As a registered credit provider, we fully support the National Credit Act (NCA), which came into effect on 1 June 2007, and have implemented the necessary policies and procedures to meet the requirements of the NCA. The NCA replaces the Usury Act and the Credit Agreements Act. The information that follows will assist you in understanding how this legislation affects you.
The NCA applies to all credit agreements between parties dealing at arms length (where there is no personal interest between the parties). The NCA distinguishes between natural and juristic persons.
|Natural persons||Juristic persons|
Only certain provisions of the NCA apply to juristic persons. Provisions relating to marketing, over indebtedness and reckless credit do not apply to juristic persons.
The NCA in its entirety does not apply to juristic persons with an asset value or annual turnover of more that R1 million nor does it apply to juristic persons with an asset value or annual turnover of less than R1 million who enter into a mortgage agreement or an agreement with a loan value of more than R250 000.
The NCA affects all credit agreements entered into after 1 June 2007. Credit agreements entered into before 1 June 2007 remain unchanged and are governed by their original terms and conditions. There are however certain provisions of the NCA which apply to existing agreements.Listed below are some of the provisions of the NCA which we feel may be important for you to note as they apply to natural persons.
|Credit agreements entered into after 1 June 2007||Credit agreements entered into before and after 1 June 2007|
|What rights do you have?||What rights do you have?|
When entering into a new credit agreement with you, we will need to obtain your consent to market other products to you
We will give you notice before submitting negative information about you to credit bureaux
If you are married in community of property, you must obtain the written consent of your spouse before you apply for a loan
Interest rates, fees and charges will not change, except in accordance with your original credit agreement. If these change, we will notify you Should you fail to meet your obligations in terms of your agreement, you will be considered to be in default Once we have notified you of your default you have the following options available to you:
The NCA requires that credit providers perform a full credit assessment before entering into a credit agreement with the customer, this includes taking reasonable steps to ensure that:
In order to ensure that we protect you against over indebtedness we, in addition to our normal credit assessment, now perform an assessment of repayment ability for each loan application.
In order to ensure that you understand your rights and obligations and the risks and costs associated with the credit agreement you will receive a comprehensive pre-agreement statement and quotation that clearly identifies all the costs involved, the risks associated with the loan, and your rights and obligations. The quote is valid for a minimum of five business days during which you will be given an opportunity to consider the credit being offered. If you have any questions relating to this document we will assist you.
You may be over indebted if, after deducting your living expenses from your net salary, you have less cash left than the instalments of your total debt. You are or will soon be unable to repay your debts. If you believe you are over indebted you should start with:
Your first point of contact in resolving a complaint should always be our Customer Service Centre. If the complaint has not been resolved to your satisfaction then you may contact the National Credit Regulator.
|Customer Service Centre:||087 520 8200|
|National Credit Regulator:||0860 662 837|