Listing on credit bureaus

[jazz]

Hi

As a telecoms organisation that is a member of the CPA are we obliged to notify clients that they will be listed on the credit bureaus in the event that they default on payments on their accounts.



regards
jazz

[SilverNodashi]

I sure would think so. But I do think you need to follow the guidelines / rules with regards to "handing someone over". AFAIK you need to advice the client about the outstanding fees first, and only then after no payment has been received after a specified time can you give them over

[jazz]

great thanks. Could we perhaps include this in our Final demand letter. We normally allow our subscribers to pay /respond within 7 days before we proceed with writing teh accounts off

[SilverNodashi]

I'm almost certain it's one of those things that you have to add in anycase. But, even if not, it'll just protect you to add it to your term & conditions

[duncan drennan]

You might just want to go carefully through this part of the NCA,

Required procedures before debt enforcement

129. (1) If the consumer is in default under a credit agreement, the credit provider-

(a) may draw the default to the notice of the consumer in writing and propose that the consumer refer the credit agreement to a debt counsellor, alternative dispute resolution agent, consumer court or ombud with jurisdiction, with the intent that the parties resolve any dispute under the agreement or develop and agree on a plan to bring the payments under the agreement up to date; and

(b) subject to section 130(2), may not commence any legal proceedings to enforce the agreement before-

(i) first providing notice to the consumer, as contemplated in paragraph (a), or in section 86(10), as the case may be; and

(ii) meeting any further requirements set out in section 130.

Read more about debt enforcement under the NCA

So you must draw attention to it in writing. Now, you also have to refer to 86(10) here, which reads,

86(10) If a consumer is in default under a credit agreement that is being reviewed in terms of this section [that is sec 86], the credit provider in respect of that credit agreement may give notice to terminate the review in the prescribed manner to-

(a) the consumer;

(b) the debt counsellor; and

(c) the National Credit Regulator,

at any time at least 60 business days after the date on which the consumer applied for the debt review.

Section 86 in NCA

So if the customer is currently under debt review, then you can notify the consumer, debt counsellor and NCR in the prescribed manner (would have to look up what manner that is though).

Further this is probably also relevant,

130. (1) Subject to subsection (2), a credit provider may approach the court for an order to enforce a credit agreement only if, at that time, the consumer is in default and has been in default under that credit agreement for at least 20 business days and-

(a) at least 10 business days have elapsed since the credit provider delivered a notice to the consumer as contemplated in section 86(9), or section 129(1), as the case may be;

(b) in the case of a notice contemplated in section 129(1), the consumer has-

(i) not responded to that notice; or

(ii) responded to the notice by rejecting the credit provider's proposals; and

(c) in the case of an instalment agreement, secured loan, or lease, the consumer has not surrendered the relevant property to the credit provider as contemplated in section 127.

Section 130 of the NCA

So consumer must be in default for at least 20 days, and at least 10 business days must have elapsed from the time of the notice. i.e. if you sent notice on day 15, you can only start proceedings on day 25. If the notice was on or before day 10, then you can start proceedings on day 20. It would also require non-compliance, or non-response from the consumer.

Hope that helps a bit. I would really recommend reading through the relevant parts of the NCA!

[Kim]

Hi

I have several clients who I have called repeatedly for payments yet no payments have been made. I have even agreed with them paying their accounts monthly and they still miss payments. I have sent them a final demand letter and I have given them 14 working days to make payment. How do I go about registering them with the credit breau if it has not been paid?