The Act requires registration of all credit bureaux. This excludes credit providers or employees of credit providers. An entity qualifies to register as a credit bureaux if it is engaged in the business of receiving reports or investigating credit applications, credit agreements, payment history or patterns, or consumer credit information relating to consumers or prospective consumers. These entities must also be in the business of compiling and maintaining data and issuing reports concerning consumers.
Requirements for registering as a credit bureau as per Section 43, and regulation 4 of the National Credit Amendment Act, 19 of 2014:
1. The National Credit Regulator will not register a person as a credit bureau unless that person -
- Maintains and imposes appropriate qualifications, competence, knowledge and experience requirements for its employees or contractor who will have the authority to represent it in any function under the Act;
- Has sufficient human, financial and operational resources to enable it to function efficiently and to carry out effectively its functions in terms of the act or presents a credible plan to acquire or develop such resources;
- Has adopted procedures to ensure that questions, concerns and complaints of consumers or credit providers are treated equitably and consistently in a timely, efficient and courteous manner, or presents to the NCR a credible plan to acquire or develop those procedures and;
- Is registered with the South African Revenue Services.
2. In addition to the requirements of section 46, a person may not be registered as a credit bureau if any person who has a controlling interest in the applicant is –
- a credit provider;
- a debt collection agency; or
- a person who conducts any disqualified business prescribed in terms of subsection (5).
3. A natural person may not be registered as a credit bureau.
Documents and information required for the application for Registration as a Credit Bureau in terms of Section 43 of the National Credit Amendment Act, 19 of 2014:
- Completed and signed application form (Form 5).
- Brief description of the organization’s business model.
- Companies and Intellectual Property Commission ( CIPC ) registration document or other legal registration document.
- Copy of the organization’s share certificate.
- Certified copies of ID/Passports of all members/directors or trustees .
- Resolution of applicant (see attached specimen).
- A Criminal Clearance Certificate for all the members/directors or trustees issued by the South African Police Services (SAPS) or other service providers listed in the annexure attached hereto marked A. The clearance certificate must not be older than six (6) months.
- Proof of payment of the registration fees:
- Non-refundable application fee of R550;
- Branch fee of R250 per location or premises at or from which the applicant conducts registered activities;
- Initial registration fee as indicated in the table below:
R11 000, plus R5 per 1000 consumer credit enquiries. But not to exceed R210 000.
The consumer credit enquiries is the number of consumer credit enquiries for the past 12 months period up to the end of the last month prior to the date of application for registration as certified by the CEO of the applicant
- A letter from the bank confirming the applicant’s banking details or a copy of a cancelled blank cheque or a stamped copy of the bank statement.
- Proof of registration with the South African Revenue Services (SARS).
- High level Organogram of the Organisation, including CEO and the 1st level of senior Management;
- Information of the CEO and 1st level of senior Management:
- Name of employee;
- Position in organization;
- Experience (number of months, years in current role and similar role).
- Shareholding information of the organization (group structure). Copies of the legal registration documents and nature of business for each entity within the group (if applicable).
- List of key contractors/outsourced service providers of the organization and the services that they provide;
- Copies of the service level agreements (SLA) with the key contractors/outsourced service providers;
- Copies of the HR policies and procedures:
- code of conduct and disciplinary code;
- performance management.
- Copy of the training budget.
- Copy of the latest external audit management letter (if applicable).
- Copy of the latest internal audit submission to the main Audit Committee (if applicable).
- Copy of the latest management accounts.
- Copy of the latest audited financial statements.
- Copy of any due Diligence/Limited assurance report by external parties that was issued in the past 12 months (if applicable).
- Copy of the procedures that deal with the following:
- Acceptance of filing of consumer credit information;
- Accuracy of consumer credit information;
- Retention of consumer credit information;
- Maintenance of consumer credit information;
- Expunge of records that are not permitted.
- New customer on-boarding procedure
- Copy of information security policy.
- Business continuity management plan.
- Copy of disaster recovery plan.
- List of exception reports run on data (e.g. Duplicate ID numbers).
- Information on current litigation against the organization.
- Type, number and value of cases;
- Copy of the policy and procedures for handling questions, concerns and complaints of consumers or credit providers.
- Process map indicating the flow of information.
- A detail overview of the IT infrastructure, systems and IT resources.
- PRO / Customer Liaison. A detailed overview of the company’s client base. The company’s value proposition and benefit to the consumer details of current consumer awareness campaigns and education drives and the target markets and audiences (relevance to Section 13 (a) and Section 72 (1) of the National Credit Amendment Act).
- Data. An overview of the company’s strategy and processes around data. Data sources, verification & validation processes, processes around loading and storage of data and processes with data suppliers and data sources (relevance to Regulation 17, 18, 19, 20 Section 70 (2), (3), Section 71 and Section 72 of the National Credit Amendment Act).
- Commitment in respect of credit bureau reporting requirements as stipulated in regulations 70 and 71.
NB: The applicant must appoint an independent auditor to conduct a due diligence review and report to the NCR on whether or not the applicant meets the above summarized minimum criteria. (See attached terms of reference for performing the due diligence review).