Continuing to refuse to pay your TV licence could eventually damage your credit record, according to Stefanie Fick, executive director of the accountability division at the Organisation Undoing Tax Abuse (OUTA).<\/p>\n
MyBroadband received a complaint from a reader who had been informed by the SABC that he was handed over to the TV Licence debt collection agency for being two months behind on his TV licence payment.<\/p>\n
This made him worry that he could be blacklisted by the SABC or have his credit record impacted negatively.<\/p>\n
Fick, however, said that the SABC was not a credit provider, as credit required money to be borrowed and paid back over time. By contrast, TV licences were paid upfront \u2013 either on an annual or monthly basis.<\/p>\n
This means the SABC is not able to list a consumer as defaulting on a credit commitment, which banks or retailers could do.<\/p>\n
\u201cNon-payment of your TV licence is not credit provided by the SABC, it is more like a tax,\u201d Fick said. Therefore, the initial failure to pay your TV licence would have no bearing on your credit score.<\/p>\n
However, matters could change if you remained defiant while you were in the possession of a TV.<\/p>\n
How your credit record could be impacted<\/strong><\/p>\n Fick said if the SABC obtained a court order or default judgment against you for outstanding payments, your credit record could take a hit. For this, it would have to institute formal legal proceedings, including issuing you with a court summons.<\/p>\n In addition, Fick said that the Broadcasting Act determined that any person who was found guilty of contravening or failing to comply with the TV licence requirement could be fined up to a maximum of R500 and\/or to imprisonment for a period of up to six months.<\/p>\n According to\u00a0credit agency Transunion<\/strong><\/a>, a judgment remains on your credit record for 5 years, until it is paid in full, or a rescission is granted by the courts.<\/p>\n Despite not being a credit provider, the SABC can charge a fee for every month for which the licence holder is behind on payments. This would be equal to 10% of the annual fee (R28.50) or up to 100% per annum (R285).<\/p>\n This is not the same as interest on credit, as the maximum amount would still be equal to the fee and not an additional cost. If you were one year behind on payments, you will only be liable for an annual fee, unless the SABC takes you to court and you are fined the additional R500.<\/p>\n