Default Retention Periods for Adverse Listings
TPN no longer accepts requests to delete TPN or TransUnion defaults unless the default details are factually inaccurate.
TPN is a credit bureau registered in terms of the National Credit Act No.34 of 2005 (NCA), which engages in the business of a credit bureau. One of the primary objectives of the NCA is to regulate the businesses of credit bureaus. One of the ways in which the NCA achieves this objective is by prescribing what information a credit bureau may receive, compile and report; and by prescribing the retention period for the different categories of information.
The Credit Bureau Association (CBA), of which TPN is a member, issued a policy directive which is now in force:
“It was resolved by the legal and compliance committee of the CBA that adverse consumer credit information supplied by non Credit Provider Association members shall be displayed for the maximum period from the date of event, as prescribed for the said categories of consumer credit information, in terms of regulation 17 of the General Regulations Issued in terms of the National Credit Act No.34 of 2005 (NCA); effective from 1 June 2011.”
Retention Periods for Credit Bureau Information
National Credit Act - Regulation 17 (1)
Categories of Consumer Credit Information | Description | Maximum period |
Adverse classification of consumer behaviour | Subjective classifications of consumer behaviour [Examples: "Late payer" ; "absconded" ; "damage to property"] | 1 year |
Adverse classification of enforcement action | Classification related to enforcement action taken by the credit provider [Examples: “handed over”, “bad debt written off”, evicted”] | 1 year |
National Credit Act - Section 70(2)(d)
A registered credit bureau must-
…
(d) retain any consumer credit information reported to it for the prescribed period, irrespective of whether that information reflects positively or negatively on the consumer;
Conclusion
TPN members are able to load Adverse Listings (defaults) against their customer’s credit profiles on both the TPN and TransUnion databases. Prior to loading these default listings the TPN member is legally required to give the consumer 20 business days’ notice of intention to list.
Should the consumer settle the debt prior to the 1 or 2 year retention period; the TPN member must update the consumer’s default record to “Account settled in full”.
TPN and TransUnion will no longer accept a request to delete defaults unless the default details are inaccurate.
If you would like more information, please read our article https://mrisoftware.tpn.co.za/blog/a-guide-to-adverse-listings/