An MTN customer recently told MyBroadband they had been denied a smartphone contract through MTN’s online application process despite being financially capable of paying for the device.
Instead, MTN told the customer it was only able to sell them a SIM-only contract.
The user also said that they had contacted the sales department of MTN to determine why they were not allowed to get the smartphone contract.
They said they have a monthly income in excess of what they believed would be required, and their credit score is in good standing.
However, the MTN sales representative told the customer they could not find out why the contract had been declined.
The user was also told that there wasn’t another department that could help them, and a physical store would give them the same answer.
The user would, therefore, have to wait for a further three months before being able to apply again.
MTN explains the application process
MyBroadband asked MTN about the situation and the company investigated the case.
It told MyBroadband that its credit and affordability evaluation had indeed indicated that the customer qualified for a SIM-only package.
“MTN conducts credit and affordability audits based on the customer’s credit history, risk grade and the current regulatory requirements. We have a segmented approach with a variety of product offerings which aligns to customers’ needs and companies risk appetite,” said MTN.
While the customer said that another agent had since told them the decision was based on ‘negative bureau information,’ MTN said this was not the case.
“The decision made on the customer application was not based on negative bureau information but more to do with affordability,” said MTN.
“A means test in which imputed salary amount, current credit commitments, and living expense was performed to derive affordability.”
“This practice is aligned to that prescribed by the National Credit Act.”
MTN also noted that an application must be submitted with supporting documents including a three-month bank statement and proof of income.
The network said that in the case mentioned above, the customer did not submit these documents – which resulted in the smartphone contract being declined.