Credit reports by cellphone
The National Credit Act of 2005 gives the consumers the right to access, one 'Free Credit Report' a year, so that consumers can become knowledgeable about their credit information and exercise their right to challenge the information. Consumers' access to their Free Credit Report has just become much easier through Credit4life, which allows consumers to access their free credit reports via their cellphones.
"Credit4life, an initiative between Xpert Decision System (XDS), Blue Label Telecoms and Integrat, allows consumers to get a better understanding of their credit scores, assisting consumers to become not only credit active again but also build a better score," explains XDS MD Vivian Pather.
Members of this system, as they improve their scores, will receive invites for accounts, contracts or credit from the company's partners plus many benefits and rewards. Various company partners, who specialise in debt counselling and credit rehabilitation services, will also assist those individuals who have problems with their credit reports.
XDS, which started this initiative, is reportedly the only 100% black-owned registered credit bureau with full accreditation from the NCR, CPA and CBA. It has significant experience in emerging markets, with credit bureau operations in Ghana and Nigeria and credit bureau projects in Africa, the United Arab Emirates, Australia and Namibia.
Potential market
XDS has found The Credit Bureau Monitor (published by the National Credit Regulator) shows that for the period January 2009 to September 2009, only 124 287 consumers accessed their Free Credit Report. This represents less than 1% of the Credit Active Consumers.
"This solution will provide education and awareness of credit matters, allowing consumers to get credit in a responsible manner," says Norman Parkin, CEO of Integrat, an international wireless application service provider (WASP) aggregator that operates in the value added services sector of the mobile telecommunications industry.
"It will empower consumers and enable them to take charge of their credit information, become more credit conscious and with that become a more responsible borrower of credit. At the same time creating this mobile solution, enables us to reach a much wider audience in a more interactive way," adds Mike Laws, Integrat product manager.
"The company will use a multi channel approach to provide free credit reports, education and awareness of credit matters allowing consumers to get credit in a responsible manner and credit grantors to market to credit healthy consumers more effectively," concludes Pather.
The service allows a consumer to get his or her mandated free report once and then offers an updated report anytime thereafter at R5. The second phase of the product will also see a subscription model, which will provide subscribers with regular updates to their profile as well as a number of other added benefits.
Consumers can go to the website www.credit4life.co.za, credit4life.mobi from their cellphones or send a free SMS to 37996.
