Credit Score Disputes: How to Fix Bad Debt on Your Record

Your Rights Under the National Credit Act

The National Credit Act (NCA) gives you significant rights when it comes to your credit record. Many South Africans don't realize they have the power to challenge incorrect or unfair information on their credit reports.

What is a Credit Report?

Your credit report is a record of your credit history maintained by credit bureaus. It includes:

Your personal information (name, ID number, addresses).
Credit accounts (loans, credit cards, store accounts, mortgages).
Payment history (on-time payments, late payments, defaults).
Public records (judgments, administration orders, sequestration).
Credit inquiries (when lenders check your credit).

This information determines your credit score—a number that lenders use to assess your creditworthiness.

The Major Credit Bureaus in South Africa

TransUnion - 0861 886 466
Experian - 0861 105 665
Compuscan - 0861 514 131
XDS - 011 645 9000

You have the right to request a free credit report from each bureau once per year.

How to Get Your Free Credit Report

Option 1: Online

Visit the websites of the credit bureaus:

You'll need to register and verify your identity.

Option 2: By Phone

Call the bureau and request your free annual report. They will send it via email or post.

Option 3: Credit Monitoring Services

Services like ClearScore and Kudough provide free ongoing access to your credit score and reports (they make money through advertising and referrals).

Disputing Incorrect Information

If you find errors on your credit report, you have the right to dispute them. Common errors include:

Accounts that don't belong to you (identity theft or administrative error).
Incorrect payment history (showing late payments when you paid on time).
Duplicate accounts.
Debt that has prescribed (more than 3 years old).
Judgments that have been paid but not updated.
Accounts marked as in arrears when they're up to date.

The Dispute Process (Step-by-Step)

Step 1: Gather Evidence

Collect proof that the information is incorrect:

Bank statements showing timely payments.
Payment confirmations or receipts.
Correspondence with the creditor or debt collector.
Court documents (if a judgment was rescinded or satisfied).
Police reports (if fraud or identity theft is involved).

Step 2: Contact the Credit Bureau

You must dispute the information with the credit bureau (not the creditor directly). You can do this:

Online: Most bureaus have online dispute forms.
By email: Send a formal dispute letter with supporting documents.
By phone: Call and log a dispute (get a reference number).

What to include in your dispute:

Your full name and ID number.
The specific account or entry you're disputing.
Why it's incorrect.
Supporting evidence.

Step 3: Credit Bureau Investigation

By law, the credit bureau must investigate your dispute within 20 business days.

They will contact the creditor or information provider to verify the accuracy of the disputed information.

Step 4: Outcome

The credit bureau will inform you of the result:

Dispute upheld: The incorrect information is removed or corrected.
Dispute rejected: The creditor confirmed the information is accurate.

If your dispute is rejected and you still believe the information is wrong, you can:

Escalate to the National Credit Regulator (NCR).
Lodge a complaint with the Credit Ombud.
Seek legal advice.

Debt Prescription: The 3-Year Rule

One of the most powerful rights you have is debt prescription. This means that after a certain period, a creditor loses the legal right to collect the debt.

How Long is the Prescription Period?

For most debts, the prescription period is 3 years from the date of the last activity on the account. This includes:

Personal loans.
Credit card debt.
Store accounts.
Utility bills.

Exceptions:

Mortgage bonds: 30 years.
Judgment debt: 30 years (unless extinguished by a court).
Tax debt: Does not prescribe.

When Does the Clock Start?

The 3-year period starts from the date of the last activity on the account, which includes:

Your last payment.
Acknowledging the debt in writing.
Making a payment arrangement.

What Interrupts Prescription?

The prescription period can be interrupted (reset to zero) if:

You make a payment toward the debt.
You acknowledge the debt in writing (e.g., signing a repayment agreement).
The creditor obtains a court judgment against you.

Warning: If a debt collector contacts you about an old debt and you make even a small payment, you restart the 3-year clock.

How to Raise Prescription as a Defense

If a debt is older than 3 years and there's been no interruption:

Check the date of the last payment or acknowledgment.
If more than 3 years have passed, the debt is prescribed.
Contact the credit bureau and request removal of the prescribed debt.
If the creditor sues you, raise prescription as a defense in court.

You can use our debt prescription calculator or consult a lawyer to confirm if your debt has prescribed.

