Notification

THE CO’s JURISDICTION

The Credit Ombud can only help you to solve your problem if it falls within our jurisdiction. This means that your complaint must fall into at least one or more of the categories mentioned below.

The Credit Ombud has the sole discretion to determine whether a complaint falls within or outside our jurisdiction, and we will inform you accordingly once a complaint is submitted.

Eligible complainants

The CO may consider a dispute brought by:

• a private individual; or
• a company, including a sole proprietor or trader, a juristic person, partnership or trust
• a person entitled to complain to the CO under the provisions of FSOS or the NCA.
• an individual or company who has tried unsuccessfully to resolve the dispute through approaches to the credit bureaux or credit providers or Organisations dealing with credit receivers in terms of credit related matters, or the complaint has been repudiated, or there has been an undue delay (longer than 20 working days) in resolving the complaint.

Having due regard to the requirements of the National Credit Act and relevant Codes of Conduct  - The CO shall only consider complaints that pertain to non-bank credit transactions:

(a)  Where the member breached any relevant laws or regulations or by-law or duties imposed by law – or did not give effect to a right provided by law or any regulations or by-law to the complainant in relation to the subject matter of the complaint,

(b)  Breached an applicable code of practice or code of conduct provided for by relevant legislation, regulations or by-laws.

(c)   Not met standards of good practice

(d)  Acted unfairly and/or unconscionable towards a complainant.

Limits of the Ombudsman’s Jurisdiction

• Cash transactions
  
• If the complaints is about someone who is not a member or a member by association of the CO
  
• If the subject matter of the claim is more than R1 million for compensation
  
• If the complaint relates to a members commercial judgment about lending or security
  
• If the complaint relates to any transaction entered into outside South Africa
  
• In the Case of a secured loan, where the security is situated or legally registered outside South Africa or is governed by laws other than the laws in South Africa
• If the complainant is not the person to whom the services were directly provided to my the member
  
• If the member’s act or omission occurred more than three years before the receipt of the complaint by the CO, except for Credit Information disputes.
  
• If the complainant has lodged a previous complaint regarding similar issues about a member which has been considered by the CO, unless relevant new evidence is available
• If the complaint is already the subject of proceedings before a court, tribunal, arbitrator, other Ombudsman or other dispute resolutions Scheme, or is under investigation by any Ombudsman
• The complaint is, was or becomes subject to proceedings before a court, tribunal, arbitrator or other ombudsman or dispute resolution scheme
• The compliant has already been determined by court, tribunal, arbitrator or ombudsman or other dispute resolution scheme
• If the complaint is frivolous or vexatious or is being pursued in a frivolous or vexatious manner or for an improper purpose
  
  

The following jurisdiction relates specifically to credit information and  the CO shall only consider complaints that pertain to:


(a)  Inaccurate or incorrect credit information;

(b)   Insufficient or incomplete credit information;

(c)  Out-dated credit information;     

The best predictor of future behavior is past behavior, credit bureaux provide detailed information on a borrower’s past credit performance, but in order to give borrowers an incentive to work on repairing their credit it is necessary to put a limit on the time that data may be kept.  Credit bureaux must ensure, taking into account cyclical economic trends, that sufficient time elapses before deleting essential risk related data.  This obligation must be balanced against the interests of persons who should not be prejudiced by obsolete data.  Data must be factual and reported in full.  The consumer Credit information as per the following Table may be displayed and used for purposes of credit scoring or credit assessment for a maximum period from the date of the event, as indicated: 

Category of Consumer Credit Information	Description	Maximum Period
Details and results of disputes lodged by consumers	Number and nature of complaints lodged and whether complaint was rejected. No information may be displayed on complaints that were upheld	18 Months
Enquiries	Number of enquires made on a consumer’s record, including the name of the entity/person who made the enquiry and a contact person if available	2 Years
Payment Profile	Factual information pertaining to the payment profile of the consumer	5 Years
Adverse classification of consumer behaviour	Subjective classifications of consumer behaviour	1 Year
Adverse classification of consumer behaviour;	Classifications related to enforcement actions taken by the credit provider	2 Years
Debt Restructuring	As per section 86 of the Act an order given by the Court or Tribunal	Until a clearance certificate is issued
Civil Court Judgements	Civil Court Judgements including default judgement	The earlier of 5 years or until the judgment is rescinded by a court or abandoned by the credit provider in terms of section 86 of the Magistrates Court Act, 32 of 1944
Administration Orders	As per the Court Record	The earlier of 10 years or until rehabilitation order is granted
Administration Orders	As per the Court Record	The earlier of 10 years or until rehabilitation order is granted
Liquidations	As per the court record	Unlimited period
Rehabilitation Order	As per the court record	5 Years
Sequestrations	As per the court record	The earlier of 10 years or until rehabilitation order is granted
Other information	Any other information not included in any category above	2 Years

