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Know how much you owe

By admin
26 September 2013

Move! asked Truworths to explain how interest works  

What is interest?

A. Interest is a fee charged for delayed payment to cover the cost of the money spent by the supplier to buy and stock the merchandise on offer.

Q. What must you do when you can't pay?

A. You should immediately phone Truworths to make suitable repayment arrangements. You must not leave it, because this will be harmful to your finances and your credit record.

Q. When do clothing stores blacklist a customer?

A. There is no such thing as a 'blacklist'. The names of all consumers who have applied for credit at some stage are recorded at one or both of the country’s credit bureaus. Every month, credit providers, such as Truworths, send the credit bureaus information on how customers have paid their accounts, and information on each consumer is put together to show their payment profile.

If you fail to pay your account completely and are written off as a bad debt, you are shown as a payment defaulter or a nonpayer. This information is kept at the bureau for three years. If a court judgment is taken against you, it is also reflected on your account and is recorded at the bureaus for five years.