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Thread: Benefits or Risks of a National Register of Credit Agreements

  1. #1
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    Benefits or Risks of a National Register of Credit Agreements

    There are currently a number of Private Credit Bureaus operating in South Africa, that have access to a wide range of consumer information and are used by credit providers when assessing risk and granting credit to consumers.
    According to the national credit act the National Credit Regulator has the authority to set-up a National Register of Credit agreements, which will most probably hold similar information as the private credit bureaus.
    I am interested to hear your opinions regarding what possible benefits or risks there might be to credit consumers if the NCR would set-up such a register.

  2. #2
    Site Caretaker Dave A's Avatar
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    You got me re-reading section 69 of the NCA.

    Here's a line of thought (by all means correct me if I'm wrong).

    Without a national credit register being in place, the requirements of S69 are of no force and effect.
    Therefor there is no obligation on credit providers to report credit agreements as set out in S69.

    So why are credit providers reporting credit agreements to third parties without the consumer's permission?

    For example, my bank manager is aware of credit cards and their limits that I hold at other financial institutions. I took this as being a result of S69...

  3. #3
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    The NCRA is not meant to be another form of credit bereau. Its aim is to have all important credit data available, except payment history. All credit agreements, except pawn transactions and incidental transactions, must be registered.
    The key aim is in order that a credit provider cannot say they were not privy to certain information. remembering that the credit provider has the onus to show that they did due diligence before providing credit to a person when challenged.

    The reporting of details to third parties relates to the credit bureaus and not the NCRA itself.
    Dave is correct in that such information requires permission.
    You may refuse an employer or credit provider permission to access any records and the information may only be used for the purpose permission was granted.
    Most credit agreements have clauses granting permission to share any info with credit bureau and that they may pass it on to other agencies. in theory you may object to such clause. Practically it probably means they wont grant the credit and you will have to fight it.
    Anthony Sterne
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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