve read, credit clearance isn’t a complex process. It involves gathering documentation that supports your dispute and submitting it to the bureaus. Sometimes, the journey to being credit clearance ready can be trying, particularly in the case of following complex legal procedures to prove you’re not indebted.
Let Cape Town Legal Consultants simplify credit clearance. Our team of consultants and attorneys will help you attain a clean credit report, no matter the complexity of your case. If you have further questions about the process, be sure to contact us. We would love to help you on your journey to better credit!