NCR serves credit bureau with compliance notice
The National Credit Regulator (NCR) has served TransUnion Credit Bureau - one of the biggest such organisations - with a compliance notice following the latter's failure to comply with regulations relating to data cleansing in terms of the National Credit Act.
Gabriel Davel, CEO of the NCR, says Credit Bureaus were required to submit an audit report to the National Credit Regulator by 31 August 2007. The purpose of these reports was to assess;
(a) Whether the information that had to be removed in terms of the regulations was in fact removed;
(b) To evaluate the accuracy of consumer information held by credit bureaus; and
(c) To assess the adequacy of the procedures followed by bureaus to ensure that consumer information is accurate.
The TransUnion audit report did not meet the requirements for an audit report as required in terms of the regulations. These weaknesses had been pointed out previously.
In terms of Regulation 3, TransUnion was required to inform all registered credit bureaus of the paid up judgments that were removed from its records. TransUnion was also required to remove similar information from its records upon receiving such advice from other registered credit bureaus. "It does not appear as if these requirements were met," says Davel.
In order to address areas of non-compliance, TransUnion is required to take the steps as set out in the Compliance Notice. These include the following:
* Written confirmation that all information that had to be removed in terms of the Act has in fact been removed;
* Written confirmation that all other credit bureaus have been notified of judgements of up to R50 000 that have been removed by TransUnion from consumers' credit records;
* TransUnion to submit an audit report to the NCR that meets requirements of the Act and the directives of the NCR.
TransUnion may appeal to the National Consumer Tribunal within 15 business days.
