More SA consumers buckle under debt

2009-10-07 10:56

The percentage of consumers in good standing has decreased, the

National Credit Regulator (NCR) said today.

This followed its monitoring of registered credit bureaus and the

quality of their data.

As at June 2009, credit bureaus had records for 17.79 million

credit-active consumers, the NCR said.

These records showed that the percentage of consumers in good

standing was 55.9%, a decrease of 1.7% when compared with the quarter ended

March 2009 and a decrease of 4.5% when compared with the quarter ended June


The NCR said the number of consumers with impaired records

increased to 7.85 million at the quarter ended June 2009.

“This implies a deterioration in the credit records for 390 000

consumers in comparison to the last quarter and 1.06 million year-on-year,

reflecting a further increase in the level of debt-stress,” the NCR said.

The trend of consumers with impaired records has been on an

increase since June 2007.

According to the NCR there were 121.46 million enquiries made on

consumer credit records during the June 2009 quarter.

This was an increase of 23.4% quarter-on-quarter.

Of the total enquiries made on consumer records, enquiries from

banks and other financial institutions accounted for 39.4%, enquiries from retailers accounted for 14.2% and

enquiries from telecommunications providers accounted for 23.7%.

The NCR said the number of credit reports issued to consumers

increased in the quarter ended June 2009, with 33?662 free credit reports being

issued, an increase of 9.8% quarter-on-quarter.

A further 5 288 credit reports were issued with charge.

The NCR said in the quarter ended June 2009, 7 072 disputes were

lodged in relation to the information on consumer credit records.

This was a quarter-on-quarter decrease of 15.5% and a year-on-year

decrease of 26.8%, it said.

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