Naedo Tracking

[sai13n]

Hi

Does anyone know how Naedo tracking affects your credit score?

1. If your account is not in arrears does Naedo tracking being applied to your account adversely affect your credit rating just for the fact that your account is being tracked?

2. If it does affect your credit score, does the amount of days that the account is being tracked for make a difference? ie. your account is being tracked for 32 days but if funds come into your account after day 5 and thus the money is debited, is that better than if your account is debited on day 20 for instance?

I've read forums that said that some some financial institutions institute tracking on your account from 3 days before your debit date thus debiting as soon as the funds become available into your account even if it is before the debit order date. Thus, surely if this is the case then Naedo shouldn't affect your credit rating aslong as the account is not in arrears, but when I look at my credit report, there is a section for 'Tracking' thus I'm not sure.

 

[The_Ogre]

I doubt it affects your credit score/rating.

NAEDO is so close to theft in my opinion that I can't understand why its still allowed. When you enter into an agreement with a third party they should only be allowed to debit me on the agreed date.

I have a loan with the green bank and I often send money to my mother and when she repays me on the 20th the bastards take their cut. This is despite the fact that our agreement is for the last day of the month.

 

[ant_man]

No it doesn't affect your rating at all.

Most 3rd party institutions will use NAEDO for a few months and once they know that they can collect on a certain date they will drop it.

It costs way more than a normal debit order.

 

[Drifter]

That ^^^^

 

[hellfire]

Hi

Does anyone know how Naedo tracking affects your credit score?

1. If your account is not in arrears does Naedo tracking being applied to your account adversely affect your credit rating just for the fact that your account is being tracked?

2. If it does affect your credit score, does the amount of days that the account is being tracked for make a difference? ie. your account is being tracked for 32 days but if funds come into your account after day 5 and thus the money is debited, is that better than if your account is debited on day 20 for instance?

I've read forums that said that some some financial institutions institute tracking on your account from 3 days before your debit date thus debiting as soon as the funds become available into your account even if it is before the debit order date. Thus, surely if this is the case then Naedo shouldn't affect your credit rating aslong as the account is not in arrears, but when I look at my credit report, there is a section for 'Tracking' thus I'm not sure.

This is generally the case, I believe.

 

[hellfire]

I doubt it affects your credit score/rating.

NAEDO is so close to theft in my opinion that I can't understand why its still allowed. When you enter into an agreement with a third party they should only be allowed to debit me on the agreed date.

I have a loan with the green bank and I often send money to my mother and when she repays me on the 20th the bastards take their cut. This is despite the fact that our agreement is for the last day of the month.

You can dispute the debit order.

 

[HibiscusTunes]

Registering credit with the NCR works like this(very simplified):

1 January you take credit of R12000 and agree to pay it monthly in instalments of R1000 on the 25th of the month via NAEDO. The total amount, capital amount, instalment amount, expendted paydate(25th of the month), number of instalments and the frequency of instalment payments of the credit extended is registered.

25 January the debit order goes off successfully.
31 January the credit provider sends their payment profiles to the NCR which will update the NCR with the details of your account: current balance(R11000), overdue amount(R0), last date of payment(25 January), and the credit status(Open/paid up/in arrears/written off depending on the situation). This usually happens at the end of the month. No NAEDO information is recorded, they do not know or care about tracking.

25 February you miss a payment due to no funds available.
28 February tracking recovers the amount due.
28 February the credit provider sends their payment profiles to the NCR which will update the NCR with the details of your account: current balance(R10000), overdue amount(R0), last date of payment(28 February). You are technically not late. The credit provider may charge you late fees, and add it to the balance of the credit with the update.

25 March you miss a payment due to no funds available.
31 March the credit provider send their payment profiles to the NCR which will update the NCR with the details of your account, current balance(R10000+fees), overdue amount (R1000), last date of payment(28 February). You are now late and will reflect on you credit history, and affect your credit score.

1 April tracking recovers the amount due, but the payment will not reflect on your credit profile yet as the updates only happen at the end of the month.

...

Hope this helps. Using NCR/NLR very loosely in the example.

 

[The_Ogre]

You can dispute the debit order.

I do, sometimes I just leave it, but there are time when I'm out of pocket and am forced to call my bank.

 

[supersunbird]

Registering credit with the NCR works like this(very simplified):

1 January you take credit of R12000 and agree to pay it monthly in instalments of R1000 on the 25th of the month via NAEDO. The total amount, capital amount, instalment amount, expendted paydate(25th of the month), number of instalments and the frequency of instalment payments of the credit extended is registered.

25 January the debit order goes off successfully.
31 January the credit provider sends their payment profiles to the NCR which will update the NCR with the details of your account: current balance(R11000), overdue amount(R0), last date of payment(25 January), and the credit status(Open/paid up/in arrears/written off depending on the situation). This usually happens at the end of the month. No NAEDO information is recorded, they do not know or care about tracking.

25 February you miss a payment due to no funds available.
28 February tracking recovers the amount due.
28 February the credit provider sends their payment profiles to the NCR which will update the NCR with the details of your account: current balance(R10000), overdue amount(R0), last date of payment(28 February). You are technically not late. The credit provider may charge you late fees, and add it to the balance of the credit with the update.

25 March you miss a payment due to no funds available.
31 March the credit provider send their payment profiles to the NCR which will update the NCR with the details of your account, current balance(R10000+fees), overdue amount (R1000), last date of payment(28 February). You are now late and will reflect on you credit history, and affect your credit score.

