A Fin24 user wants to know if creditors need consumer consent before accessing the consumer's credit bureau information. She writes:
Does the law require a credit provider, when one applies for credit, to obtain the consumer's consent before the credit provider accesses the consumer's credit bureau information?
Renée Marais NCRDC1780 Independent Debt Counsellor answers:
This is a good question. In terms of the PoPI Act a consumer needs to give consent for any person to request your credit report.
A credit provider is required to also obtain written consent from you before getting your credit report. It is however a requirement of the National Credit Act that creditors must obtain your credit report before granting you credit.
Credit providers are required by the Act to ensure that you are in a position to pay back the debt and the information on your credit report is part of the information needed to enable them to make that determination.
The credit report shows them if you are able to pay your debt in a timely manner and if you can indeed afford the credit. If a credit provider gives you credit when you cannot afford it without having your permission to obtain the credit report, it may be reckless or unlawful credit.
If the credit provider gives you credit which makes you over indebted because the money you already pay towards debt is too much, that may also be reckless.
The ITC report is very important and usually most creditors will have you sign a permission form when you apply for credit.
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