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Thread: When should you resort to getting debt counselling?

  1. #21
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by helpwithdebt View Post
    ...that is after all what the Credit act states. Doesn't happen in practice though.
    Why a credit listing (credit blacklist) system gained traction and what the Credit Act is structured to achieve are two very different things.

    Ultimately, no-one wants to blacklist anyone - they just want to be paid the money that's due to them.

    Before the NCA a credit listing was a cost effective method to "encourage" payment of an outstanding bill. Once the bill was paid, the listing was removed and everyone got on with their lives.

    Under the NCA the effect of a negative credit entry is far more long lasting, and certainly doesn't disappear once the unpaid bills are paid up. So listing a person no longer "encourages" payment...

    So where's the benefit to the company making the listing?

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    Its a bit of a circle, if you list them, the chances of them creating debt elsewhere is reduced, making the amount owing by them to increase at a lower rate meaning the existing repayments are indeed catching up. Also that other person who now doesn't give credit is less likely to have walls close on him due to non payment, so the economy isn't so badly affected.

    You are correct, it doesn't really benefit one self to do the listing, but it could help a fellow business somewhere along the line.

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