Introduction

TransUnion ITC acts as a custodian of credit profiles on consumers and/or businesses. Credit profiles are a history of a consumer or business's repayment behaviour, compiled and stored in order to facilitate the granting of credit.

The decision to grant credit resides with the credit grantor (i.e. the business with whom you have applied for credit) who utilises credit bureaux information in order to assess the risk involved in granting credit to a particular consumer or business.

For example: if somebody asked you for a loan of R100, would you do so without knowing how they would repay you? Probably not. However, if you could establish that the person had borrowed R100 from someone else and had repaid them within the agreed time period, you would feel more comfortable in making the loan.

There are 10 credit bureaux in South Africa, the largest of which are TransUnion ITC and Experian Credit Bureau. All credit bureaux are members of the Association of Risk Information Agencies) and are bound by the ARIA Code of Conduct that has been drawn up and is enforced by the Business Practices Committee of the Department of Trade and Industry.

• From where does TransUnion ITC obtain information?

  TransUnion ITC obtains information from subscribers (i.e. businesses that subscribe to credit bureaux services) as well as from public records. Subscribers provide identification information obtained from credit applications that have been completed by consumers and businesses when applying for credit. Subscribers may also regularly supply information on how consumers and businesses meet their financial obligations. TransUnion ITC, has a database of approximately 16-million credit active consumer credit profiles, 85% of which reveal that consumers meet their credit obligations timeously.

  Information obtained from public records includes civil court judgments for debt, sequestrations, liquidations and administration orders.

• What happens if you do not meet your credit obligations?

  If a consumer does not meet his/her credit obligations, the business with whom they have a credit agreement, may, provided it is a subscriber to TransUnion ITC, informs TransUnion ITC of the fact and a notation will be placed on the consumer's credit profile.

  TransUnion ITC's policy with regard to accepting default notations from subscribers is that the information will only be accepted if the subscriber has warranted in writing that it is accurate, that the account is not in dispute, that the debtor has received prior notice of the notation, and that the amount is as a result of a credit-related transaction.

  In accordance with the ARIA Code of Conduct, a default notation will remain on a consumer's credit profile for three years, after which it will be automatically removed from the respective credit profile, unless informed otherwise by the respective credit grantor.

  In the case of public record information, the ARIA Code of Conduct stipulates that notices in respect of civil court judgments will be stored for five years, unless rescinded through the courts. After the five-year period, the judgment will be automatically removed from the consumer's credit profile.

  TransUnion ITC advises consumers who have default notations on their credit profiles to contact the subscriber involved and make arrangements to pay the outstanding amount. In such instances, the consumer may then request the subscriber to forward a written instruction to us in order to have the notation amended.

  It is important to bear in mind that TransUnion ITC have to abide by the credit policy of the subscriber and it is the subscriber who will instruct them on what action they will take.

  If a debt in respect of a judgment is paid or a judgment is abandoned, a credit bureau will update the information on the consumer's credit profile, but this does not mean that the judgment will be removed. It will remain on the consumer's credit profile for the five-year period.

  If, however, a judgment is rescinded by the courts within the five year period, the ARIA Code of Conduct states that the judgment is to be deleted from the consumer's credit profile. Once TransUnion ITC receives a notification of rescission from the court, the judgment will be deleted.

• How can you gain access to your credit profile?

  In terms of the ARIA Code of Conduct, TransUnion ITC is obliged to give consumers access to their credit profiles.

  TransUnion ITC complies with this through the services of our agents Compu-Pay, who are conveniently located throughout South Africa. To view your credit profile, you need only make an appointment, present positive proof of identification and pay a R30 administration fee. A qualified consultant will show you your respective credit profile and review the contents with you.

  It is important to note that only TransUnion ITC credit profiles can be accessed via Compu-Pay, and not those stored by any other credit bureaux.

  In terms of the ARIA Code of Conduct, consumers have the right to dispute information contained on their credit profiles, and credit bureaux are obliged to investigate. If it arises that incorrect information is recorded on the consumer’s credit profile, not only will the information be corrected by TransUnion ITC, but the fee of R45 will be refunded to the consumer

• TransUnion ITC's advice to consumers

  As part of TransUnion ITC’s commitment to assisting consumers in understanding and proactively managing their credit profiles, we advice consumers to plan and budget their finances carefully. Consumers should bear in mind that should they sign a credit agreement, the agreement will be binding in law and the conditions of the agreement must be adhered to. Consumers should read all credit agreements carefully and ensure that they understand what they are binding themselves to.

  Should consumers experience difficulties in meeting their credit obligations, ignoring statements or letters of demand will not rectify the problem. They should contact the credit grantor immediately and try to come to an agreement to repay the debt.

  It is also important to highlight that your credit profile is an asset and should be proactively managed. A credit profile which reflects that you meet your credit obligations timeously will assist you in gaining access to future credit.

• What is a credit repair business?

  Credit repair businesses advertise that they are able to improve a consumer or business credit profile of any information which indicates that the respective consumer or business have not met their credit obligations e.g. default notations. Credit repair businesses charge a fee upfront on the premise that they have access to the respective credit profiles.

• What should a consumer do?

  If a consumer is exposed to a credit repair business, he/she should report the matter to the Harmful Business Practices Committee. After perusal of the information, the Committee will refer the matter to the South African Police who investigate it further.

• Statistical Data on ITC Database: