South Africa's National Credit Regulator (NCR) published a guideline clarifying how credit providers must meet consumers’ statutory right to receive reasons for being refused credit, including cases where a provider offers or maintains a lower credit limit than requested. The guideline is effective immediately. The guidance restates that, on a consumer’s request, a credit provider must give the dominant reason in writing for refusing to enter into a credit agreement, offering or reducing a credit limit, refusing a credit-limit increase, or refusing to renew an expiring credit card or similar renewable facility. Where the decision is based on an adverse credit report from a credit bureau, the provider must also provide the credit bureau’s contact particulars. The guideline emphasises that refusal grounds must be permissible under the National Credit Act, including affordability outcomes or reasonable commercial grounds consistent with customary risk management and underwriting practices, and that such practices must not unfairly discriminate; it also notes that the Tribunal may limit the obligation where requests are frivolous or vexatious.
National Credit Regulator 2025-03-31
South Africa's National Credit Regulator issues guidance on giving consumers written reasons when credit is refused
South Africa's National Credit Regulator issued a guideline clarifying credit providers' obligations to inform consumers of reasons for credit refusal or lower limits, effective immediately. Providers must give written reasons, including credit bureau contact details if based on adverse reports, ensuring compliance with the National Credit Act and non-discriminatory practices. The guideline allows the Tribunal to limit obligations for frivolous or vexatious requests.