National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 3 : Consumer Credit Industry Regulation

Part B : Compliance procedures and cancellation of registration


54. Restricted activities by unregistered persons

1)        Subject to subsection (2), the National Credit Regulator may issue a notice in the prescribed form to any person who, or association of persons, that-

a)        is engaging in an activity that, in terms of this Act, requires registration, or offering to engage in such an activity, or holding themselves out as authorised to engage in such an activity; and

b)        is not registered in terms of this Act to engage in that activity,

requiring that person or association to stop engaging in, offering to engage in or holding themselves out as authorised to engage in, that activity.

 

2)        Before issuing a notice in terms of subsection (1) to a regulated financial institution, the National Credit Regulator must consult with the regulatory authority that issued a licence to that regulated financial institution.

 

3)        A notice contemplated in subsection (1) must set out-

a)        the name of the person or association to whom the notice applies;

b)        details of the nature and extent of the activity concerned;

c)        the date from which the unregistered person must discontinue engaging in that activity;

d)        the basis of the opinion that the person engaging in that activity is required to be registered; and

e)        any penalty that may be imposed in terms of this Act if the person fails to discontinue that activity.

 

4)        Subject to section 59, a notice issued in terms of this section remains in force until-

a)        a registration certificate is issued to the person to whom the notice was issued;

or

b)        the notice is set aside by the Tribunal, or a court upon an appeal or review of a Tribunal decision Concerning the notice.

 

5)        Failure to comply with a notice issued in terms of this section is an offence.

55. Compliance notices

1)        Subject to subsection (2), the National Credit Regulator may issue a compliance notice in the prescribed form to-

a)        a person or association of persons whom the National Credit Regulator on reasonable grounds believes-

i)          has failed to comply with a provision of this Act; or

ii)         is engaging in an activity in a manner that is inconsistent with this Act; or

b)        a registrant whom the National Credit Regulator believes has failed to comply with a condition of its registration.

 

2)        Before issuing a notice in terms of subsection (1)(a) to a regulated financial institution, the National Credit Regulator must consult with the regulatory authority that issued a licence to that regulated financial institution.

 

3)        A compliance notice contemplated in subsection (1) must set out-

a)        the person or association to whom the notice applies;

b)        the provision, or condition, that has not been complied with;

c)        details of the nature and extent of the non-compliance;

d)        any steps that are required to be taken and the period within which those steps must be taken; and

e)        any penalty that may be imposed in terms of this Act if those steps are not taken.

 

4)        Subject to section 59, a compliance notice issued in terms of this section remains in force until-

a)        it is set aside by the Tribunal, or a court upon an appeal or review of a Tribunal decision concerning the notice; or

b)        the National Credit Regulator issues a compliance certificate contemplated in subsection (5).

 

5)        If the requirements of a compliance notice issued in terms of subsection (1) have been satisfied, the National Credit Regulator must issue a compliance certificate.

 

6)        If a person fails to comply with a compliance notice as contemplated in this section without raising an objection in terms of section 56, the National Credit Regulator may refer the matter-

a)        to the National Prosecuting Authority, if the failure to comply constitutes an offence in terms of this Act; or

b)        otherwise, to the Tribunal for an appropriate order.

56. Objection to notices

1)        Any person issued with a notice in terms of section 54 or 55 may apply to the Tribunal in the prescribed manner and form to review the notice within-

a)        15 business days after receiving that notice; or

b)        such longer period as may be allowed by the Tribunal on good cause shown.

 

2)        After considering any representations by the applicant and any other relevant information, the Tribunal may confirm, modify or cancel all or part of a notice.

 

3)        If the Tribunal confirms or modifies all or part of a notice, the applicant must comply with that notice as confirmed or modified, within the time period specified in it.

57. Cancellation of registration

1)        Subject to subsection (2), a registration in terms of this Act may be cancelled by the Tribunal on request by the National Credit Regulator, if the registrant repeatedly-

a)        fails to comply with any condition of its registration;

b)        fails to meet a commitment contemplated in section 48(1); or

c)        contravenes this Act.

 

2)        In any circumstance contemplated in subsection (1) concerning a registrant that is a regulated financial institution, the National Credit Regulator may

a)        impose conditions on the registration of that person, consistent with its licence;

b)        refer the matter to the regulatory authority that licensed that regulated financial institution, with a request that the regulatory authority review that licence in the circumstances; or

c)        at the request, or with the consent, of the regulatory authority that licensed that regulated financial institution, request the Tribunal to cancel the registration.

