Consumer Rights On Credit In South Africa

by


As a consumer in South Africa under the National Credit Act (NCA), you have the right to:

a) a understandable credit agreement in plain language.
b) a quote and pre-agreement statement, binding for 5 days.
c) advertising and marketing which contains all the information on the cost of credit.
d) limited credit sales while you are at work or home.
e) information on why a credit application was rejected.
f) the regulation of automatic credit line increases.
g) the prohibition of reckless lending.
h) regulated fees and interest on all credit agreements.
i) regulated credit bureaux and the right to receive one free credit report per year. Note: The two major credit bureaus in South Africa are TransUnion and Experian. You can get your free credit report from Experian at ( www.experian.co.za ). You can get your free credit report from TransUnion at ( www.transunion.co.za ).
j) assistance when over indebted.
k) debt counseling to restructure debts.

More information on the Nation Credit Act of South Africa can be found at ( http://www.ncr.org.za/Consumer_Booklet.php ).


Information That Is Contained On Your Credit Report In South Africa

Information listed on your credit report in South Africa is:

a) your credit history ( such as credit agreements signed, repayment history and if you are under debt review ).
b) your financial history ( such as past and current income, assets and liabilities ).
c) other personal history ( such as education, employment, career history, ID number, Name, date of birth, physical address, marital status and contact details).

Information that may be retained by the credit bureau in South Africa includes:

a) payment information regarding continuous services.
b) information on payment made where the debt was ceded.
c) any other information, provided that you gave consent for this information to be sent to the credit bureau and that the credit provider has informed you on what this information will be used for.

Information that may not be kept by the credit bureau in South Africa under the National Credit Act (NCA) includes:

a) race
b) political connection.
c) medical status/history.
d) religion or thought, beliefs or opinion.
e) sexual orientation.
f) membership of a trade union.



How Long Does Information Stay On My Credit Report In South Africa?

Under the National Credit Act (NCA) in South Africa, information can only be kept or retained on your credit report for a set period of time as stated below.

a) Disputes filed - 18 months
b) Inquiries - 2 years
c) Payment profile -5 years
d) Information related to a consumers payment behavior such as slow payer, defaulted or absconded - 1 year
e) Information relating to the action that a credit provider has taken against a consumer to enforce a debt such as handed over, legal action or write-off - 2 years
f) Debt restructuring - Until a clearance certificate is given
g) Civil court judgments - 5 years or until the court removes it
h) Administration orders (orders to put a consumer under administration) - 10 years or until the court removes it
i) Sequestrations (order given by the court where the consumer is insolvent) - 10 years or until the court removes it
j) Liquidations (order given by the court where the consumer is insolvent) - no time limit
k) Court order removing a liquidation or sequestrations after all the debt was paid - 5 years
l) Other information (information not covered above) - 2 years

Other Useful Topics

Learn how to dispute information on your credit report in South Africa.

Although all information has been written in good faith and reviewed, please email us at help@consumerbadcreditguide.com to report any inaccuracies.