When a consumer defaults on their credit or any other agreement, one of the supplier’s rights is to load an adverse (default) listing against the consumer’s credit profile.
Before loading the default the supplier must:
· Send the consumer a letter of demand
· The letter of demand must specifically mention the “supplier’s intention to load a default”
· The supplier must wait 20 business days’ before listing the default (and may only list in the account was not settled in full).
Business Days: when calculating the 20 business days – the date the letter was sent does not count, Saturdays, Sundays and SA public holidays do not count.
NCA
Regulation 19
(4) All sources of information as set out in section 70 (2) of the Act and Regulation 18 (7) must give the consumer at least 20 business days’ notice of its intention to submit the following adverse [default] information concerning that person to a credit bureau:
(a) Classification of consumer behaviour, including classifications such as ‘delinquent’, ‘default’, ‘slow paying’, ‘absconded’ or ‘not contactable’;
(b) Classifications related to enforcement action taken by the credit provider. Including classifications such as handed over for collection or recovery, legal action, or write-off.