 

3)        A regulatory authority to whom a matter is or may be referred in terms of subsection (2)(b)-

a)        must conduct a formal review of the registrant’s licence;

b)        to the extent permitted by the legislation in terms of which the registrant is licensed, may suspend that licence pending the outcome of that review; and

c)        may request, or consent to, the National Credit Regulator filing a request with the Tribunal as contemplated in subsection (2)(c).

 

4)        The National Credit Regulator must attempt to reach an agreement as contemplated in section 17(4) with any regulatory authority that issues licences to regulated financial institutions, to co-ordinate the procedures to be followed in taking any action in terms of subsections (2) and (3).

 

5)        If the Tribunal has cancelled a registration, the National Credit Regulator must notify the registrant in writing of-

a)        the cancellation;

b)        the reasons for the cancellation; and

c)        the date of cancellation.

 

6)        If a registration is cancelled in terms of this section or section 58, the National Credit Regulator must-

a)        cancel the registration certificate; and

b)        amend the register accordingly.

 

7)        A registration is cancelled as of-

a)        the date on which the Tribunal issues an order, or

b)        in the case of a cancellation in terms of section 58, the date specified by the registrant in the notice of voluntary cancellation.

 

8)        A registrant whose registration has been cancelled must not engage in any formerly registered activities after the date on which the cancellation takes effect.

 

9)        The obligations of-

a)        a registrant under this Act, or under any credit agreement in respect of which it is the credit provider, survive any suspension or cancellation of its registration; and

b)        a consumer under a credit agreement survive the cancellation of the credit provider’s registration.

58. Voluntary cancellation of registration

A registrant may cancel its registration by giving the National Credit Regulator written notice in the prescribed manner and form-

a)        stating the registrant’s intention to voluntarily cancel the registration; and

b)        specifying a date, at least five business days after the date of the notice, on which the cancellation is to take effect.

59. Review or appeal of decisions

1)        A person affected by a decision of the National Credit Regulator under this Chapter may apply to the Tribunal to review that decision, and the Tribunal may make an order confirming or setting aside the decision in whole or in part.

 

2)        An order contemplated in subsection (1) may include an order setting aside any condition attached to a registration if the Tribunal is not satisfied that the condition is reasonable and justifiable, having regard to the objects and purposes of this Act, the circumstances of the application or review, as the case may be, and the provisions of section 48.

 

3)        A decision by the Tribunal in terms of this section is subject to appeal to, or review by, the High Court to the extent permitted by section 148.

Debt Counsellors

Marsia Kuypers

Tel: 082 396 2568

Fax: 086 556 3328

Area: Pretoria

Jan-Viljoen Coetzee

Tel: 084 549 1755

Fax: 086 621 9193

Area: Nina Park

Valerie Nakale

Tel: 018 381 8768

Fax: 018 381 8604

Area: Mafikeng

Dean Morris

Tel: 083 645 4094

Fax: 031 763 4363

Area: La Lucia

Joana Vivier

Tel: 053 832 6229

Fax: 086 543 4640

Area: Kimberley

Jacques Jooste

Tel: 011 794 7555

Fax: 011 794 9965

Area: Johannesburg

Marlene Stein

Tel: 012 667 4177

Fax: 086 527 2203

Area: Irene

Heidi Naude

Tel: 044 873 0281

Fax: 086 512 5012

Area: George

Herbert Theron

Tel: 011 472 0088

Fax: 086 655 6730

Area: Florida

Isabe Landman

Tel: 041 933 1189

Fax: 086 591 2676

Area: Despatch

Andiswa Tinto

Tel: 021 431 9134

Fax: 086 523 7084

Area: Cape Town

Jaco Janse Van Rensburg

Tel: 082 568 4969

Fax: 086 645 0389

Area: Barberton

Monique Snyders

Tel: 032 946 3024

Fax: 086 588 4605

Area: Ballito

Christopher Beukes

Tel: 084 2577599

Fax: 021 637 5023

Area: Athlone

Lydia Kinnear

Tel: 082 824 6338

Fax: 086 537 5976

Area: Annlin

Anlizette Schuurman

Tel: 031 903 3840

Fax: 031 701 5570

Area: Amanzimtoti

Kelebogile Mooketsi

Tel: 082 299 3430

Fax: 086 695 3280

Area: Amandasig

Annerie Marais

Tel: 083 703 0486

Fax: 045 838 6572

Area: Aliwall North

Rerandzo Mokgwatlheng

Tel: 082 430 6329

Fax: 011 805 8348

Area: Alexandra Township

Daniel Lezar

Tel: 011 907 1022

Fax: 011 907 1490

Area: Alberton