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inciteadvisor, Commercial Lawyer
Category: South Africa Law
Satisfied Customers: 1610
Experience:  B.Com LLB Registered Corporate lawywer
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I was retrenched in Jan 2012, having a loan at Nedbank. The

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I was retrenched in Jan 2012, having a loan at Nedbank. The loan had an Insurance for cases of retrenchment which was duly approved and I was notified that the insurance will pay the bank six instalments whilst I was unemployed. I was informed that I should make further payments after the six months had elapsed, this approval from the insurance was in February 2012. My understanding was that Nedbank will notify me in August 2012 (after the six months) to start payments and or to confirm if I was still not employed so that I could make further arrangements.

To my surprise I found that in August 2012 through an employment agency that Nedbank has blacklisted me in June 2012 due to non payment. When I contacted them I was told by the Legal department that the Collection department should have notified me of this before handing me to the Legal department.

I contacted the Collection department at Nedbank and was sent from pilar to post, whereby I was told that the insurance made a once-off for six months instalments in March 2012 to them and Nedbank did not spread the amount into six equal payment as the insurance told me. The Collection department told me they did not notify me due to the fact that I was previously under debtreview. I could not understand how this could affect the insurance payout of six months and the notification from Nedbank that the amount is once off and not spread it.

My debtreview status had nothing to do with the notification nor the insurance or the retrenhment as the debtreview status was removed in Nov 2011 and Nedback was notified of this long before my retrenchment.( I still have the debtreview notifications which was sent to all my debtors at the time including Nedbank).

Could you please clarify if this procedure that they followed to blacklist me without notification was correct or fair as this is now causing problems for me to find a job as it reflects on my ITC records. There is also no person who is taking responsibility to solve my matter at the Collection department as I am prepared to make arrangements for further payments. My name should be removed from ITC as the Legal department indicated that they have not appointed an Laywers company for any payment arragements yet. My name isXXXXX: Id 6705040177089-emailXXX@XXXXXX.XXX- Cell XXXXXXXXXX
Welcome, thank you for the opportunity to address your question.

I need a bit more information in order to provide you with a comprehensive answer:
1. Are you currently up to date with the repayments on the account?
2. When did your period of debt review end?
3. Was the current repayment amount stipulated or established whilst under debt review?

Best regards,
Customer: replied 4 years ago.

1. I am not up to date with the repayments on the account, as Nedband did not notify me in August to start paying as per the insurance.

2. It ended Nov 2011.

3. The repayment amount when I was under debtreview was stipulated as a lesser amount.

The prior debt counseling should not be a factor unless a clearance certificate was not obtained from the debt councilor and lodged with the credit bureau.

It is very likely that the bank did not take into account the lump sum settlement and have regarded the unpaid monthly payments as outstanding and therefore there is a possibility that the bank was negligent in issuing negative credit information to the credit bureau.

You have to right to be informed of any adverse credit information being sent to the bureau by the credit provider and in terms of section 72 of the National Credit Act (NCA) the right to challenge the negative credit information. From the information provided the bank is likely not in compliance with the NCA in not having notified you and also in mis-reporting and would be required to compensate you for the cost and effort to have the negative information removed.

Once you challenge the negative credit information with the National Credit regulator, the credit provider has to provide evidence upon which the report was made or remove the information.

Request that the bank's legal or collections department respond to you in writing in order to create a record of what on first glance is a poor excuse.

You can initiate a challenge at the bureau that provided the report or through the National Credit Regulator.

I trust that the legal information provided is helpful in assessing your position. Once you have reviewed the answer provided, please let me know if clarification is required on any aspect. I am always happy to entertain any further questions to ensure you receive the answer you require. If you are satisfied, kindly rate my answer so that I may be given credit for the assistance provided to you.
Best regards,

Customer: replied 4 years ago.

Dear Expert


Thank you for the response, I also understand and concur with the content of your response. I indeed have a Clearance Certificate for the debt review.


Could you kindly indicate what is the next step that I should take to clear my name with ITC and have the Bank to take responsibility.




Dear Dorothey,

As the information has already been lodged at the bureaus and National Credit Register, the NCA states that you can challenge the information at either the National Credit Regulator or credit bureau, ie ITC or where you received the credit report. I would suggest challenging at the credit bureau as the NCR is under pressure. Once the bureau receives a challenge and no credible substantiation from the bank, then the bureau (ITC) has to remove the data or be guilty of a criminal offence.

If the bank provides evidence to the bureau to support the report (which they likely will do ), then you will be provided with a copy of such evidence and will have 20 working days to object to the evidence and apply to the NCR to have the whole matter investigated. If you use the bank statement of the account to motivate your initial challenge to the bureau, there is a possibility of short-cutting the whole process as it would be difficult for the bank to present the same information in their own defence.

Not an optimal situation I am in no doubt, particularly when applying for work and where time is of the essence. Claim costs and also a letter of apology from the bank to submit to prospective employers even if you did not get the job as a negative credit rating could have influenced your prospects and perceptions of your character.

I trust that the clarification provided is helpful, I am always happy to entertain any further questions to ensure you receive the answer you require. If you are satisfied, kindly rate or accept my answer so that I may be given credit for the assistance provided to you.

All the best,

inciteadvisor and other South Africa Law Specialists are ready to help you
Customer: replied 4 years ago.

Dear Expert


Thank you.


I will be approaching the ITC and will lodge the complaint. Is it possible to contact you in case I do not get satisfactory results regarding the matter with ITC or for any future outcome relating to the case.




You are most welcome to contact me on this thread.

All the best.

Thank you for the positive rating provided.
Should you have any further legal questions on this or any other matter, please feel free to forward your question to me directly and I will look into your matter promptly.
All the very best,
Customer: replied 4 years ago.



Dear Expert


I have lodged the dispute with Trans Uninion and is awaiting the outcome in 21 days, will keep you posted.


Thank you and regards.


Dear Dorothey,

It would be interesting to see if the bank returns the same statement in their defence.

Sadly banks do not easily admit to their errors and it takes action as you are conducting in order for them to do right by their customers.

All the best,