What you need to know about being blacklisted | (2024)

A personal loan and other credit can give you the help you need to achieve your dreams especially when money is tight. However, once your loan or credit application is approved and you have access to the funds, you then have to ensure that you manage the repayment of your personal loan and other debt responsibly so that you do not fall behind and get blacklisted.

However, what does being blacklisted really mean and what are the consequences thereof? In the past, when you fell behind on your loan repayments even if it was just for a month, you were blacklisted as a slow payer on your credit profile. However, this has changed over the years.

So what does being blacklisted mean in today?
A collections department might follow up with a client if a payment was missed for one month and if a payment is missed for a period of two months, a letter of demand will be issued. On the client’s credit profile it will reflect that a payment was missed. All loan amounts written off on any accounts will reflect on the credit profile as well. If payments are still missed after the letter has been issued, and no acceptable payment arrangements were made, the account will be handed over to attorneys for legal proceedings.

Legal proceedings include the issuing of a summons, followed with an application for a default judgement. In some cases, this will involve a warrant of execution to attach goods and or property. At this point, a person is blacklisted, reflecting judgement granted. The consequences of being blacklisted are that credit providers will reject your loan application. In addition, being blacklisted negatively affects your credit score which might prevent you from getting any future credit.

How can you prevent yourself from being blacklisted?
The first step is to inform your credit provider the moment you realise that you are not able to make a credit or loan payment, they will then discuss alternative payment options available to you. If you are employed at an employer that has a contract with Iemas, then you can apply for an Iemas personal loan (depending on your affordability) which will be deducted from your monthly salary. This will assist you with debt obligations and to maintain a positive credit profile.

An Iemas loan can give you the help you need to reach your dreams
We have a variety of unsecured loans available that you can apply for if you are employed at an employer that has an agreement with Iemas. Once you qualify for an Iemas personal loan, you become a member of the co-operative, which means that you get to share in our profits through our annual member rewards. Iemas rewards are based on the products you used throughout the year and is paid out during November. Find out how you can start sharing in the rewards today! Contact us on 0861043 627 or visit unsecured loan page. If your employer does not have a contractual agreement with Iemas, then find out how your employer can become part of the Iemas family here: https://bit.ly/2JjpCI2.

Read other interesting blog articles below:

  1. How to maintain a good credit score
  2. How to manage your finances responsibly
  3. How to save even more money on fuel
  4. What you need to know about personal loans
  5. Four ways to stop dipping into your savings account>

Adapted from: https://www.ezdebt.co.za/blog/consequences-blacklisted-south-africa/

What you need to know about being blacklisted | (2024)

FAQs

What to do if you are being blacklisted? ›

Employees that feel like they have been blacklisted can file a complaint with the Equal Employment Opportunity Commission (EEOC). Should this happen, you will be in the sometimes difficult and often costly position of fighting a claim.

How does being blacklisted affect you? ›

Blacklisting typically occurs when an individual fails to meet their financial obligations, resulting in negative consequences such as being unable to secure loans, credit cards, or even opening a bank account. To check if you are blacklisted, you can receive an annual complimentary credit report.

How do you know you're blacklisted? ›

Your credit report will provide detailed information about your credit history, including any defaults, late payments, or judgments against you. Review the report carefully to identify any potential blacklisting.

What happened to you if you were blacklisted? ›

In the context of the 1940s and 1950s, a blacklist was a list of persons whose opinions or associations were deemed politically inconvenient or commercially troublesome, thereby subjecting them to either difficulty finding work or termination from employment.

What happens after 5 years of being blacklisted? ›

Once you have been blacklisted you will have a bad credit record for anything from 2 – 10 years, depending on the type of listing that you have against you, but even after this period of time, a judgment can be issued against you if you have not paid the money that you owe.

Can a blacklisted person get a job? ›

Being blacklisted will decrease your chances to get a new job. Especially when you work through traditional recruitment agencies. They check your credit report before they recommend you to possible employers. Some agencies have denied job applications when people are blacklisted.

How long does being blacklisted last? ›

If you are blacklisted, it will be very difficult to get approved for new credit products. You may also be charged higher interest rates and fees if you are able to get approved. Blacklisting can stay on your credit report for up to seven years, making it hard to rebuild your credit.

Can you fix being blacklisted? ›

The Bottom Line. If you find that your IP or domain is blacklisted, contact each DNSBL service and request that they delete your listing.

Can you remove yourself from the blacklist? ›

The most straightforward method is to settle the outstanding debt. TransUnion, one of South Africa's prominent credit bureaus, suggests that paying off the debt usually results in your name being removed from the blacklist within 7 to 20 days.

Why am I blacklisted? ›

IP checking software or IT security staff blacklist IP addresses when they consider factors associated with them, such as their users' behavior online, to be suspicious. For example, reports of internet users being abusive online can lead to certain networks rejecting their internet protocol.

Does blacklisted mean blocked? ›

When a phone number is blacklisted, it's because that number is known for making unwanted or spam calls. Calls from that number will be blocked or sent directly to voicemail, either by the recipient's phone carrier or a third-party app.

Can you recover from being blacklisted? ›

It is understandable that one might have slipped behind on debt repayments over this time and tarnished his or her credit score. Thankfully, blacklisting can be resolved and one's credit score can be restored.

How long does blacklisting last? ›

If you are blacklisted, it will be very difficult to get approved for new credit products. You may also be charged higher interest rates and fees if you are able to get approved. Blacklisting can stay on your credit report for up to seven years, making it hard to rebuild your credit.

Can you reverse being blacklisted? ›

If you checked your credit score, and know you made payments on time, then there could have been a mistake when getting blacklisted. When this happens, you can file a complaint with the NCR, or National Credit Regulator. They'll work with you to reverse the mistake.

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