Judgement

When you fall behind with your accounts or fail to make payments and fail to respond to reminder letters the credit grantor may sue you by issuing summons against you. If you do not defend the summons the credit grantor will apply for a court default judgment. A Judgment is a court order. It is public record information where the court orders an individual to pay a debt. A judgment stays on a Credit Bureau’s records for 5 years, but the company (who holds the debt) can still demand the debt be paid for a further 30 years thereafter if it has not been satisfied.

Abandoned Judgment

Abandoned Judgment indicates that the judgment debt has been paid in full or the credit grantor has decided not to pursue the matter. The Judgment will be removed from the firm/individual's credit report.

Rescinded Judgment

A Rescinded Judgment indicates that the court has issued an order to rescind a judgment that had previously been granted. A judgment can be rescinded if there was an error in granting the judgment or if the debt has been paid in full and the consumer involved has then asked for the debt to be rescinded. The credit bureau will only remove a judgment if it has been rescinded by the court.

Default

Default Data is information on non-performance of an account which is supplied by a subscriber and submitted to a Credit Bureau. Default Data is a valuable tool utilised by subscribers to determine an individual's payment history. It may serve as a guideline to other subscribers when determining whether to grant credit. Default Data where enforcement action has been taken remains on a Credit Bureau's database for a period of two years while Subjective Default Data remains for one year. CCA (Consumer Credit Association) subscribers do not remove default notations but amend to state 'account settled in full'.

Administration Order

This is an order granted by the Magistrates Court at the request of the debtor. To qualify for an administration order the total debts owing by the debtor must not exceed R 50,000.00. The court examines the debtor's financial position and appoints an administrator to whom the debtor makes regular payments. These payments are divided proportionately amongst creditors. An administration order remains on the Credit Bureau’s database for a period of 10 years or until it is rescinded in court.

Judicial Management

Sometimes the financial difficulties of a company are the result of poor management and a better-qualified management may offer an alternative to liquidation. A court ordered moratorium is put into effect and the court appoints a judicial manager to look after the business.

Sequestration

When an individual is insolvent (unable to pay their debts), a creditor may apply to the court for an order sequestrating such an individual. After a certain period of time the sequestrated individual may apply for rehabilitation at the Supreme Court. Sequestrations remain on the Credit Bureau’s database for a period of 10 years or until a rehabilitation order is granted. It is important to note that if an individual has been insolvent for 7 years and then is rehabilitated, this will remain on the individuals report for a further 5 years.

Liquidation

Either a Company or Close Corporation may be liquidated. This normally occurs when the Company / CC's liabilities exceed its assets and it is in the interests of creditors that the Company/CC be wound up. Liquidations remain on the Credit Bureau’s database for an unlimited period.

Notarial Bonds

A Notarial Bond is a bond over movable property, registered against the immovable property of the debtor, by the registrar of deeds and is not considered negative information. The Notarial Bond means that should the debtor become insolvent, the creditor holding the registered bond has preferential claim over the finances raised from the sale of the moveable property. Notarial Bonds remain on the Credit Bureau’s database for a period of 10 years, or until cancelled.

Account History

Account History spans a 24-month period on how the consumer has conducted his account with a particular subscriber on a monthly basis. Account History consists of data reflecting both positive and negative information on an individual's account. This information is acknowledged as the most predictive indicator as to how an individual will conduct future credit accounts.