According to the Credit Bureau Monitor Research Report of March 2010 the percentage of consumers in good standing continue to decline. This is an indication that debt stress levels are still high. The percentage of consumers with impaired records increased to 46.0% from 45.3% in the last quarter – comprising 17.2% of consumers in 3-plus months in arrears, 15.0% of consumers with adverse listings, and 13.7% of consumers with judgments and administration orders.

Econometrix, a specialized consultancy firm providing quantitative economic analysis and modelling for business decisions also highlighted that, “Growth in consumers with impaired records remained concerning at 12.2% y/y in the first quarter of 2010, which is marginally higher than 12.1% y/y in the previous or fourth quarter of 2009, with judgments and adverse listings absorbing much of the rise. The above suggests that household balance sheets remain under strain despite the economy’s recovery from the recession.”

Based on the above research it is apparent how essential it is for all credit providers to carry out a full credit check on all credit applicants and to do period credit checks on their accounts or existing clients to monitor and manage their credit risk. This includes looking at judgments, admin orders, collections, defaults / adverse information and debt restructuring information. The more data on a credit report, the better the view on an applicant.

If you are currently only making use of the National Loans Register (NLR), Compuscan urges you to rethink the use of our other data offerings. We collect public domain information from over 500 courts throughout South Africa and detailed adverse / default information from the Credit Providers Association (CPA), subsequently ensuring that you know exactly who you are dealing with when you extend credit.

For a copy of the NCR’s Credit Bureau Monitor March 2010 Report, please click here.

Should you require more information on the types of data Compuscan has on offer, please click here or should you have any questions please contact us at Tel: 021 888 6000 or e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it