National Credit Regulator v Southern African Fraud Prevention Services (NCT/23181/2015/140(1)NCA) [2016] ZANCT 32 (29 July 2016)

National Credit Regulator v Southern African Fraud Prevention Services (NCT/23181/2015/140(1)NCA) [2016] ZANCT 32 (29 July 2016)

The Tribunal found that the Respondent, as a registered credit bureau, is subject to the National Credit Act and its regulations, including the prescribed retention periods for consumer credit information. The Respondent's retention of fraud listings for ten years contravenes section 70(2)(f) read with Regulation 17(1), which limits retention to one year for adverse classifications or two years for 'other information.' The Tribunal rejected the Respondent's argument that fraud information is exempt from these requirements, holding that the law does not provide such an exception. The Tribunal declared the Respondent's conduct prohibited and in breach of its registration conditions....

Citation
[2016] ZANCT 32
Parties
Applicant: National Credit Regulator; Respondent: Southern African Fraud Prevention Services NPC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
29 July 2016
Case Number
NCT/23181/2015/140(1)NCA
Procedural Posture
Civil Application / Final Determination After Settlement and Contested Hearing
Outcome
The Tribunal declared the Respondent's conduct prohibited, found breaches of the Act and registration conditions, ordered expungement of unlawfully retained information, and declined to impose an administrative penalty.
Judges
F Manamela, J Maseko, P Beck
Legal Topics
Credit Bureau Registration, Retention Periods for Consumer Credit Information, Prohibited Conduct, Administrative Penalty, Settlement Agreement, Conditions of Registration
Banking and Finance Civil Procedure Credit Bureau Registration Retention Periods for Consumer Credit Information Prohibited Conduct Administrative Penalty Settlement Agreement Conditions of Registration

Case Brief

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Parties

National Credit Regulator

Applicant

Southern African Fraud Prevention Services NPC

Respondent

Procedural Posture

Civil Application / Final Determination After Settlement and Contested Hearing

Legal Issues

  1. 1 Whether the Respondent contravened section 70(2)(f) read with Regulation 17(1) of the National Credit Act by retaining consumer fraud listings for ten years.
  2. 2 Whether the Respondent's conduct constitutes prohibited conduct under the Act.
  3. 3 Whether the contraventions warrant the imposition of an administrative penalty.

Ratio Decidendi

The Tribunal found that the Respondent, as a registered credit bureau, is subject to the National Credit Act and its regulations, including the prescribed retention periods for consumer credit information. The Respondent's retention of fraud listings for ten years contravenes section 70(2)(f) read with Regulation 17(1), which limits retention to one year for adverse classifications or two years for 'other information.' The Tribunal rejected the Respondent's argument that fraud information is exempt from these requirements, holding that the law does not provide such an exception. The Tribunal declared the Respondent's conduct prohibited and in breach of its registration conditions....

Court Disposition

The Tribunal declared the Respondent's conduct prohibited, found breaches of the Act and registration conditions, ordered expungement of unlawfully retained information, and declined to impose an administrative penalty.

Orders

  • The Respondent's contravention of the Act and Regulations is declared prohibited conduct.
  • The Respondent is found to be in breach of the conditions of its registration.