SACRRA
Introduction
SACRRA (South African Credit and Risk Reporting Association) is responsible for the oversight, collation and distribution of consumer credit information and risk management services to Credit Bureaus in South Africa.
About : Founded in 1989, the South African Credit and Risk Reporting Association (SACRRA), is a non-profit, voluntary industry association of qualifying companies who share credit and risk payment performance data about their customers with bureau members.
Consumer data collection and distribution : SACRRA provides Mobiloan with the necessary tools and facilities needed to upload consumer credit information to the data transmission hub for distribution to the credit bureaus on behalf of their clients.
Credit information collection and distribution : SACRRA collects and stores credit information on consumers and distributes the same to registered credit bureaus in South Africa.
Compliance : Mobiloan ensures continued compliance by ensuring that our clients consumer data is promptly uploaded to SACRRA both daily and monthly as required.
Review : Apart from continuous feedback from the various credit bureaus with regards to the integrity of the data uploaded to the data transmission hub, Mobiloan clients can also review their SACRRA submissions by way of the relevant advanced reporting tools within Mobiloan.
Credit Bureau Amendments and Timing
Mobiloan will submit the relevant files to SACRRA daily and monthly as appropriate, however that does not necessarily mean that the credit bureaus will action the updates promptly.
In cases where client records need to updated urgently or an update has not been processed a manual CBA adjustment can be done to correct a consumers profile linked to your business.
The amendment requires registration with the Credit Bureau Association (CBA) on https://www.cba.co.za/ which will in turn submit the manual adjustment to the member bureaus for correction.
Why must I submit my client data to SACRRA?
Regulation 19(13) of the National Credit Act requires that all credit providers submit credit information to the various credit bureaus.
SACRRA facilitates the distribution of this information to the various credit bureaus. If SACRRA did not assist in this process the relevant credit provider would have to submit the data to each bureau separately which would be administratively onerous.
For more information on Regulation 19(13) read the following guideline issued by the National Credit Regulator.
Why are written off loans not reflecting as written off on the credit report?
Writing off a loan in your books because a debtor failed to repay is an administrative action.
Recording a written off (adverse) listing on a consumer credit report requires that the credit provider follows the the requirements of Section 129 and 130 of the National Credit Act.
SECTION 129 OF THE NATIONAL CREDIT ACT
A credit agreement can be enforced in court by a credit provider only once the requirements of sections 129 and 130 have been adhered to.
If a consumer is in default and a credit provider wants to enforce the credit agreement, section 129(1)(a) provides that the default may be drawn to the notice of the consumer in writing by the credit provider.
Section 129(1)(b)(i) provides (subject to section 130(2)) that a notice must be provided to a consumer, in accordance with section 129(1)(a) before a credit provider may commence with any legal proceedings to enforce the credit agreement.
For the written off (adverse) listing to appear on the credit report the credit provider must issue the debtor with the relevant Section 129(1) notice.
Thereafter the debtor must be given 10 business days to respond to the notice.
Only if the debtor fails to settle the loan after notice has bee issued to them, can the loan finally be written off and the adverse listing submitted to the credit bureaus.
Mobiloan will automatically write off a loan 20 days after you have initiated the write-off process, unless the client makes a payment, in which case the process is interrupted.
As an aside, note that you cannot write off a loan if there was a payment within 92 days of the write off date.
How often must I submit my data to SACRRA?
Credit providers are required to send submissions to SACRRA daily, i.e. day to day transactions and movements and monthly i.e. for status updates etc.
Mobiloan customers do not need to perform this task manually as Mobiloan automatically sends through the daily and monthly submission files to SACRRA.
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