National Credit Regulator v Southern African Fraud Prevention Services NPC

The National Credit Regulator (NCR) lodged a complaint against Southern African Fraud Prevention Services NPC (SAFPS), a registered credit bureau, alleging contraventions of the National Credit Act 34 of 2005 (NCA). SAFPS operates a fraud database (the Shamwari database) containing information supplied by its members about confirmed or suspected fraud, which it retains for up to ten years. The NCR contended that this fraud information constituted 'consumer credit information' under s 70(1) of the NCA and, as an adverse classification of consumer behaviour under regulation 17, had to be expunged after one year. The National Consumer Tribunal upheld the NCR’s contention but declined to impose an administrative fine. SAFPS successfully appealed to the Gauteng Division of the High Court. The NCR then appealed to the Supreme Court of Appeal with special leave.

The appeal was dismissed. The orders of the High Court setting aside the Tribunal’s decision were upheld. No order as to costs was made in the Supreme Court of Appeal, and the costs orders made against the NCR in the High Court appeal and cross-appeal were set aside.

The case clarifies the distinction under the National Credit Act between consumer credit information and other information, particularly fraud-related data held by credit bureaux. It confirms that fraud information does not amount to an adverse classification of consumer behaviour requiring expungement after one year. The judgment provides important guidance on statutory interpretation of the NCA and its regulations and affirms the ability of credit bureaux to retain fraud prevention information beyond the standard retention periods applicable to adverse consumer credit listings.