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National Credit Amendment Act and Regulations

National Credit Amendment Act and Regulations

Legal Update Affecting Credit Bureau Consumer Profile Searching

What you need to know…

The National Credit Amendment Act (NCAA) and Regulations were released 13 March 2015 which affect data reflected on Credit Bureau Consumer Profiles. All Credit Bureaus are working on processes for compliance. Please take note of the following changes:

Removal of adverse consumer credit information
All adverse information recorded at a Credit Bureau will be removed once the debt has been settled. Creditors must inform the Credit Bureau within 7 days of the consumer settling the default amount.

Changes made to the retention periods for displaying information on the Consumer Profile Report

Category of Consumer Credit Information Description Maximum Period Comments
Details and results of complaints Number and nature of complaints lodged and whether a complaint was rejected; no information will be displayed on complaints that were upheld
Note: WinCredit does not display this information
6 months Previously 18 months
Enquiries Number of enquiries made on a consumer’s record, including the name of the entity/person who made the enquiry and a contact person if available 1 year Previously 2 years
Payment profile Factual information pertaining to the payment profile of the consumer
Note: WinCredit does not display this information
5 years No change
Adverse classification of enforcement action Classification related to enforcement action taken by a credit provider 1 year (or deleted when settled) Previously 2 years
Adverse classification of consumer behaviour Subjective classification of consumer behaviour 1 year (or deleted when settled) Previously 1 year
Debt restructuring As per section 86 of the Act, an order given by the court or tribunal Within the period prescribed in section 71(1) of the Act or until a clearance certificate is issued Previously until a clearance certificate is issued
Civil court judgments Civil court judgments including default judgments The earlier of 5 years, rescission or abandoned by the credit provider Previously 5 years
Maintenance judgments in terms of the Maintenance Act As per court judgment Until the judgment is rescinded by a court This is a new category of data not previously held by the Credit Bureaus
Sequestration As per the court order 5 years or until rehabilitated Previously 10 years
Rehabilitation As per the court order 5 years No change
Administration order As per the court order 5 years or until order is rescinded by a court Previously 10 years or until rescinded by a court
Liquidation Removed Previously for an unlimited period
Other information Removed Previously for a period of 2 years

 

Requirements prior to loading adverse information (defaults) to a Credit Bureau
Changes in requirements will result in the following:
• Prescribed debt will not be loaded on a Credit Bureau.
• Adverse information will only be loaded if a minimum instalment has not been made for a minimum of 3 consecutive billing cycles.
• Consumers will be given 20 business days’ notification of intention to list.
• Adverse information will not be listed where the consumer paid any arrears owing on the account, settled within the  20-business-day notification period.
• Arrears settled subsequent to the listing will be removed from the Credit Bureau (in the following data submission).

Consumer Profile searches for the purpose of employee screening
A consumer credit record may not be accessed by an employment agency, recruitment consultant, staffing company or employer unless they certify that the request for a consumer credit record relates to a position requiring honesty in dealing with cash or finances and the job descriptions of such positions are clearly outlined.

Click to read the details of the National Credit Amendment Act (NCAA) and Regulations