Bobo M

Mandatory Credit Check on your Profile every Six Months

Lula (formerly known as Lulalend) has implemented a policy of conducting automatic credit enquiries on customer profiles every six months, regardless of whether an outstanding balance exists on the account and without obtaining explicit ongoing consent for each enquiry. I personally encountered this in June 2025 and again in December 2025. In June, the explanation provided was that the enquiry was necessitated by an existing balance on the account. Accordingly, I settled the balance in full. However, another enquiry was performed on 15 December 2025 at approximately 2:00 a.m. On this occasion, the stated rationale was: “While the outstanding capital may be settled, the approved credit line remains open and available for you to use. To maintain this active status and ensure the facility is compliant and ready for your immediate use, a mandatory credit check is performed every six months.” I maintain open credit facilities with several major institutions, including Absa, FNB, Standard Bank, and Capitec. If these providers adopted a similar practice of mandatory credit enquiries every six months on active credit lines, the cumulative number of enquiries on my credit profile would be substantial and potentially detrimental.