SA Legal Advice Attention Patrick Re: Re...

Asked by the Customer on 24-05-2015 12:39:38
Question posted in the National Credit Act Law category relating to Gauteng

SA Legal Advice

Attention Patrick

Re: Response to your letter of 15.05.2015 -Rehabilition EP Kuhn 13.11.12

I am in possession of a letter, 3 March 2015, from Breytenbach, Mostert, Skosana Incorporated, which states,

“Transunion Credit Bureau/ Errol Peter KUHN.
We refer to the above and transmit herewith our clients confirmation that the relevant data pertaining to you clients’ rehabilitation has been removed from his profile”.

My understanding , from my attorney, is that my REHABILITATION on 13.11.12, means that my name is clean and that all past history has been eradicated and that it should be as if I have “just left school”, with no derogatory records.
As your reply to me states, ”you can contract again in your own name and you can incur debt”.

I have already attempted to open an account with Edgars but they declined me, on the grounds that my points are too low. I wish to explain that buying clothes is not my primary concern, at this time and my ultimate goal is to gain a credit card.
I must also point out that ALL BANKS including my own Standard Bank will not give me a credit card.

In light of the above mentioned , I would appreciate it if you would kindly relook at my situation which is self employed, I do not want to carry cash with me and I need to buy goods for my business and having a credit card is a necessity to me rather than a luxury.

Please advise me on how to proceed further.
Kind Regards

Errol Kuhn

Message from the Attorney

Posted by Att. Patrick on 24-05-2015 14:46:17
Hi there again Errol,

I hear what you are saying, and I can assure you that this sort of thing happens all of the time. Applying for a credit card is not the first thing that you should be doing. You should first apply to smaller stores for credit, then move to bigger stores once you've increased your points, and only then apply for a credit card.

Also, you've applied to "ALL BANKS", and that means that all credit providers can see that you've applied to "ALL BANKS" for credit, and were declined from all of those banks. You've essentially shot yourself in the foot, as ABSA bank would immediately decline you if they saw that Standard Bank declined you, and that would lead to a chain reaction of FNB, Capitec, et al declining you because of the others....

Also, you're self-employed, which means that you are not receiving a guaranteed income (salary/wages) each month. This is yet a further massive indicator to the banks that you're "not a good candidate" for credit.

Also, you say that you want to use your credit card to buy goods for your business. If you tell your banks that then they will most certainly decline your application as they would argue that you should get a business loan if you want to buy goods for your business.

You are going about this in the wrong way I'm afraid. You need to start small, then move onto bigger stores, then credit cards. 

If there is a part of the answer which you need more advice on, or clarity please continue in this same thread instead of opening a new question.

Att. Patrick

Please remember this is a dialog if you have follow up questions please use the REPLY button and ask. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered. I hope you found my answer helpful, and you have finished asking your questions, please click on the GREEN ACCEPT button in order to mark the question as closed.
If you would like to view the entire answer, you will need to either login or register a FREE account.

Disclaimer

DISCLAIMER: Advice or answers from Lawyers on South African Legal Advice are not substitutes for the proper advice of an Lawyer. South African Legal Advice is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Lawyer who assists with your question is not your Lawyer, and the response above is not to be considered to be legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains. The responses above are from individual Lawyers, not South African Legal Advice. The site and services are provided “as is”. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.