In terms of Section 70 of the National Credit Act (NCA), a credit bureau is an entity that collects, compiles and reports consumer credit information, filed from any credit provider, for the purposes of credit scoring or credit assessment.
What is the Role of a Credit Bureau?
When a consumer approaches a credit provider and applies for credit, the credit provider will ask a credit bureau for the consumer's credit information. A credit report is supplied to the credit provider; this includes a credit score. The credit provider would then use the consumer's credit score and other details to determine the risk assigned to the consumer's ability to repay their debts.
Read more about how to improve credit scores and understand the risks of a poor credit score.
What Consumer Information is Kept by the Credit Bureau?
The credit bureau may receive the following information about a consumer:
- payment history and status (e.g. late payments);
- information that is relevant for credit fraud detection and prevention;
- payment history in respect of debt ceded or sold by credit provider to third parties.
The consumer has the right to access and challenge credit records and information kept by the credit bureau. Here is how to correct errors in your credit report.
How Long do Credit Bureaus Retain your Information?
The National Credit Act prescribes the maximum period for which consumer credit information may be recorded on the consumer’s credit record. Regulation 17(1) of the NCA sets the maximum periods for the retention of credit bureau information as follows:
| CATEGORIES OF CONSUMER CREDIT INFORMATION | DESCRIPTION | MAXIMUM PERIOD |
|---|---|---|
| Details and results of disputed lodged by consumers | Number and nature of complaints lodged and whether complaint was rejected. No information may be displayed on complaints that were upheld. | 6 months |
| Enquiries | Number of enquiries made on a consumer’s record, including the name of the entity/person who made the enquiry and a contact person if available. | 1 year |
| Payment profile | Factual information pertaining to the payment profile of the consumer. | 5 years |
| Adverse classifications of consumer behaviour | Subjective classifications of consumer behaviour. | 1 year or within fourteen business days after settlement by the consumer. |
| Adverse classifications of enforcement action | Classification related to enforcement action taken by the credit provider. | 1 year or within fourteen business days after settlement by the consumer. |
| Debt restructuring | As per section 86 of the Act, an order given by the Court or Tribunal. | Within the period prescribed in section 71(1) of the Act or until a clearance certificate is issued. |
| Civil-court judgments | Civil-court judgments including default judgment. | The earlier of 5 years or until the judgment is rescinded by a court or abandoned by the credit provider in terms of section 86 of the Magistrates’ Courts Act 32 of 1944 or within the period prescribed in section 71A of the Act. |
| Administration orders | As per the court order. | 5 years. |
| Sequestration orders | As per the court order. | 5 years or until the rehabilitation order is granted. |
| Rehabilitation Orders | As per the court order. | 5 years. |
| Maintenance judgments in terms of the Maintenance Act 99 of 1998 | As per the court judgment. | Until the judgment is rescinded by court. |
Worried About your Information with Credit Providers?
If you feel uncertain about your information with credit bureaus, Debt Sage can assist in the following ways:
- obtaining your credit reports;
- studying the information listed on your credit reports;
- negotiating repayments to settle outstanding debts in order to have the information removed;
- identifying information that qualifies for removal; and
- identify information that does not qualify for removal, and advise what can be done to remove this information from your credit reports.
Reach out to us to get started.