CREDIT AMNESTY INCREASE EMPLOYMENT

The DTI has issued orders to stops employers from denying employment opportunities to blacklisted South Africans. This comes after the Minister of Trade and Industry published regulations for the Removal of Adverse Credit Information and Information Relating to Paid Up Judgments.

The minister expressed concerns about employers who abuse the act in order to deny blacklisted people employment. In a statement he said:

We have been inundated with correspondence from the public showing clearly that the blacklisting at the credit bureaus has now become a new impediment to employment opportunities. With the unemployment rate of 24%, it is our priority to create a conducive environment for employment opportunities to be created, and thus government has taken a decision to address this challenge. 



We caution companies to refrain from using the blacklisting information held by credit bureaus incorrectly to deny people employment. We accept that in some financial positions, such as those in the banking sector, the credit bureau information can be used as a reference in considering persons for employment in that sector. However, we will not allow the continued abuse of consumer credit information held by credit bureaus for dubious reasons. We have impressed on the NCR to monitor the use of consumer credit information held by the credit bureaus very closely."

While others can turn a blind eye to the predicament of many South Africans, it is difficult to ignore instances such as the one contained in the email that the dti received yesterday from a 54-year-old father with four sons, who is currently unemployed and cannot get employment due to his negative credit record. In his email he desperately says “Bottomline is, I (listed in red with credit bureau) need to earn money in order to achieve and maintain a positive credit record, but if I am refused any work, how on earth can I repay my debt and clear my name? I am certain that your department will come up with a solution for this national problem in the near future.”  

This is one of the many emails received, including from graduates that cannot find jobs due to blacklisting arising from student loans. The purpose of this process is to assist people who are in the same situation as this 54-year old father and those graduates that wish to be employed so they can be able to repay their student loans.

This is good news to blacklisted people who might have been denied employment and personal loans because of their ITC records.

We will keep you updated on developments and new regulations to be posted by DTI in next week. To receive this update just enter you email below.

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