National Credit Regulator wins high court case

The National Credit Regulator (NCR) is typically vigilant when it comes to ensuring that credit bureaux, debt counsellors, credit providers and so on comply with the National Credit Act (NCA). To this end, the NCR has focused on the South African Fraud Prevention Services (SAFPS) with a view to regulating them if they are, indeed, operating as a credit bureau.

The SAFPS took a compliance notice issued by the NCR instructing SAFPS to register with the NCR to the National Consumer Tribunal. The Tribunal found in the SAFPS’s favour by rejecting the assertion that the SAFPS is operating as a credit bureau. The NCR disagreed and took the matter on review to the Pretoria High Court, which has now ruled that the SAFPS needs to register as a credit bureau within 21 days or cease to receive and submit reports.

What does the SAFPS do? The Section 21 company is a not-for-profit s association that focuses on preventing financial crime. It is funded by its members’ annual subscription fees, many of whom belong to the financial services industry, which includes credit providers. The SAFPS has a fraud prevention database that allows members to file information relating to possible fraud.

Because the SAFPS has been found to have contravened the provisions of section 43 of the NCA, which stipulates that anyone paying for credit reports should register as a credit bureau, the NCR believes it should register as a credit bureau so it can be regulated as one. The SAFPS has, however, argued that is not operating as a credit bureau.

“We are not saying the SAFPS is not a good organisation; not at all,” argues Jan Augustyn, manager investigations and enforcement at the NCR. “They may in fact be doing very good work. But in order to protect the consumer we have to look at things like registration, regulation, recourse for consumers and so on.”

Carol McLoughlin, executive director of the SAFPS, says the company is considering taking the matter on appeal.

Read more news, blogs, tips and Q&As in our Smart Money section. Post questions on the site for independent and researched information

Keep the powerful accountable

Subscribe for R30/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

ANC North West committee speaks out against ‘manipulative’ leadership headed...

From submitting parallel lists to misleading the court, list committee chair Lorna Maloney makes serious claims against the North West ANC’s interim provincial committee

July protests take their toll as economy shrinks by 1.5%

The largest drops in the third quarter were in the agriculture sector, trade and manufacturing.

Mabuyane warns ANC provincial executive against another ‘festival of chairs’...

The ANC chair in the Eastern Cape, Oscar Mabuyane, urges PEC members to accept election outcomes and not devolve into the violence of the “festival of chairs”

Going back to the future of KwaZulu-Natal politics

The past is helpful in understanding the predatory and violent nature of political factionalism in the province. But it doesn’t answer the question of how to fix it.
Advertising

press releases

Loading latest Press Releases…
×