Who can and cannot list consumers:
(a) Members of the CPA
If you are a member of the CPA, then the listing of default information must be done via your monthly payment profile submissions to the credit bureaus.
(b) National Loan Register (NLR) data suppliers –
If you are an NLR data supplier, you cannot list defaults in public domain. This is because public domain defaults are not created for data that is submitted to the NLR.
(c) If you are not a CPA or NLR member, the provisions set out in 1.1 below may apply to you.
1.1 In terms of Regulation 18(6) registered credit bureaus may receive, compile and report information on a consumer relating to:
(a) The status and history of a consumer’s outstanding obligations and payments relating to goods, services or utilities supplied to the consumer. For example, bureaus can report information from non-credit providers, including telephone, water and electricity payment information.
(b) Information relevant to credit fraud detection and prevention.
(c) Payments made by consumers relating to debts that have been ceded or sold to another party by a credit provider.
(d) Information that is not related to and not intended for the purpose of providing consumer credit, provided that the consumer’s consent has been obtained. For example this would include consumer information that is not pertinent to credit risk assessment, provided the consumer has consented thereto.
2. Non- Permissible Listings regardless of consumer consent
2.1 Cheques – data suppliers may only submit negative information relating to cheques marked “Returned to Drawer” if it is on the grounds of insufficient funds.
2.2 Prescription – Regulation 19(5) provides that data suppliers must not submit information to a credit bureau that has prescribed. You may not list a debt that has prescribed as the debt is extinguished after 3 years. Where it is found that a default listing relates to a debt that has prescribed, the listing will be removed.
2.3 Duplicate Listings – where listings are made by a data supplier who subsequently sells the book debt and the purchaser of the book debt lists the debtor for the same debt, the latter listing by the purchaser will not be permitted. Where it is found that a default listing is in respect of a debt that was previously listed either as a default or judgment, the second listing will be removed.
2.4 Insurance Commissions – payment or non-payment of commissions owed by insurance brokers to insurance companies has no bearing on the creditworthiness of either party and will not be recorded by any credit bureau. Such commissions arise out of an agency agreement between the insurance broker and the insurance company and not a credit agreement.
2.5 Listings in relation to SABC television licences, maintenance orders and road traffic fines, are not permitted as the obligation to pay does not arise out of a credit agreement.
2.6 Cost Orders – any listing relating to a cost order awarded in favour of a party is not permitted as it has no relevance to the assessment of creditworthiness or credit risk, as it does not arise out of a credit agreement.
NB: Consumer consent does not validate any of the above mentioned listings as industry agreement has been reached on these issues by all credit bureaus, the Credit Ombud and the National Credit Regulator; and the CBA has issued policy directives in line with these industry agreements.
3. Submission of Consumer Credit Information
Regulation 19(4) provides that all data suppliers MUST provide the affected consumer with 20 business days’ notice of its intention to submit adverse information to a credit bureau before submitting the adverse information to a credit bureau.
4. Display and Retention Periods for Commercial Credit Information
All credit bureaus have resolved to apply the same rules applicable to the display and retention of consumer credit information to commercial credit information.
