BACKGROUND
The Consumer Credit Association (CCA) represents 115 member organisations operating mainly in the RETAIL CREDIT trade. Members include major retailers such as Edgars, Foschini, and Woolworths. The CCA’s objectives are related to the credit aspects of this trade.

DEFINITIONS
The definitions under S 1(i)(d):

And section 1(ii):

‘’administrator’ means an organ of state, judicial officer, prosecuting agency, a natural or juristic person taking administrative action’

are considered very broad. Our concern is that in its current form it may include administrative actions taken by employees of CCA members in the normal course of applying company policies and procedures such as present in computer CREDIT SCORING MODELS. These models are designed to assist in granting credit facilities to consumers that are fair and affordable.

Credit scoring models are developed at considerable expense for individual organisations to serve their particular target markets. They are based on the application of complicated mathematical and statistical formulae. The components and operation of these models form an important part of the credit policy organisation and is considered confidential in protecting their competitive advantage and market structure.

Access to such information as may be allowed under section 4(3)(a) is therefore a great concern to our members.

PROPOSED AMENDMENTS
It is recommended that the words ‘Associated with organs of state’ be added to section 1(1)(d) and section 1(ii).

CONCLUSION
In general we support the proposed legislation in providing fair protection to individuals as contemplated in the Constitution.