Debt Question

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essop1@gp

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Hi All,

What does it mean when you have a listing on a credit report stating "bad debt written off"?

Thanks
 
essop1@gp said:
Hi All,

What does it mean when you have a listing on a credit report stating "bad debt written off"?

Thanks
Click to expand...

Other than the literal meaning?

Basically. When you owe R100. And you don't pay that R100 back like you said it would. The company has a few things they can do (except break your legs etc). They eventually give up (or they're very nice) and they write the debt off. Meaning they take responsibility for the loss to their finances and stop pursuing you for it.

Even though it means that you're now "free" of this debt you owed, it could be a huge red flag for anyone else when you apply for credit.
 
'Written off: the credit provider has noted the account as bad debt due to you not making payment'.

In other words given up on getting money from you - absolutely bad for your credit rating.
 
essop1@gp said:
Hi All,

What does it mean when you have a listing on a credit report stating "bad debt written off"?

Thanks
Click to expand...
It means what it says. You owed a certain amount to someone, and they decided to cut their losses and write it off as it would probably cost them more to pursue you to pay it off. It is however a bad reflection to anyone doing a credit check on you.

If I were you I would contact whoever it is and find out how you can go about clearing it.
 
so that means he has a bad record now as he was listed ?
 
It is also called an impairement.

You have recourse. The company that placed the record on your credit record need to have followed a process. If you never received an official letter requesting that you are late with the payment, you can lodge a dispute.

Phone the NCR if you want to take this further
 
so it means that if the debt is paid up in full, the record on the credit report will change to paid up or settled and then be removed from the credit listing?
 
marco79 said:
Yes it does. He will battle to get any credit until this has been cleared from his credit record.
Click to expand...

Negative, I had a 2500 debit with FNB written off by them. I still haven't paid it and since then I have had the following CC's.

Woolworth
Virgin Money
Blue Bean
Standard Bank Gold Cheque, Credit cards and a personal loan
RCS
Edgars
Markhams
Nedbank personal loan

That was before the NCA though so it might be different now.
 
essop1@gp said:
so it means that if the debt is paid up in full, the record on the credit report will change to paid up or settled and then be removed from the credit listing?
Click to expand...
You'll need to check with them how you can go about clearing it.
 
essop1@gp said:
so it means that if the debt is paid up in full, the record on the credit report will change to paid up or settled and then be removed from the credit listing?
Click to expand...

It's stays in your record for 2 years then is automatically removed provided it's settled.
 
Last comment by Juggy is right but u can always fight it the moment u start fighting it the companies normally has to pay for the complaint most of the times if it is a low amount the will send u a lettter u send it to Credit Burea and they update it a few months later.........
 
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