Removing a Judgment Legally: What Credit Bureaus Don’t Tell You

In a struggling economy, judgments and adverse listings block many South Africans from credit; Rynhardt de Lange explains how they can be legally removed.

With nearly 72% of adults living on less than R140,000 a year and more than a third of borrowers already struggling to repay their loans, it is alarming how little many understand about judgments and adverse listings. Often described as “blacklisting,” these entries are seen as permanent marks that block financial freedom. Yet, in reality, they can be disputed and removed if they have been obtained illegally and/or if the judgment debt has been repaid in full.

Rynhardt de Lange, Director and Head of Legal at Milaw Legal, explains that few people realise that settling a debt does not automatically clear a judgment. These entries can stay on your credit record long after the debt has been paid, up to 30 years in the case of a judgment.

“12 million South Africans are over-indebted, but that doesn’t mean their record should block them forever,” says De Lange. “You might be paying cash for everything, not because you want to, but because an old adverse listing won’t let you qualify for credit.”

Why Paying Isn’t the Same as Removing

He explained that a judgment occurs when a credit provider takes you to court for non-payment and obtains a ruling against you. In most cases, this is a default judgment, which means the summons was not contested. This listing lands on your credit record, flagging you as a high-risk borrower. Paying off the debt only settles what you owe does not erase the judgment itself. It remains visible to banks, landlords, insurers, and even employers until you apply to have it legally rescinded.

“We’ve seen clients who paid their debts years ago but still can’t qualify for affordable credit, rent a flat, or even get certain jobs. That’s because the judgment is still reflecting on their credit record.”

The Everyday Cost of Bad Credit

A negative listing can block access to housing and limit job prospects in industries where employers run credit checks.

For millions of South Africans already struggling to make ends meet, the situation is even more frustrating when an outdated listing stands in their way. According to the latest FinScope South Africa survey by FinMark Trust, 43% borrowed money for food last year alone, making these barriers feel both unfair and discouraging.

“The good news is that the law allows for judgments and certain defaults to be removed. Not every debt stays on your name forever, said De Lange. “If you’ve settled your account and have a paid-up letter, if the listing was made in error, or if the debt has prescribed and no judgment has been obtained (expired because of time), you may qualify for legal removal,” he said.

Why Don’t More People Know This?

De Lange said consumers are not always aware of their rights and the processes involved to remove adverse listings on their credit reports. “People assume they have to wait out the blacklisting or live with the shame of bad credit forever,” says de Lange. “But the law offers real solutions, provided you know about them and follow the right process through the courts.”

He offered the following advice for consumers:

• Check your credit report for judgments or adverse listings.
• Know your rights – paying a debt doesn’t remove the listing automatically.
• Keep proof – paid-up letters, prescription notices, or error evidence.
• Seek legal help to dispute or remove incorrect or outdated listings.
• Act quickly – unresolved listings block credit, housing, jobs, and insurance.

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Author: Omega Ngema from Financial Wealth Holdings on behalf of Milaw legal.