Regulations on Consumer Credit Information

Section 73 of the National Credit Act (NCA) provides that the Minister of Trade and Industry must publish regulations on how consumer credit information held by credit bureaux must be reviewed, verified, corrected and removed. Regulations have been published by the Department of Trade and industry.

Regulations made in terms of Section 73 of the NCA have been published.

These Regulations prescribe the nature, time frame, form and manner in which credit information held by credit bureaux must be reviewed, removed, verified and corrected in terms of the above section.

According to these regulations, the following consumer credit information must be removed:

1. Adverse consumer credit information in respect of a debt of less than R500;
2. All consumer credit information relating to accounts, excluding credit facilities and any accounts where there was no contractual requirement for monthly payment to be made, that have been dormant for a period of at least 24 months on 1 September 2006;
3. Consumer credit information related to civil court judgment of up to R500 except if a consumer has more than two unpaid judgments;
4. Consumer credit information related to a civil court judgment of up to R5000 if the judgment is older than 18 months provided the consumer has not more than two unpaid judgments on his or her records;
5. Consumer credit information related to a civil judgment of up to R50 000 if the full amount in respect of the judgment was paid by the consumer by 1 September 2006;
6. Consumer credit information related to civil court judgment of up to R50 000 reflected on a consumer’s records on 1 September 2006 if the full amount in respect of the judgment is paid by 1 September 2007.

In addition to the above a registered credit bureau must submit an audit report conducted by an independent auditor by 31 August 2007 to the NCR addressing and assessing issues covered by the Regulations.

A further audit must be done by 31 March 2008 in accordance with the regulations. This will amongst others, verify whether all information referred to above has been removed as well as to make recommendations for further interventions to be implemented to ensure full compliance with these Regulations.

Please note that credit bureaux must remove or correct this information by
1 June 2007. Consumers are however entitled to a free record which may only be obtained from their birth month onward in accordance with the table below. Alternatively consumers can request the credit bureau record, which will cost not more than R20.