The Minister of Trade, Industry and Competition, Mr Mpho Parks Tau, has announced his intention to amend the regulations under the National Credit Act, 2005 (Act No. 34 of 2005). These amendments, detailed in Government Notice No. R. 6510 dated 13 August 2025, aim to refine and enhance the regulatory framework governing credit providers and credit bureaus. The proposed changes focus on several key areas, including the identification of consumers, submission of information, and credit risk management practices.
Identification of consumers
One of the significant amendments involves the identification process for consumers. Regulation 18 will be updated to ensure that consumers or persons, including juristic persons, are identified by their identity number, passport number, or registration number. In cases where these identifiers are unavailable, other reasonable methods will be employed to ensure accurate identification.
Information submission
The amendments also address the submission of consumer credit information to credit bureaus. Regulation 19 will be revised to mandate that the information submitted must include:
- the consumer's initials and surname,
- full names and surname, or registered name or trading name,
- SA identity number,
- passport number, and
- date of birth or registration number.
Additionally, residential address, telephone number, employer details, and place of work must be included where available.
Credit risk management
The proposed changes introduce new requirements for ongoing credit risk management by credit providers. Regulation 18 will be expanded to include provisions for assessing the credit status and financial position of related persons of small businesses, as well as the application for credit or funding by small businesses. Credit providers will be required to take practical steps to assess the consumer's discretionary income, financial means, and prospects, including revenue flow from commercial activities funded by the credit agreement.
Consumer financial obligations
Regulation 23A will be amended to ensure that credit providers validate gross income or financial means and prospects, including revenue flow from commercial activities funded by the credit agreement. Credit providers must calculate the consumer's existing financial means, prospects, and obligations, considering the realisation of assets and future revenue generated by commercial purposes funded by the credit agreement. The minimum expense norms table will be utilised for calculating existing financial obligations, excluding small businesses, which must disclose realistic business expenditure.
Sources of consumer credit information
The amendments to Regulation 18 will allow registered credit bureaus to receive consumer credit information from various sources, including organs of state, courts, judicial officers, suppliers of goods, services, or utilities, insurance providers, entities involved in fraud investigation, educational institutions, and debt collectors.
Conclusion
These amendments to the National Credit Act regulations are designed to enhance the accuracy and comprehensiveness of consumer credit information, improve credit risk management practices, and ensure that credit providers take practical steps to assess and validate consumer financial means and obligations. Interested parties are invited to submit their comments on these proposed changes within 30 days from the date of publication.
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