How to have a judgment removed from your credit report

If a judgment is issued against your name, you will soon notice its impact on your credit score

We have a look at what a judgment is, and we consider the steps you should take to have this officially removed from your credit report.

Tip: Get ahead of your debt before things get messy. Start debt consolidation today.

How do judgments work?

According to Annelene Dippenaar, chief legal and compliance officer at Experian South Africa, a judgment is a decision made by the court. 

This gives a credit provider the right to collect outstanding debt, and it might even include repossessing your home or household goods.

“If you have not responded to a Section 129 letter of demand, the credit provider may decide to take legal action, in which case the sheriff of the court will serve you with a summons,” says Dippenaar.

READ MORE: Everything you need to know about a Section 129 notice

“Once you receive a summons, you need to respond within 10 business days, either by indicating your intention to defend the matter – if you believe the monies are not due and payable by you – or by acknowledging the debt and settling the claim amount,” she explains.

Dippenaar says that if you fail to respond during the given period, the credit provider can still get a judgment against you in your absence – this is called a default judgment.

“This judgment notes that the claim of the credit provider is upheld and taken in your absence. It is therefore important to never ignore a summons,” says Dippenaar.  

She explains that judgments can remain on your credit report:

• For five years, or
• Until the judgment is rescinded by a court or abandoned by the credit provider in terms of Section 86 of the magistrates' court act, or
• Until the principal debt of the judgment is paid as prescribed in Section 71A of the national credit amendment act.

“Judgments can seriously impact your credit score and credit report,” says Dippenaar.

How to have a judgment removed

According to Brendan Michie, director and attorney at Hammond Pole, if a judgment reflects against your name, the first step is to get a copy of the credit bureau report reflecting the judgment.

“This search would normally indicate the court in which the judgment was granted, and the case number. It also sets out the name of the attorney firm that took the judgment on behalf of the creditor,” says Michie.

He explains that the next step would be to determine whether the judgment is valid or not. Assuming it is valid, Michie suggests taking the following steps:

• Contact the creditor who took the judgment and try to resolve the dispute, either by way of a payment arrangement or by settling the claim in full.
• Once the debt is paid, a so-called paid-up letter will be provided by the creditor confirming that the specific account in question has been settled. It will also consent to the rescission of the judgment.
• This paid-up letter can be sent directly to the credit bureaus – often the larger credit providers will do this themselves – who normally remove the judgment then and there.
• In certain instances, some credit bureaus will require the judgment to be rescinded by the court that granted it. This will require a court application to be brought asking the court to formally rescind the judgment. Certain requirements need to be met to bring such an application and there are cost implications as well.

“My advice to anyone who is informed of an adverse judgment against their name is to consult an attorney to give them some legal advice,” says Michie.

He adds that every person’s case is different and the facts of each case should be considered fully before a plan of action is formulated.

Get started with debt consolidation before legal action is taken against you.