An Adverse listing is a negative listing on a consumer’s credit report that indicates that the consumer did not make regular payments towards their outstanding debt or payments at all. The Credit Provider will then list the consumer’s account as an Adverse account listing.

The consumer applies for an Administration order through an Administrator. The Administration order will be granted where the consumer cannot afford to honour their debt obligations and where their debt is under R50 000 and they do not own any assets. In terms of the Administration Order, the court will determine how much the consumer needs for basic necessities and how much is left from their income to honour their debt repayment obligations. The repayment amount towards the outstanding debt is then paid by the consumer to the Administrator on a monthly basis. The Administrator will then distribute the payments on behalf of the consumer to the Credit Providers owed every 3 months. Administration orders can stay on a consumer’s credit record for 10 years.

The bureau score is a number that represents the associated risk of the consumer’s repayment probability. The score is calculated by using statistical analysis of the negative and positive data on the consumer’s report to determine what risk the consumer holds for the Credit Provider. Scores and the associated risk indicators may differ from Bureau to Bureau as the weights and measures to calculate the score might differ at each Bureau.

The act of getting money from consumers who are not repaying their loans/debt. This process can be performed by an attorney, external collection company or internal debt collection departments at the Credit Provider. The listing is seen as negative on the consumer’s credit report. In extreme cases the consumer first needs to be traced; by obtaining new contact information, before the collection process can be implemented. Collection processes can include a promise to pay from the consumer, debt restructuring processes where the repayment amount and terms are negotiated and settlement amounts requested.

Also known as an Affordability Assessment. This assessment process includes a full study of the consumer’s credit profile information; as indicated on their credit report, to determine which services are relevant to assist the consumer to improve their credit standing or to determine if the consumer qualifies for a specific loan product.

A study of the consumers’ debt obligations (what they must pay) in terms of their income. This type of analysis that LTA Debt Solutions performs will determine what payments the consumer can afford to pay towards their debt obligations after their basic needs (Rent/bond, food, etc.) are provided for.

An institution that collects data from various sources (i.e. credit providers, collection agents and public sources) that is related to the consumer’s credit history and contact information. The Credit Bureau then validates, verify, load and host the positive and negative data and display it in a useable format by means of a Credit Report for each individual consumer.

Institution that provides goods or services on credit. These include institutions like Banks, Micro-lenders, Furniture stores, Clothing retail shops and Telecommunication companies.

A process whereby the consumer’s debt is fully paid-up at each of their Credit Providers by extending a loan to the consumer that fully covers the balance of the debt at each of their Credit Providers. The consumer will thus only have one loan to repay.

Institutions that assist a consumer on their request to determine if the consumer is over-indebted, review the debt and restructure the repayment of the outstanding debt and terms with the credit provider.

The process where a Debt Counsellor negotiate with the Credit Provider for an amended repayment amount on the consumer’s outstanding debt amount and terms. LTA Debt Solutions will assist consumers to further restructure their repayment amount when the consumer opts to leave/cancel the debt review process or where the consumer is in arrears with their debt repayments. LTA Debt Solutions will only be able to restructure loan repayment amounts and terms where the consumer is not yet in arrears, but require the lesser instalment negotiation.

The process where LTA Debt Solutions negotiates with the Credit Provider for an amended repayment amount or terms on the consumer’s outstanding credit at the specific Credit Provider. LTA Debt Solutions will only be able to negotiate to restructure loan terms where the consumer is not yet in arrears but requires the lesser instalment negotiation over an extended period.

Where the consumer fails to make payments towards their outstanding debt obligations. In most cases the default listing will stay on the consumer’s credit profile for 3 payments skipped and then become an Adverse listing after that.

Listing by the Credit Provider, who in liaison with the court, instruct the consumer’s employer to deduct the debt repayment amount from the consumer’s salary before the consumer receives their salary pay-out.

The Credit Provider applies at the court (Magistrate – or High court) for a Judgment against the consumer that failed to make payment towards their debt repayment. The Credit Provider only needs the consumer’s ID, surname and loan agreement to obtain the Judgment listing against the consumer. The consumer does not even need to be present in court for the Judgment to be granted. A Judgment is thus a court order that compels the consumer to make regular payments as set out in the Judgment order. Judgment information are removed from a consumer’s credit report as soon as the Credit Provider provides a paid-up letter to LTA Debt Solutions. LTA Debt Solutions will then submit the paid-up letter to the Credit Bureaus. It will take 14 working days to remove the Judgment listing from all Bureaus after the paid-up letter was submitted.

Legal advice or formal opinion from a professional regarding the requirements set out in a law / act.

Detailed information on a consumer’s profile that shows legal -and enforcement action that was taken against a consumer for poor behaviour on their outstanding debt obligations. Negative data include indications such as:

• Slow paying
• Defaults
• Adverse listings
• Judgment
• Administration order

A mandate that the consumer signs as an agreement that LTA Debt Solutions can act on behalf of them with regard to their debt negotiations and restructuring.

The Section in the National Credit Act 34 of 2005 that explains the process that the Credit Provider must follow before legal action (i.e. Judgment) can be taken against the consumer. This section indicates that the Credit Provider needs to ensure that the consumer understands the wrongdoing in terms of the failure to repay their debt, the consumer’s rights (i.e. see a Debt counsellor / Administrator) and the repercussions if the consumer fails to take one of these options (i.e. Judgment / Emolument Attachment Order / Garnishing, etc.)

The settlement refers to the either the full payment of the outstanding balance or where the consumer pays the arrears amount to bring the payments on the account up-to-date or to close the account.

The consumer who pays the monthly subscription fee and who agreed to the subscription either telephonically or by signing the Legal Optomic Advice documentation, in order to receive the benefits that is offered under the service.