National Credit Regulator v Southern African Fraud Prevention Services NPC (560/2018) [2019] ZASCA 92; [2019] 3 All SA 378 (SCA); 2019 (5) SA 103 (SCA) (3 June 2019)

National Credit Regulator v Southern African Fraud Prevention Services NPC (560/2018) [2019] ZASCA 92; [2019] 3 All SA 378 (SCA); 2019 (5) SA 103 (SCA) (3 June 2019)

The Supreme Court of Appeal held that the fraud information retained by SAFPS does not constitute an 'adverse classification of consumer behaviour' as defined in section 71A(4)(a) of the National Credit Act and regulation 17. The prescribed one-year expungement period applies only to subjective classifications of consumer behaviour, such as 'delinquent' or 'default', and not to objective fraud information. The NCA and its regulations expressly allow credit bureaus to retain information relevant for fraud detection and prevention, which is not subject to the expungement requirements. The Tribunal's finding that all information kept by a credit bureau is subject to expungement was incorrect...

Citation
[2019] ZASCA 92
Parties
Appellant: National Credit Regulator; Respondent: Southern African Fraud Prevention Services NPC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
3 June 2019
Case Number
560/2018
Procedural Posture
Civil Appeal / Appeal From Gauteng Division of High Court, Pretoria
Outcome
Appeal dismissed; no order as to costs. High court costs orders against the National Credit Regulator set aside.
Judges
Wallis, Saldulker, Zondi, Schippers, Eksteen
Legal Topics
Credit Bureau Regulation, National Credit Act, Retention of Consumer Information, Adverse Classification, Statutory Interpretation
Commercial and Corporate Civil Procedure Credit Bureau Regulation National Credit Act Retention of Consumer Information Adverse Classification Statutory Interpretation

Case Brief

Summary, issues, holding and outcome

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Parties

National Credit Regulator

Appellant

Southern African Fraud Prevention Services NPC

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division of High Court, Pretoria

Legal Issues

  1. 1 Whether fraud information held by SAFPS constitutes consumer credit information under section 70(1) of the National Credit Act.
  2. 2 Whether SAFPS is obliged to expunge fraud information within one year under regulation 17 of the NCA regulations.
  3. 3 Whether the retention of fraud information for ten years by SAFPS contravenes the NCA and its regulations.

Ratio Decidendi

The Supreme Court of Appeal held that the fraud information retained by SAFPS does not constitute an 'adverse classification of consumer behaviour' as defined in section 71A(4)(a) of the National Credit Act and regulation 17. The prescribed one-year expungement period applies only to subjective classifications of consumer behaviour, such as 'delinquent' or 'default', and not to objective fraud information. The NCA and its regulations expressly allow credit bureaus to retain information relevant for fraud detection and prevention, which is not subject to the expungement requirements. The Tribunal's finding that all information kept by a credit bureau is subject to expungement was incorrect...

Court Disposition

Appeal dismissed; no order as to costs. High court costs orders against the National Credit Regulator set aside.

Orders

  • The appeal is dismissed with no order for costs.
  • The orders of the high court granting costs against the National Credit Regulator in the appeal and the cross-appeal to that court are set aside.