Ignorance of the National Credit Act

On 16 November I received an SMS from Edgars advising that I qualify for a limit increase on my Edgars account. Some time later I responded "Yes" to indicate interest in the increase and on 21 November at 14:46 I received a call from Mpala. He conducted an affordability assessment and said the increase was declined.

I was completely surprised as my credit record is very good but an organisation reserves the right to apply their own criteria when granting credit. Fine.

When I asked for a reason for the decline Mpala said a reason was not supp**** and that the decision is determined by the system. HAS EDGARS EVER HEARD OF THE NCA????!!!!

I advised that I would like a reason for the decline in writing as is my RIGHT and he said he would refer it to his line manager. No such correspondence has been forthcoming.

Despite Mpala advising at the start of the call that Edgars is an authorised financial service provider there seems to be no understanding of the NCA. I will therefore do Edgars the profound courtesy of providing some education :

Section 62 of the NCA.Right to reasons for credit being refused

1)On request from a consumer, a credit provider must advise that consumer in writing of the dominant reason for:

a)refusing to enter into a credit agreement with that consumer;

b)offering that consumer a lower credit limit under a credit facility than app**** for by the consumer, or reducing the credit limit under an existing credit facility;

c)refusing a request from the consumer to increase a credit limit under anexisting credit facility; or

d)refusing to renew an expiring credit card or similar renewable credit facility with that consumer.

I want that letter immediately and I'll take matters from there. I also hope that auditors get a glimpse of this post and look into Edgars' ignorance regarding legislation for lending.