> For the complete documentation index, see [llms.txt](https://docs.fraudcheck.co.za/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fraudcheck.co.za/guides/compliance-guides/credit-checks-and-prescribed-purposes.md). # Credit checks and prescribed purposes Why credit checks need a permitted purpose, and what you must do. **Who it is for:** anyone running [Individual credit score](https://developer.fraudcheck.co.za/product/screening/credit/individual-score) or [Individual credit check](https://developer.fraudcheck.co.za/product/screening/credit/individual-check), which require a prescribed purpose on every enquiry. {% hint style="info" %} This guide explains the rules and our controls. It is not legal advice, and deciding whether a purpose applies to your enquiry stays with you. {% endhint %} ## Why purpose matters South Africa's National Credit Act 34 of 2005 (NCA) controls who may access consumer credit information and why. A registered credit bureau may issue a credit report only for a purpose allowed by the Act and the National Credit Regulations, including the purposes described in Regulation 18. Every credit check run through Fraudcheck must therefore be linked to a lawful purpose before it is submitted. Fraudcheck activates purposes on your account after reviewing your business and intended use. The purpose determines whether the enquiry may be run, whether the person's consent is required and how the enquiry is recorded. Running a check without a valid purpose, or using the information for a reason other than the one declared, may breach the NCA, POPIA and your agreement with Fraudcheck. Access may be suspended where misuse or non-compliance is suspected. ## The permitted purposes The purposes below are available through the Fraudcheck platform. You will see only the purposes activated for your account. | Purpose | When it applies | Consent | | ------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | | **Fraud detection and prevention** | Detecting or preventing fraud, such as checking an applicant for fraud indicators when an account is opened. Only for subscribers Fraudcheck has approved for this purpose. | No | | **Employment** | Considering a candidate for a role that requires honesty in dealing with cash or finances, such as a cashier or bookkeeper. | Yes | | **Debtors book assessment** | Assessing a business or debtors book for a sale or another transaction that depends on its value. | No | | **Qualification and employment verification** | Verifying a person's education and employment history for an employer or employment agency. | Yes | | **Unclaimed funds** | Locating a person so an insurer, pension fund or its agent can distribute unclaimed funds. | No | | **Tracing by a credit provider** | A credit provider, or its agent, tracing a consumer in relation to a credit agreement. Tracing by a collector that is not a credit provider requires consent. | No | | **Credit-scoring development** | A credit provider or credit bureau developing or testing a credit-scoring system. | No | | **Consumer-directed or other non-credit purpose** | A check directed by the consumer, or another permitted purpose not intended to provide consumer credit. | Yes | | **Affordability assessment** | A credit provider assessing whether a consumer can afford a proposed credit agreement. Not available to incidental credit providers or education institutions. A credit provider that is not registered requires consent. | No | | **Existing-account management** | A credit provider assessing the creditworthiness of a consumer with an existing credit agreement. | Yes | | **Credit assessment for an application** | A credit provider assessing a consumer's repayment history for a credit application. | No | | **Purpose required by other legislation** | Access required by another national law and by a person authorised under that law. | Dependent on the legislation | For the formal definitions and any conditions that apply, see [Annexure B of the Terms of Use](https://www.fraudcheck.co.za/terms/). ## Declaring a purpose Choose the purpose that applies when you run the check, in the portal or on the API request. Both individual credit products require it. For business credit checks a purpose is optional. In the portal: 1. Start a new credit check and enter the person's details. 2. Choose the actual reason for the check in the **Prescribed Purpose** field. Only purposes activated for your account are listed, and those that need consent are marked *(Consent Required)*. 3. Confirm that consent has been obtained. For a purpose marked *(Consent Required)*, also upload or e-sign the consent document. 4. Run the check. Choose the purpose that matches the real reason for the enquiry. Do not select a different purpose simply because it is available on your account. ## What we record For each credit check, Fraudcheck records an audit trail that includes: * The user who ran the check, and the account and cost centre used * The date and time of the check * The details of the person checked * The declared purpose and any client reference supplied * Confirmation of consent where the purpose requires it * The returned result and generated report These records may be required for an audit by Fraudcheck, a source credit bureau or the National Credit Regulator. Fraudcheck retains personal information only for as long as needed to deliver the service, meet regulatory requirements, maintain fraud-prevention records or resolve disputes; see the [Privacy Policy](https://www.fraudcheck.co.za/privacy/). The source credit bureau also records the enquiry on the person's credit profile, including the organisation that made it. Under Regulation 17, enquiry information may be displayed for up to one year. ## Your obligations * Run a check only for a lawful purpose activated on your account, and declare that purpose truthfully. * Obtain consent whenever the purpose or applicable law requires it, and keep proof of that consent. See [Consent and permissible use](https://developer.fraudcheck.co.za/product/how-it-works/consent). * For an employment check, use credit information only for a position that requires honesty in dealing with cash or finances. Keep the candidate's written consent and a job description that clearly shows this requirement. * Use the information only for the declared purpose. Do not use it for marketing or share it with anyone who is not entitled to receive it. * Keep credit information confidential and secure in line with the NCA and POPIA. * Allow only authorised users with an appropriate role to run credit checks, and never share login credentials. * Cooperate with compliance reviews or audits and provide purpose, consent and supporting records when requested. Misuse of consumer credit information may result in access being suspended and may expose your organisation to regulatory action. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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