TV licence payment warnings and your credit record — what you should know
South African TV licence holders who have not paid their fees should be aware that warnings from debt collection agencies don’t necessarily mean their credit record is under threat.
A MyBroadband forum member recently posted an SMS he received from debt collection agency Revco, on behalf of the SABC, warning about an outstanding amount of more than R1,900.
The SMS stated, “STOP a Trace Alert being activated on your ID at the Credit Bureau. Pay TV Licence NOW”, followed by the amount owed and the user’s account details.
While the warning might sound ominous, a trace alert has no bearing on your credit record.
According to credit bureau TransUnion, a trace alert is placed on your credit profile by a credit provider who has been unable to make contact with you.
When any updated contact information is loaded on your credit profile, it will notify the provider.
Organisation Undoing Tax Abuse (Outa) accountability division head Stefanie Fick said that Revco’s tone in the message was concerning.
“It sounds very threatening taking into account that a trace alert should have no impact on your credit record.”
She advised the forum member to note that a debt collector was looking for updated information because he couldn’t be traced.
“If he wants to pay or query the validity of an outstanding TV licence amount, he should contact the SABC or the debt collection agency,” she said.
“Maybe he should also complain to the SABC and to the Council for Debt Collectors, as the behaviour is inappropriate in our view,” Fick added.
Stefanie Fick, Organisation Undoing Tax Abuse executive director, accountability division
In response to queries from MyBroadband regarding the SMS, Revco chief operating officer Sheldon Goodall said the SABC approved all their communication on the broadcaster’s behalf.
Goodall also disputed that the SMS purported “any negative connotation” or implied the trace alert would affect the TV Licence holders’ credit rating.
“The use of trace alerts at the credit bureaus are lawful, and are used under exceptional circumstances to obtain updated contact information,” Goodall explained.
“[That will] allow our client, and all entities lawfully entitled to use of this information, access to updated information to enforce legal financial obligations against a defaulting party.”
In addition, Goodall said the SABC had a policy to alert debtors when it activates a trace alert on their profiles.
That illustrates the SABC is “steadfast in their resolve” to enforce their legal rights to be paid TV License fees due, Goodall stated.
Blacklisting due to unpaid licence fees
The SABC’s TV licence revenue has declined significantly, with fewer holders paying their fees every year.
In 2021, only 2.2 million out of 10.3 million TV licence holders paid their dues.
Following Revco’s warnings, some non-payers are concerned their protest could negatively impact their credit record and lead to blacklisting, leaving them unable to take out further credit.
Fick reiterated that the SABC could not blacklist anybody for outstanding TV licences, because it was not a credit provider and TV licences were not part of a credit agreement.
“If someone is blacklisted, they should complain to the National Credit Regulator as soon as possible,” Fick said.
She explained that an adverse listing must be preceded by a notice setting out the intention.
Failure to pay your TV licence could only negatively impact your credit record if the SABC obtains a court order or default judgment against you for the outstanding payments.
Fick previously told MyBroadband that this would require the SABC to institute formal legal proceedings, including issuing you with a court summons.
The Broadcasting Act stipulates that anyone found guilty of failing to comply with TV licence requirements could be fined up to R500 and imprisoned for six months.
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