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| Maintenance judgments in terms of the Maintenance Act | As per court judgment | Until the judgment is rescinded by a court | This is a new category of data not previously held by the Credit Bureaus |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 |
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