7. The credit bureau
Page 1: Introduction to Credit Reporting
Overview of Loan Credit Report
Role of The Consumer Manager
Importance of Credit Bureaus in monitoring consumer credit
Page 2: Legislation on Credit Bureaus
National Credit Act 34 of 2005 (NCA)
Regulates credit bureaus and mandates registration with National Credit Regulator (NCR).
Specifies what information credit bureaus can collect:
Sources of Information: Credit providers, government, courts, insurance companies, educational institutions, debt collectors, and fraud investigators.
Consumer Rights regarding access to personal credit information.
Page 3: Credit Information Recorded by Bureau
NCA Regulations on Consumer Credit Information
Composition of credit information:
Credit history: Contracts, debt reviews.
Financial history: Income, assets.
Personal info: Residence, ID details, career.
Restrictions on Information Collection
Sensitive information cannot be stored:
Race, political affiliation, sexual orientation, medical history, religion.
Page 4: Retention Periods
Definition: Duration credit bureaus retain consumer credit information.
Importance of understanding retention periods for different types of information:
Disputes lodged
Enquiries
Payment profile
Adverse info
Debt restructuring
Civil court actions
Sequestrations
Liquidation
Rehabilitation
Page 5: Missed and Negative Payments
Consequences of not meeting credit obligations:
Negative marks can hinder future credit access and interest rates.
Emphasis on timely bill payment.
Opportunity to rebuild credit score despite negative information.
Page 6: Consumer Rights on Incorrect Listings
Consumer Rights Regarding Credit Bureau Information
Notification Requirement: 20 business days' notice before negative information is sent to bureaus.
Consumers must be informed of listed information prior to reporting.
Right to challenge incorrect information:
Bureau must validate within 20 business days.
If validation is unsatisfactory, NCR has 20 business days to investigate.
Page 7: Use of Consumer Credit Information
Conditions under which credit information can be used:
No consumer consent needed for affordability assessments, fraud investigations, and debt tracing.
Consent Required for job applications, service utilities, insurance assessments.
Major Credit Bureaus in South Africa:
Experian (personal & business)
TransUnion (personal & business)
Compuscan (micro-lending)
Page 8: Consumer Protection Act Overview
Act Number: 68 of 2008.
Signed in April 2009, enforced from April 1, 2011.
Applies to all transactions involving buying, selling, and promotional goods/services in South Africa.
Page 9: Consumer Rights under the Act
Key Consumer Rights
Right to equality in access to goods/services.
Right to privacy, with the ability to restrict direct marketing.
Right to choose and cancel agreements; receive safe and defect-free goods with refunds.
Page 10: Right to Disclosure of Information
Information Clarity Requirements
Contracts must be clear, in plain language.
Right to return unsatisfactory products.
Pricing transparency and accuracy on product labels.
Page 11: Fair and Honest Dealing Rights
Prohibitions on misleading marketing and overbooking.
Consumers entitled to quality service and clarity on pricing, quality, and safety.
Page 12: Aims of the Consumer Protection Act
Promote fairness and accessibility in the marketplace.
Establish consumer protection standards and guidelines.
Enforce consistent laws in consumer interactions.
Page 13: South African Bureau of Standards (SABS)
Overview of SABS
Established in 1945 to regulate quality of products/services.
Develops national standards (over 6000) and represents South Africa in international standards.
Certification services offered to businesses; SABS mark indicates compliance with quality standards.