Non-compliant data providers let down consumers

Consumers can blame non-compliant credit and data providers for unfairly denying credit access for qualifying consumers because they do not submit data about consumer credit in time and in the right format.

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According to the latest Fin-Scope Consumer Survey, an estimated 98% of South African adults have access to formal financial services.

Magauta Mphahlele, executive director of SA Credit and Risk Reporting Association (Sacrra), says the sharing of consumer credit and risk data contributes to greater financial inclusion by increasing access to finance for individuals because it provides credit information to facilitate faster and better credit and risk assessments.

“We still have some entities that do not comply in terms of submitting and updating data and this leads to inaccurate and outdated consumer payment profiles, which denies access to credit and other financial services for qualifying consumers,” she says.