Judgement on your Credit record?

How long does a Judgement remain on one’s credit report? Many people have the mistaken idea that a creditor controls the information that the credit bureaus display, and can instruct the credit bureaus about whether to retain or delete information. In fact, creditors are legally required to provide credit bureaus with facts about how someone has managed their accounts (including loans, overdrafts, credit cards, etc.). These facts will include whether the account was always paid on time and, if not, how far in arrears the debtor allowed it to fall.
If a creditor has obtained a Judgement against a debtor/consumer for a debt on which there was default, the creditor must provide the credit bureau with this information. This remains on the consumer’s credit report for five years from the date that the order is granted, whether or not the debt is settled during that time. If the debtor does NOT settle the outstanding debt during that time, the Judgement remains in effect (from a legal point of view) for ten years from date of granting. This means that, even if the credit bureau removes the listing after five years, the creditor can then advise them that the debt is still outstanding and the judgement is still valid, and therefore that the credit bureau should re-list the judgement for the remainder of the ten-year period.
If the debtor settles the debt within the first five-year period, the credit bureau will automatically remove the listing after the five years. However, a debtor has no legal right to request the removal of a Judgement listing earlier, even if they’ve settled the debt. Settlement of the debt doesn’t change the fact that a Court granted a Judgement, and credit bureaus are required to provide this information.
There are also companies that advertise that they can clear credit records. Be wary of these claims. Our attorneys (Liddle & Associates), as well as the Frequently Asked Questions section of the Credit Ombud’s website (www.creditombud.org.za) have confirmed that there is no easy way to do this. Many people have also reported that, even after paying for this service, their credit records have not been cleared.
There is truth in many old sayings, in this case that “Prevention is better than cure”. There are ways of dealing with debts before they proceed to the stage of legal action and Judgement, so it’s much better to confront the problem earlier, when resolving it will be easier and the long-term impact will be much less severe.