1 April tracking recovers the amount due, but the payment will not reflect on your credit profile yet as the updates only happen at the end of the month.

...

Hope this helps. Using NCR/NLR very loosely in the example.

I do hope so, because NCR is National Credit Regulator and I think you mean to say Credit Bureau in all the instances you said NCR

Anyway, no, NEADO tracking wont reflect on your credit score, NEADO is between the bank and the loan provider, has nothing to do with the Credit Bureaus.

 

[sai13n]

Registering credit with the NCR works like this(very simplified):

1 January you take credit of R12000 and agree to pay it monthly in instalments of R1000 on the 25th of the month via NAEDO. The total amount, capital amount, instalment amount, expendted paydate(25th of the month), number of instalments and the frequency of instalment payments of the credit extended is registered.

25 January the debit order goes off successfully.
31 January the credit provider sends their payment profiles to the NCR which will update the NCR with the details of your account: current balance(R11000), overdue amount(R0), last date of payment(25 January), and the credit status(Open/paid up/in arrears/written off depending on the situation). This usually happens at the end of the month. No NAEDO information is recorded, they do not know or care about tracking.

25 February you miss a payment due to no funds available.
28 February tracking recovers the amount due.
28 February the credit provider sends their payment profiles to the NCR which will update the NCR with the details of your account: current balance(R10000), overdue amount(R0), last date of payment(28 February). You are technically not late. The credit provider may charge you late fees, and add it to the balance of the credit with the update.

25 March you miss a payment due to no funds available.
31 March the credit provider send their payment profiles to the NCR which will update the NCR with the details of your account, current balance(R10000+fees), overdue amount (R1000), last date of payment(28 February). You are now late and will reflect on you credit history, and affect your credit score.

1 April tracking recovers the amount due, but the payment will not reflect on your credit profile yet as the updates only happen at the end of the month.

...

Hope this helps. Using NCR/NLR very loosely in the example.

Thanks for taking the time to explain

The reason I asked was because on one's detailed credit report there is a section for tracking, I've never had anything in there before, but I do wonder what effect, if any, it will have on the overall credit rating especially if the account is not in arrears.
This is presuming offcourse, that the 'tracking' that the credit report refers to is Naedo and not something else.

 

[sai13n]

I doubt it affects your credit score/rating.

NAEDO is so close to theft in my opinion that I can't understand why its still allowed. When you enter into an agreement with a third party they should only be allowed to debit me on the agreed date.

I have a loan with the green bank and I often send money to my mother and when she repays me on the 20th the bastards take their cut. This is despite the fact that our agreement is for the last day of the month.

Ironically, it is the same green bank causing me hassle! Surely they should only be allowed to debit on the date you've accepted and no sooner!

 

[ant_man]

Ironically, it is the same green bank causing me hassle! Surely they should only be allowed to debit on the date you've accepted and no sooner!

They are only allowed to collect using NAEDO if they have informed you, otherwise they have no right to.

 

[Shard]

NAEDO is so close to theft in my opinion that I can't understand why its still allowed. When you enter into an agreement with a third party they should only be allowed to debit me on the agreed date.

Its not really theft, its a necessary evil in this country with the mentality of people borrowing money.

The theft is how much banks charge people to use it lol.

 

[Former member 61586]

No it doesn't affect your rating at all.

Most 3rd party institutions will use NAEDO for a few months and once they know that they can collect on a certain date they will drop it.

It costs way more than a normal debit order.

Sorry, but that is rubbish. I have had my home loan for over 4 years now. I am more than R100k ahead in payments as I put extra in every month. Yet I still regularly get an early NAEDO debit order.

 

[Former member 61586]

They are only allowed to collect using NAEDO if they have informed you, otherwise they have no right to.

Informed you how?

 

[The_Ogre]

They are only allowed to collect using NAEDO if they have informed you, otherwise they have no right to.

Someone needs to investigate this. I have never been informed of anything.

Perhaps Carte Blanche could do an expose.

 

[Drifter]

Thanks for taking the time to explain

The reason I asked was because on one's detailed credit report there is a section for tracking, I've never had anything in there before, but I do wonder what effect, if any, it will have on the overall credit rating especially if the account is not in arrears.
This is presuming offcourse, that the 'tracking' that the credit report refers to is Naedo and not something else.

No, the tracking you see on your credit report is for people who have absconded and stopped paying their debts. The companies then raise a "tracker" to look for these people and to get them to pay back their debts.

 

[ant_man]

Sorry, but that is rubbish. I have had my home loan for over 4 years now. I am more than R100k ahead in payments as I put extra in every month. Yet I still regularly get an early NAEDO debit order.

As I said in my post, Most and not all.
Its entirely up to the 3rd party to keep you on NAEDO, IMO its a waste as you are a regular payer.

 

[R13...]

As I said in my post, Most and not all.
Its entirely up to the 3rd party to keep you on NAEDO, IMO its a waste as you are a regular payer.

I suspect that must be how they collect all of their debits. As someone said above, SAn are highly indebted and the risk of missing a payment is much higher the cost they incur for NAEDO.

 

[ant_man]

Informed you how?

Found the wording, this is what we used for a Telemarketing Funeral Campaign.

So your total premium is RXXXX and will be deducted from XXXXXX bank account on the xxx day of each month. Your first debit will be on xxxxxxxx. Please note that should your debit fall on a weekend or public holiday, your account will be debited on the first working day thereafter. XXXXX reserves the right to collect your premium and debit your account on or after the preferred debit date each month. (NAEDOS scripting)