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Consumer Law > Problems in Consumer Law > 7. Helping a Person Who Has a Problem with Getting Credit
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7. Helping a Person Who Has a Problem with Getting Credit

Sharon wants to buy a second hand car but needs to borrow money from a credit provider in order to pay for it. She goes to a microlender who says her name has been listed with a credit bureau so they will not give her the loan. Sharon does not know anything about this listing and thinks it is unfair that they will not give her the loan.

What does the Law Say?

The National Credit Act defines the steps that must be taken to deal with this problem. (See: Role of Credit Bureaus)

What Can You Do?

These steps can be used to guide you in the way you deal with Sharon’s problem:

STEPS TO HELP A PERSON WHO HAS A PROBLEM REPAYING DEBT
  1. FOLLOW STEPS 1 AND 2 IN PROBLEM 5

(See: Problem 5: Helping a person assess his/her financial situation: drawing up a budget)

These steps cover:

  • What you can and cannot do for the client
  • Recording information about the client’s debt
  1. ASSESS THE CREDIT PROVIDER’S ACTIONS

Check whether the correct processes were followed by the credit bureau and record the following details:

  • Which credit bureau is your client listed at?
  • Contact name and details:
  • Is the bureau registered?
  • Is the information correct?
  • Are they holding information that they should not have?
    • Please give details:
  • Have they had any difficulty getting information from the bureau?
    • If yes, please give details:
  1. DEAL WITH THE PROBLEM

Sharon has the right to know the reasons for being refused credit and has been told that this is because her name is negatively listed with a credit bureau. (See: Role of Credit Bureaus)

Remember that credit providers may refuse to lend money:

  • If this would mean that the loan would be reckless
  • When the credit provider is unable to check the consumer’s credit record (and does not want to run the risk of reckless lending)
  • When the consumer is negatively listed and is prohibited from borrowing any more money.

Given that the reasons given to Sharon for the microlender refusing to give her credit, you should now follow up with the credit provider and the relevant credit bureau.