A credit bureau, South Africa based, must be registered with the National Credit Regulator (NCR) which is responsible for the enforcement of the National Credit Act No 34 of 2005. The registered credit bureau in South Africa can be described as a firm that is registered to collect information and updates of the credit spending and payment of a consumer.
As such this institute creates records of the consumer’s credit history including the effective management of credit by the consumer.
Any such bureau operating in South Africa must, when registering with the NCR, indicate the purposes for which it will gather consumer credit information and to which types of companies the registered bureau will supply information. It must furthermore stipulate the standards used to ensure data accuracy.
Boundaries provide information about consumers to banks, retailers, and other credit providers to help them get an idea of the consumer’s ability to pay debts and manage such.
For this purpose a credit bureau can collect information about judgments against a consumer, blacklisting, debt review status, employment status, contact details, current and past debts and records of non-payment, debit order bounces, cheques not cleared, fraudulent actions, and late payments.
Consumers have the right to file complaints regarding records at a credit bureau, South Africa based. The first step is to contact them to correct information on their records. If the complaint is not addressed the consumer can contact the Credit Information Ombudsman or the NCR for assistance.
In essence then, the credit bureau in South Africa has as function collection of consumer credit information and must comply with the regulations of the National Credit Act enforced and overseen by the NCR. Its purpose is not to spy on consumers, but rather to protect credit providers against reckless debt creation.