The requirements of the National Credit Act (NCA) require anyone accessing personal credit bureau data to indicate the purpose for requesting every credit report, which must be one of the NCA Prescribed Purposes.
| Keywords | Full Prescribed Purpose |
| Setting a limit in respect of the supply of goods, services or utilities* | Setting a limit in respect of the supply of goods, services or utilities provided that the consent of the consumer has been obtained prior to the report being requested; includes property rentals/leasing. |
| Affordability assessment by a Credit Provider | In terms of Regulation 23A of the NCA, no Credit Provider may grant credit to a consumer before performing an affordability assessment. This assessment is mandatory prior to the Credit Provider granting credit to the consumer. |
| Financial means assessment* | This is also known as “financial wellness assessment”, which is used by companies assisting consumers to understand their financial status by working through their credit reports with them. These companies request the consumer’s credit report on the consumer’s behalf and instruction, requiring the consumer’s consent. |
| Tracing by Credit Provider or Agent | Tracing can be done for the following reasons:
This is no longer an NCA-approved prescribed purpose for accessing a Consumer Profile. Customers choosing this reason when making a search will be redirected to a choice of Trace searches offered from a selection of Credit Bureaus. NB: Access to tracing/contact information from a Credit Bureau for marketing purposes (for the potential benefit of the contacting party) is not allowed and is deemed illegal. |
| Fraud, Corruption, or Theft Investigation | An investigation into fraud, corruption or theft, provided that the South African Police Service or any other statutory enforcement agency conducts such an investigation. |
| Fraud Detection and Fraud Prevention | Fraud detection and fraud prevention services. |
| Employment Educational Check* | Considering a candidate for employment in a position that requires trust and honesty and entails the handling of cash or finances, provided that the consent of the consumer has been obtained prior to the report being requested. See NCR Circular 04 (June 2019) for additional requirements for these checks. |
| Debt Counselling | For use by registered Debt Counsellors to determine the Credit Bureau status of a consumer. |
| Insurance Application* | Assessing an application for insurance, provided that the consent of the consumer has been obtained prior to the report being requested. |
| Unclaimed Funds Distribution | Obtaining consumer information to distribute unclaimed funds, including pension funds and insurance claims. |
| Pre-screening by Credit Providers* | Allows for Credit Providers to pre-screen their marketing list in order to determine which consumers they can safely market their credit products to. |
| Credit Risk Management | To be used only by credit providers for assessing existing customers. |
| Credit Limit Management | To be used only by credit providers for assessing an existing customer for the purpose of increasing or decreasing a credit limit with consent. |
