(Decoding Section 72(1) of the National Credit Act)**

I. Introduction

Imagine being denied a loan because of an error on a document you’ve never even seen.

This scenario is far more common than most people realise. Across South Africa, millions of financial decisions are made every day — and behind almost all of them is a single source of truth: your credit information. Every bank, retailer, lender, insurance company, and even some employers rely heavily on the data collected and stored by credit bureau. This data determines whether you qualify for credit, what interest rate you are offered, and in some cases, whether you are seen as low-risk or high-risk.

In other words: the information held by credit bureau has more influence over your financial life than almost any other document.

But what if that information is wrong? What if someone else’s debt is linked to your profile? What if a paid-up account still shows as outstanding? What if a fraudulent loan appears because of identity theft? And what if a creditor intends to list you for non-payment — but you were never informed?

This is exactly why Section 72(1) of the National Credit Act (NCA) exists.

Section 72(1) guarantees your fundamental right to:

  • Access your credit information

  • Challenge information that is inaccurate, outdated, incomplete, or fraudulent

  • Correct errors that could harm your financial reputation

These rights exist to protect you and ensure fairness, accuracy, and transparency within the credit system.

As a provider of Credit Reports, a Credit Bureau is legally required to honour these rights — promptly, transparently, and at no cost to you. Their role is not only to store credit information, but also to help consumers understand it, use it responsibly, and dispute anything that is incorrect.

This article will unpack Section 72(1) in detail, explain the three pillars of your rights, provide a step-by-step guide to the dispute process, and empower you to take control of the financial narrative written about you.

II. The Three Pillars of Section 72(1)

Section 72(1) of the NCA is built on three powerful pillars — each representing a legal protection for consumers.

Pillar 1: The Right to Access (Section 72(1)(b))

The first pillar is your right to see exactly what information is being held about you.

Your Free Report

Every South African is entitled to one free credit report every year from each registered credit bureau. This is not a favour — it is a legal obligation enforced by the National Credit Act.

At MoneyShop.co.za, you can request this report easily through our online portal. Also you can access it as many times per year as you like – for free!

The process is quick and secure, and you receive a full breakdown of your personal credit profile.

Educational Action: What Is a Credit Score?

Your credit report contains raw data, but your credit score turns that data into a single number that predicts your risk level as a borrower. It is calculated from:

  • Payment behaviour

  • Credit usage

  • Account types

  • Enquiries

  • Negative listings

A higher score = better financial opportunities.
A lower score = higher risk, higher interest rates, or declined applications.

Your credit score exists because of the information found in your report — which is why access is so important.

Pillar 2: The Right to Challenge (Section 72(1)(c))

This is the most powerful pillar within Section 72(1).

You have the legal right to challenge any information on your credit report that you believe is:

  • Incorrect

  • Outdated

  • Incomplete

  • Fraudulent

  • Misleading

And critically:

The credit bureau must investigate your challenge at no cost to you.

You do not need to pay anyone or sign up for paid services to dispute information. It is your right — free of charge.

Educational Action: Common Errors to Look For

Consumers often find:

  • Incorrect ID numbers

  • Accounts that don’t belong to them

  • Fraudulent listings from identity theft

  • Paid-up debts still showing as outstanding

  • Incorrect installment amounts

  • Wrong opening or closing dates

  • Duplicate entries

  • Judgments that have been rescinded but still appear

  • Wrong employer details

  • Addresses that don’t belong to them

Any of these errors can severely damage your credit score — which is why challenging them is essential.

**Pillar 3: The Right to Prior Notice of Adverse Information

(Section 72(1)(a) & Regulation 20)**

The third pillar protects you from being blindsided.

Before a credit provider can list adverse information on your profile — such as:

  • “Handed over for collection”

  • Default

  • Past-due account

  • Judgment information

They must give you at least 20 business days’ written notice.

This notice gives you:

  • Time to settle the debt

  • Time to query the matter

  • Time to avoid an adverse listing

Without this notice, the creditor is in breach of the NCA and the listing may be unlawful.

Educational Action: Why This Matters

An adverse listing can stay on your profile for years and instantly harm your ability to borrow. The 20-day notice is your final opportunity to prevent damage to your financial reputation.