 

• The date of the event is the date on which the relevant order was given or the date on which the event occurred which is being displayed in the consumer credit record
• Adverse classifications of consumer behaviour are subjective classifications of consumer behaviour and include classifications such as ‘delinquent’, ‘default’, ‘slow paying’, ‘absconded’, or ‘not contactable’.
• Adverse classifications of enforcement action are classifications related to enforcement action taken by the credit provider, including classifications such as ‘handed over for collection or recovery’, ‘legal action’, or ‘write-off;
• Payment profile refers to the consumer’s payment history in respect of a particular transaction.  
  
  (d)   The obligation of the Subscriber to the credit bureaux to supply accurate credit information to the bureau;
  
  Subscribers of credit bureaux shall take reasonable steps to ensure that the data supplied to credit bureaux is correct, accurate, up-to-date, relevant, complete and valid.  Subscribers will supply the information to the credit bureaux within a reasonable time period.  
  
  (e)   The obligation of the Subscriber to the credit bureaux to properly inform credit receivers prior to adversely listing them;
  
  Subscribers of credit bureaux shall give their customers twenty (20) working days notice of their intention to submit the following adverse information concerning that person to a credit bureau:
  
  a)     Classification of behaviour, including classifications such as delinquent, default, slow payer, absconded and not contactable;
  
  b)     Classifications related to enforcement such as handed over for collection or recovery, legal action or write-off
  
  
  
  (f)   Cases where a credit receiver defaults through no fault of his/her own and subsequently rehabilitates himself/herself.  
  
  The CO may apply the following test to ensure that the consumer qualifies for early removal of information.
  
                
  
  Test
  1.     Was there intentional conduct on the part of the complainant that caused the default listing?
  
  2.     Was there any negligent conduct on the part of the complainant that caused the default listings?
   
   - Prior to the default listing in question did the complainant’s payment behaviour shows an intention to honour his/her debts?
  - Did the complainant take the necessary steps to avoid the default listings?
   
  3.     Has the complainant since the default, made bona fide attempts to    rehabilitate himself?
  
   
  (g)  Listings in respect of prescribed debt.
  
  Subscribers of credit bureaux shall not submit information to credit bureaux in respect of debts that have prescribed. Prescription of debt in terms of this code is defined as follows:  In the event that a debtor has not acknowledged a debt for a period longer than 36 months, the said debt would have prescribed and a subscriber of credit bureaux will not be allowed to list the information on the credit bureaux.
  
  
  (h)  Duplicate/double listings in respect of the same debt
  
  Subscribers of credit bureaux shall not submit information more than once in respect of the same debt.
  
  
  (i)    Identity Fraud, where a consumer is the victim of fraud
  
  
  (j)    Cases where a consumer has not paid the subscriber to the Credit Bureaux as a result of a service dispute and was subsequently listed on the credit bureaux.
  
  
  
  Limits of the Ombudsman’s Jurisdiction
  
  Complaints not covered by the Credit Ombudsman in terms of credit Information
  
  The CO may not consider a complaint or dispute that:
  
  
  
  • If the complaints is about someone who is not a member or a member by association of the CO
    
    
  • If the complaint relates to any credit information outside South Africa
    
    
  • If the complainant is not the person to whom the services were directly provided to my the member
    
    
  • If the complainant has lodged a previous complaint regarding similar issues about a member which has been considered by the CO, unless relevant new evidence is available
    
    
  • If the complaint is already the subject of proceedings before a court, tribunal, arbitrator, other Ombudsman or other dispute resolutions Scheme, or is under investigation by any Ombudsman
    
    
  • The complaint is, was or becomes subject to proceedings before a court, tribunal, arbitrator or other ombudsman or dispute resolution scheme
    
    
  • The compliant has already been determined by court, tribunal, arbitrator or ombudsman or other dispute resolution scheme
    
    
  • If the complaint is frivolous or vexatious or is being pursued in a frivolous or vexatious manner or for an improper purpose
    
    
  
  Unreasonable complainants
  
  The Ombud may, at the Ombud’s sole discretion, determine that a dispute should not be considered on the grounds that the complainant is pursuing it:
  
• in an unreasonable manner; or
• in a frivolous, vexatious, offensive, threatening or abusive manner.
  

Termination by complainant

A complainant may, at any time prior to the issuing of a ruling, terminate the CO’s handling of the complaint and resort to litigation or other dispute resolution process by withdrawing the complaint in writing.

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