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

Chapter 4 : Consumer Credit Policy

Part C : Credit marketing practices

74. Negative option marketing and opting out requirements

1)        A credit provider must not make an offer to enter into a credit agreement, or induce a person to enter into a credit agreement, on the basis that the agreement will automatically come into existence unless the consumer declines the offer.


2)        Subject to section 119(4), a credit provider must not make an offer to increase the credit limit under a credit facility, or induce a person to accept such an increase, on the basis that the limit will automatically be increased unless the consumer declines the offer.


3)        A credit provider must not make a proposal to alter or amend a credit agreement, or induce a person to accept such an alteration or amendment, on the basis that the alteration or amendment will automatically take effect unless the consumer rejects the proposal, except to the extent contemplated in section 104, 116(a), 118(3) or 119(4).


4)        A credit agreement purportedly entered into as a result of an offer or proposal contemplated in subsection (1), is an unlawful agreement and void to the extent provided for in section 89.


5)        A provision of a credit agreement purportedly entered into as a result of an offer or proposal contemplated in subsection (2) or (3) is an unlawful provision and void to the extent provided for in section 90.


6)        When entering into a credit agreement, the credit provider must present to the consumer a statement of the following options and afford the consumer an opportunity to select any of those options:

a)        To decline the option of pre-approved annual credit limit increases as provided for in section 119(4), if the agreement is a credit facility; and

b)        to be excluded from any-

i)          telemarketing campaign that may be conducted by or on behalf of the credit provider;

ii)         marketing or customer list that may be sold or distributed by the credit provider, other than as required by this Act; or

iii)        any mass distribution of email or sms messages.


7)        A credit provider-

a)        must maintain a register in the prescribed manner and form of all options selected by consumers in terms of subsection (6); and

b)        must not act in a manner contrary to an option selected by a consumer in terms of subsection (6).

75. Marketing and sales of credit at home or work

1)        A credit provider must not harass a person in attempting to persuade that person to apply for credit or to enter into a credit agreement or related transaction.


2)        A credit provider must not enter into a credit agreement at a private dwelling except-

a)        during a visit pre-arranged by the consumer for that purpose;

b)        if a credit provider visited the private dwelling for the purpose of offering goods or services for sale, and incidentally offered to provide or arrange credit to finance the purchase of those goods or services; or

c)        if the credit agreement is of a prescribed category that is permitted to be entered into during a visit to a private dwelling.


3)        A credit provider must not visit a person’s place of employment for the purpose of inducing the person to apply for or obtain credit, or enter into a credit agreement at such a place, except-

a)        to enter into a credit agreement with the employer; or

b)        if the visit results from-

i)          a formal arrangement between the credit provider, on the one hand, and the employer and anyrepresentative trade union or employee, on the other; or

ii)         a non-prompted invitation by the person being visited.


4)        An employer who, or representative trade union that, enters into an arrangement with a credit provider as contemplated in subsection (3)(b)(i) must not receive any fee, commission, payment, consideration or other monetary benefit in exchange for making that arrangement, or as a consequence of a credit agreement entered into during or as a result of that arrangement.


5)        Subsections (2) to (4) do not apply in respect of developmental credit agreements.

76. Advertising practices

1)        This section does not apply to an advertisement-

a)        that does not make reference to a specific credit product or credit provider, and of which the dominant purpose is to promote-

i)          responsible credit practices; or

ii)         the use of credit generally;

b)        that generally promotes a specific credit provider, brand or type of credit agreement, but does not make specific reference to product price, cost or availability of credit; or

c)        by the seller of goods or services, or on the premises of such a person, if that notice or advertisement indicates only that the person is prepared to accept payment through a credit facility in respect of which another person is the credit provider.


2)        This section applies to the provider of credit that is being advertised, or the seller of any goods or services that are being advertised for purchase on credit.


3)        A person who is required to be registered as a credit provider, but who is not so registered, must not advertise the availability of credit, or of goods or services to be purchased on credit.


4)        An advertisement of the availability of credit, or of goods or services to be purchased on credit-

a)        must comply with this section;

b)        must contain any statement required by regulation;

c)        must not-

i)          advertise a form of credit that is unlawful;

ii)         be misleading, fraudulent or deceptive; or

iii)        contain any statement prohibited by regulation; and

d)        may contain a statement of comparative credit costs to the extent permitted by any applicable law or industry code of conduct, but any such statement must-

i)          show costs for each alternative being compared;

ii)         show rates of interest and all other costs of credit for each alternative;

iii)        be set out in the prescribed manner and form; and

iv)        be accompanied by the prescribed cautions or warnings concerning the use of such comparative statements.


5)        In any advertisement concerning the granting of credit, a credit provider must state or set out the interest rate and other credit costs in the prescribed manner and form.


6)        This section does not apply to developmental credit agreements if

a)        the National Credit Regulator has pre-approved a form of advertising to be used by the credit provider concerned; and

b)        the credit provider has used only that pre-approved form of advertising in advertising or promoting goods, services or credit to the particular consumer.


7)        When pre-approving any form of advertising as contemplated in subsection (6), the National Credit Regulator must balance the need for efficiency of the credit provider with the principles of this section.

77. Required marketing information

Any solicitation by or on behalf of a credit provider for the purpose of inducing a person to apply for or obtain credit must include a statement with the prescribed information for the particular type of solicitation.

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