Home
/
Our Insights
/
Article Detail
/
Home
/
Home
|
Login
Our Team
Our Expertise
Our Insights
BOOK CONSULTATION
SUBSCRIBE
Our Team
Our Expertise
Our Insights
You can share this article in the following networks2:
When am I required to register as a credit provider?
03 January 2019
458
“I run a small crafts shop in town. From time to time I allow some of my regular customers to pay me back over time. It’s usually not big amounts and I only do it to help them because I know times are tough. A friend warned me though that I should be careful as I may be required to register as a credit provider. Is this true?”
The credit industry is governed by the National Credit Act 34 of 2005 (“Credit Act”). A regulatory requirement of the Credit Act is that a person must register as a credit provider with the National Credit Regulator (“NCR”) if the total principal debt arising from the credit agreement exceeds the threshold prescribed by the Minister of Trade and Industry from time to time. In other words, if the amount owed by the consumer to a credit provider is above the threshold, that credit provider must register as a credit provider with the NCR, irrespective of whether the credit provider is involved in the credit industry or if it is a once-off transaction. Currently the threshold has been set at R0 (nil) which effectively then includes any credit agreement no matter how small the amount is. Failure to register as a credit provider may result in unlawful credit agreements that are void.
Notwithstanding the aforesaid, there are exemptions afforded in the Credit Act as not every credit provider is obliged to register with the NCR. These for example relate to exemptions from registering as a credit provider, being considered a credit provider as well as the types of credit agreements or transactions that fall within the ambit of the Credit Act. It is important for each person or business to assess whether its transactions fall within the ambit of the Credit Act and then further whether they may be exempted or would be required to register.
Our advice is to approach your attorney to discuss your type of transactions and whether such fall within the ambit of the Credit Act and if so whether you should register or not.
Previous
Can the majority of trustees request a trustee to resign?
Next
Can private schools have a termination clause in their contracts with parents?
Tags:
Credit
,
Credit Act
Share:
Talk to us
Get in touch with us to discuss how we can help you with your challenges
Get in touch
Related Insights
Small Credit Agreements - What are they and what interest can be charged
Debt Collection
Default Judgment? What should I do to clear my Credit Record?
Popular Insights
Dont' lose your Title Deed
Does your husband’s Nyatsi qualify to be a beneficiary in terms of Section 37C of the Pension Fund Act?
Who inherits under a Deceased Estate when there is no Will?
Recent Insights
The purpose behind the path of law
The furtherance of justice, a historic view
Small Credit Agreements - What are they and what interest can be charged
You can share this article in the following networks:
Offices
+27 57 916 6666
Back to top