In terms of the National Credit Act, enquiries may be performed on consumers for the prescribed purposes or for additional purposes as listed in the NCA Regulations or with the consent of the consumer.
In short if an enquiry is performed on a prospective tenant or for employment purposes, consent of the individual is required. Please click here to read TPN's recommended consent clause for tenants and recommended consent clause for employment)
NCA
Regulation 18
(4) The prescribed purposes, other than for purposes contemplated in the Act, for which a report may be issued in terms of section 70 (2) (g), are;
(a) an investigation into fraud, corruption or theft, provided that the South African Police Services or any other statutory enforcement agency conducts such an investigation;
(b) fraud detection and fraud prevention services
(c) considering a candidate for employment in a position that requires trust and honesty and entails the handling of cash or finance;
(d) an assessment of the debtors book of a business for the purpose of:
(i) the sale of the business
(ii) determining the value of the business
(e) setting the limit in respect of the supply of goods, services or utilities;
(f) assessing an application for insurance;
(g) verifying educational qualifications and employment;
(h) obtaining consumer information to distribute unclaimed funds and insurance claims;
(i) tracing a consumer by a credit provider in respect of a credit agreement entered into between the consumer and credit provider
(j) developing a credit scoring system by a credit provider or credit bureau.
(5) Should a report be required for a purpose as set out in subsection (4) (c) or € to (g), the consent of the consumer must be obtained prior to the report being requested.