Gabriel Davel, CEO of the National Credit Regulator, says that nearly half (45,3%) of the 18,07-million credit-active, consumers on record are struggling to meet their debt obligations.
The number of accounts falling within the three-and-over months’ arrears category has risen by just over half a million accounts to 10,16-million in the quarter ended December 2009.
The number of consumers with impaired records is still increasing, with an increase of 90 000 over the previous quarter and an increase of 880 000 over the previous year. However, the percentage increase is the lowest that it has been in two years, indicating that the level of debt stress may be easing.
The volume of credit enquiries reached 146,88-million in the quarter to December 2009, reflecting a higher increase than that of the December 2008 quarter — 1,3-million enquiries versus 430 000.
The number of inquiries made on consumer credit records during the quarter increased by 0,4% quarter-on-quarter and 44,7% year-on-year. The statistics do indicate a continued increase in overall marketing of credit products. However, a significant percentage of inquiries appear to relate to risk management by banks and retailers.
A pleasing trend is evident in the increasing demand by consumers for access to their personal credit records. There were 65 082 free credit reports issued for the December 2009 quarter and consumers had to pay for 10 935 credit reports. Consumers lodged 10 573 disputes on information held on their credit records, a 1,7% increase quarter-on-quarter and 17,2% increase year-on-year.
The demand for access to personal credit records is likely to be sustained as credit bureaus and the National Credit Regulator continue to implement campaigns encouraging consumers to review and manage their credit information. Individuals can apply for one free credit record a year from credit bureaus.
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