III. The Dispute Resolution Process: A Step-by-Step Guide

The dispute process is straightforward but must be followed carefully to protect your rights and ensure a successful resolution. This section provides a detailed, practical breakdown.

Step 1: Identify the Error

Start by downloading your free annual credit report. Review it line by line, checking:

  • Your personal details

  • All accounts listed

  • Payment history

  • Enquiries

  • Adverse information

  • Judgments

  • Collections

  • Account statuses

Mark anything that looks suspicious or incorrect.

You are the only person who knows your finances intimately — so errors that seem small to a bureau might be obvious to you.

Step 2: Log the Dispute with the Bureau

To initiate a dispute, you must contact the bureau holding the incorrect data.

Typically disputes can be lodged via:

  • An online dispute form

  • A dedicated dispute email address

  • Customer care phone support

Required Documentation

To protect your data and speed up the process, you may be asked for:

  • A certified copy of your ID

  • Proof of address (recent)

  • Supporting documents confirming your claim, such as:

    • Proof of payment

    • Paid-up letters

    • Bank statements

    • Settlement letters

    • Case numbers for judgments

    • Police affidavit in cases of identity theft

Submitting all relevant documents upfront helps resolve the dispute faster.

Step 3: The Investigation (Regulation 20)

Once your dispute is logged, several legal obligations come into effect:

1. The Disputed Entry Is Immediately Flagged

The bureau must flag the disputed information so that third parties are warned that it may not be accurate. This prevents harm while the investigation is underway.

2. The Bureau Contacts the Data Supplier

The bureau must reach out to the creditor or organisation that supplied the information. They must verify:

  • Whether the information is correct

  • Whether the debt exists

  • Whether payments were made

  • Whether the listing is lawful

  • Whether documents support the entry

The bureau cannot simply ignore a dispute — it must investigate it thoroughly.

3. The Timeframe: 20 Business Days

The investigation must be completed within 20 business days.

If the creditor does not respond within this timeframe, the bureau must:

  • Remove the information

  • Or correct it in favour of the consumer

This prevents consumers from being penalised due to delays on the creditor’s side.

Step 4: Resolution and Correction

After the investigation, one of two outcomes occurs:

1. Your Dispute Is Upheld

The bureau will:

  • Correct the data

  • Update the account status

  • Delete inaccurate listings

  • Remove fraudulent accounts

  • Adjust payment histories

  • Fix personal information

Then — and this is crucial:

The bureau must notify all other registered credit bureau of the correction.

This ensures consistency across the entire credit system.

2. Your Dispute Is Not Upheld

If the bureau finds the information to be correct, they must provide you with:

  • A written explanation

  • Evidence supplied by the creditor

  • A clear breakdown of your next options

You still have rights.

Step 5: Escalation to the NCR

If you believe the investigation was not handled correctly or the outcome is unfair, you may escalate the matter to the:

National Credit Regulator (NCR)

Consumers have the right to:

  • File a complaint

  • Submit all evidence

  • Request a full review

The NCR can compel further investigation or take regulatory action against non-compliant credit providers or bureau.

IV. Conclusion: Taking Control of Your Financial Narrative

Section 72(1) is one of the strongest consumer protection tools in the entire National Credit Act. It ensures that:

  • You can access your credit information

  • You can challenge errors without paying a cent

  • You receive notice before negative listings

  • You have recourse if disputes are not resolved fairly

Your credit report is not something to fear — it is a living document that reflects your financial behaviour and evolves with your actions. Understanding your rights under Section 72(1) transforms your relationship with credit from passive to powerful.

Being proactive is not only wise — it is a form of financial self-defence.

At MoneyShop.co.za, we honour and support your rights by providing fast, transparent access to your credit information and a fair dispute process designed to protect your financial reputation.

Your financial story should always reflect the truth.
Your credit profile should always be accurate.
And your rights should always be exercised — confidently and without hesitation.

Master your credit report. Challenge inaccuracies. Own your financial narrative.
Your rights under Section 72(1) make you the author of your financial future.

Until next time.

The MoneyShop Team

 

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.