- Experian broke section 72(3) of the National Credit Act by failing to obtain credible, supporting evidence before listing a disputed debt on a consumer’s profile, undermining the accuracy of credit reporting.
- The Tribunal ordered Experian to remove all records and negative listings related to the Nimble account from Clifford’s credit profile within seven days, restoring his profile to its prior state.
- The Tribunal declared Experian’s conduct prohibited in terms of the National Credit Act, setting a precedent for how disputed debts must be verified before being reported.
The National Consumer Tribunal (NCT) has found Experian South Africa (Pty) Ltd in breach of the National Credit Act after failing to verify a disputed debt before listing it on Mukwevho Rofhiwa Clifford’s credit profile.
The dispute concerned an MTN account that was later ceded to Nimble Group (Pty) Ltd. Clifford maintained that he had no valid contract or outstanding debt with MTN at the time of cession and that the debt had prescribed.
Mukwevho first approached the National Credit Regulator (NCR), which closed the matter after Experian updated his credit profile to show the account as settled, based on a paid-up letter from Nimble. He then referred the matter to the Tribunal, seeking a declaration of prohibited conduct against Experian.
He alleged that Experian had broken sections 70(2)(c) and 72(3) of the National Credit Act by failing to provide credible evidence of the debt. “The cession letter alone does not count as credible evidence of the original debt,” the Tribunal held.
Mukwevho stated, “Experian failed to take reasonable steps to obtain the necessary documents from MTN or Nimble before listing the debt. I never had a valid debt with MTN that could be ceded to Nimble, yet my credit profile was negatively affected.”
Tribunal’s findings
Tribunal member Dr MC Peenze, along with Advocate C Sassman and P Manzi-Ntshingila, noted that Experian relied solely on a cession letter, which did not confirm the original debt or the amount before cession. The Tribunal found that Experian had not obtained the original credit agreement or the final statement of account from MTN or Nimble.
“The failure to obtain the original credit agreement or final statement of account meant Experian could not verify the listing,” Peenze said. “This omission is a clear breach of section 72(3).”
The Tribunal ordered Experian to remove all information relating to the Nimble account (A5886014) from Clifford’s credit profile within seven days. No order was made regarding costs.
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