The Act requires registration of all credit bureaux. This excludes credit providers or employees of credit providers. An entity qualifies to register as a credit bureaux if it is engaged in the business of receiving reports or investigating credit applications, credit agreements, payment history or patterns, or consumer credit information relating to consumers or prospective consumers. These entities must also be in the business of compiling and issuing reports concerning consumers.
Requirements for registering as a credit bureau as per Section 43, and regulation 4 of the National Credit Amendment Act, 19 of 2014:
- The National Credit Regulator will not register a person as a credit bureau unless that person -
- Maintains and imposes appropriate qualifications, competence, knowledge and experience requirements for its employees or contractor who will have the authority to represent it in any function under the Act;
- Has sufficient human, financial and operational resources to enable it to function efficiently and to carry out effectively its functions in terms of the act or presents a credible plan to acquire or develop such resources;
- Has adopted procedures to ensure that questions, concerns and complaints of consumers or credit providers are treated equitably and consistently in a timely, efficient and courteous manner, or presents to the NCR a credible plan to acquire or develop those procedures and,
- Is registered with the South African Revenue Services.
- In addition to the requirements of section 46, a person may not be registered as a credit bureau if any person who has a controlling interest in the applicant is –
- a credit provider;
- a debt collection agency; or
- a person who conducts any disqualified business prescribed in terms of subsection (5)
- A natural person may not be registered as a credit bureau.
Documents and information required for the application for Registration as a Reseller Credit Bureau in terms of Section 43 of the National Credit Amendment Act, 19 of 2014:
- Completed and signed application form (Form 5).
- Business plan including details of the organization’s business model, and projected income for the first year of operation as a reseller credit bureau.
- Companies and Intellectual Property Commission (CIPC) registration document or other legal registration document.
- Copy of the organization’s share certificate.
- Certified copies of ID/Passports of all members/directors or trustees/shareholders.
- Resolution of applicant.
- A Criminal Clearance Certificate for all the members/directors or trustees issued by the South African Police Services (SAPS) or other service providers listed in the annexure attached hereto marked A. The clearance certificate must not be older than six (6) months. (Please create a link).
- Proof of payment of the registration fees:
- Non-refundable application fee of R550;
- Branch fee of R250 per location or premises at or from which the applicant conducts registered activities;
- Initial registration fee as indicated in the table below.
Reseller Credit Bureaux
- A letter from the bank confirming the applicant’s banking details or a copy of a cancelled blank cheque or a stamped copy of the bank statement.
- Proof of registration with the South African Revenue Services (SARS).
- High level Organogram of the Organisation, including CEO and the 1st level of senior Management;
- Information of the CEO and 1st level of senior Management:
- Name of employee;
- Position in organization;
- Experience (number of months, years in current role and similar role).
- Shareholding information of the organization (company structure). Copies of the legal registration documents and nature of business for each entity within the group (if applicable).
- List of key contractors/outsourced service providers of the organization and the services that they provide;
- Copies of the service level agreement (SLA) with the key contractors/outsourced service providers.
- Copies of the HR policies and procedures
- code of conduct and disciplinary code;
- performance management.
- Copy of the latest audited financial statements, and if not available, copy of the latest management accounts
- Information on current litigation against the organization, if any.
- Policies and procedures for handling questions, concerns and complaints of consumers or credit providers.
- Policies and procedures in place for ensuring that all clients access the records of the credit bureau for a prescribed purpose (regulations 18(4) and 23 (A)).
- IT and Data Requirements:
- Business continuity management plan;
- Disaster recovery plan;
- Information security policy;
- Process map indicating the flow of information;
- Detailed overview of the IT infrastructure, systems and IT resources;
- An overview of the company’s strategy and processes around data, including data sources, loading and storage of data, processes with data suppliers and data sources.
- A detailed overview of the company’s client base.
- Undertaking by Directors and Officers of Reseller Credit Bureau see Annexure B
- IT Auditors’ Review. The applicant must appoint an independent auditor to conduct a due diligence review and report to the NCR on whether or not the applicant meets the above summarized minimum criteria. See attached terms of reference for performing the due diligence review)