Credit Amnesty Effective 1 April 2014
What you need to know…
The Department of Trade and Industry (DTI) recently published the Removal of Adverse Consumer Information and Information Relating to Paid up Judgments Regulations 2014 which will come into effect on 1 April 2014. This is referred to in the media as the Credit Amnesty.
This legislation means that the existing adverse information on a consumer, excluding unpaid judgments, will be removed from all Credit Bureau reports from 1 April. It is important to note that the debt is not removed, simply the appearance of that unpaid debt on a Credit Bureau report. New adverse listings and judgments will be added on 1 April, but when they are paid, they will be removed.
The Credit Amnesty Regulations state that any “adverse” and “paid up” information that has been removed may not be used for any reason, including credit scoring and assessments of consumers.
This will affect consumer Credit Bureau searches via for example WinDeed, from 1 April 2014. In summary:
Consumer Profile Search adverse data to be removed:
- All adverse listings (defaults listed by a Credit Bureau)
- Disputes regarding adverse listings
- All paid up judgments (effective immediately and on an ongoing basis)
Consumer Profile Search data NOT to be removed:
- Unpaid judgments Administration orders
- Emolument orders
- Sequestrations and rehabilitation listings
- Debt Counselling notification