Prescribed Debt on Your Credit Record

Even if a debt has prescribed, it may still appear on your credit report. However:

Information older than 5 years must be removed from your credit record by law.
If a debt is older than 3 years and no judgment was obtained, you can dispute it.

Request the credit bureau to remove prescribed debts that are older than 5 years.

Debt Review Clearance Certificate (Form 19)

If you were under debt review and have now paid off all your debts, you need a clearance certificate to have the debt review flag removed from your credit record.

What is Debt Review?

Debt review (also called debt counseling) is a legal process under the NCA where a debt counselor helps you restructure your debt and make affordable payments.

While under debt review, your credit record will show you as "under administration," which prevents you from taking on new credit.

Getting Your Clearance Certificate

Once you've paid all your debts in full:

Your debt counselor must issue a Form 19 Clearance Certificate.
The debt counselor sends the certificate to all credit bureaus and creditors.
The credit bureaus must remove the debt review flag within 7-21 days.

What If Your Debt Counselor Doesn't Provide the Certificate?

If your debt counselor fails to issue the clearance certificate after you've paid all debts:

Send a formal written request (via email or registered mail).
If they still don't respond, lodge a complaint with the National Credit Regulator (NCR).
You can apply to court for a clearance order.

How Long Does It Take?

The entire process should take 2-4 weeks after your final payment. If it takes longer, follow up with the debt counselor and credit bureaus.

When to Escalate to the NCR

If a credit bureau or creditor is not cooperating, you can escalate your complaint to the National Credit Regulator.

Contact Details:

Phone: 0860 627 627
Email: complaints@ncr.org.za
Website: www.ncr.org.za

The NCR can investigate complaints about:

Credit bureau errors.
Debt collectors harassing you.
Creditors refusing to update paid accounts.
Debt counselors failing to issue clearance certificates.

Credit Ombud

If the NCR doesn't resolve your issue, you can lodge a complaint with the Credit Ombud.

Contact Details:

Phone: 0861 662 837
Email: ombud@creditombud.org.za
Website: www.creditombud.org.za

The Credit Ombud is an independent dispute resolution body and their services are free.

Frequently Asked Questions

How long does negative information stay on my credit report?

Late payments: 1 year from the date you bring the account up to date.
Defaults: 1 year from the date you pay the outstanding amount.
Judgments: 5 years from the date of judgment (or until paid and rescinded).
Sequestration (bankruptcy): 10 years from rehabilitation.
Administration orders: 5 years after rescission.

Can I pay someone to "fix" my credit score?

Be cautious of credit repair companies that promise to remove accurate negative information. If the information is correct, it cannot be legally removed before the prescribed time period. However, if there are genuine errors, a reputable attorney or credit expert can assist with disputes.

Will disputing items on my credit report hurt my score?

No. Disputing incorrect information does not negatively affect your credit score. In fact, successfully removing errors can improve your score.

What if the creditor sold my debt to a debt collector?

You still have the right to dispute the debt. The debt collector must provide proof that they own the debt and that the amount is correct. If they can't, you can request removal from your credit record.

Can I dispute a debt if I genuinely owe it?

You can only dispute inaccurate information. If the debt is legitimate but you're unable to pay, consider options like debt review, negotiation with the creditor, or seeking legal advice.

How do I check if my debt has prescribed?

Check the date of your last payment or acknowledgment of the debt. If it's been more than 3 years with no activity, the debt has likely prescribed. Confirm with a lawyer before raising prescription as a defense.

What should I do if I'm a victim of identity theft?

Immediately report to SAPS, obtain a case number, and notify all credit bureaus. Place a fraud alert on your credit file and dispute all fraudulent accounts.

Can creditors still contact me about prescribed debt?

They may contact you, but they cannot legally force you to pay or take legal action. You can inform them the debt has prescribed and request they stop contacting you.

Key Takeaways

You're entitled to one free credit report per year from each bureau.
You have the right to dispute any incorrect information on your credit report.
Credit bureaus must investigate disputes within 20 business days.
Most debts prescribe after 3 years of no activity.
Making a payment or acknowledging old debt restarts the prescription period.
Information older than 5 years must be removed from your credit record.
If you've completed debt review, you're entitled to a Form 19 clearance certificate.
The NCR and Credit Ombud can help if credit bureaus or creditors don't cooperate.
Monitor your credit report regularly to catch errors early.
Be cautious of debt collectors trying to collect on prescribed debt.