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

Chapter 5 : Consumer Credit Agreements

Part B : Disclosure, form and effect of credit agreements

92. Pre-agreement disclosure

1)        A credit provider must not enter into a small credit agreement unless the credit provider has given the consumer a pre-agreement statement and quotation in the prescribed form.


2)        A credit provider must not enter into an intermediate or large credit agreement unless the credit provider has given the consumer-

a)        a pre-agreement statement-

i)          in the form of the proposed agreement; or

ii)         in another form addressing all matters required in terms of section 93;


b)        a quotation in the prescribed form, setting out the principal debt, the proposed distribution of that amount, the interest rate and other credit costs, the total cost of the proposed agreement, and the basis of any costs that may be assessed under section 121(3) if the consumer rescinds the contract.


3)        Subject only to subsection (4), sections 81 and 101(1)(d)(ii), for a period of five business days after the date on which a quotation is presented in terms of subsection (2)(b)-

a)        with respect to a small agreement, the credit provider must, at the request of the consumer, enter into the contemplated credit agreement at or below the interest rate or credit cost quoted, subject only to sections 81 and 101(1)(d)(ii);

b)        with respect to an intermediate or large agreement, the credit provider must, at the request of the consumer, enter into the contemplated credit agreement at an interest rate or credit cost that-

i)          is at or below the interest rate or credit cost quoted; or

ii)         is higher than the interest rate or credit cost quoted by a margin no greater than the difference between the respective prevailing bank rates on the date of the quote, and the date the agreement is made.


4)        If credit is extended for the purchase of an item with limited availability, the credit provider may state that the quotation provided in terms of this section is subject to the continued availability of the item during the period contemplated in subsection (3).


5)        The Minister may prescribe different forms to be used in terms of this section in respect of-

a)        developmental credit agreements; and

b)        other credit agreements.


6)        A statement that is required by this section to be delivered to a consumer may be transmitted to the consumer in a paper form, or in a printable electronic form.


7)        This section does not apply to any offer, proposal, pre-approval statement or similar arrangement in terms of which a credit provider merely indicates to a prospective consumer a willingness to consider an application to enter into a hypothetical future credit agreement generally or up to a specified maximum value.

93. Form of credit agreements

1)        The credit provider must deliver to the consumer, without charge, a copy of a document that records their credit agreement, transmitted to the consumer in a paper form, or in a printable electronic form.


2)        A document that records a small credit agreement must be in the prescribed form.


3)        A document that records an intermediate or large agreement-

a)        must be in the prescribed form, if any, for the category or type of credit agreement concerned; or

b)        if there is no applicable prescribed form, may be in any form that-

i)          is determined by the credit provider; and

ii)         complies with any prescribed requirements for the category or type of credit agreement concerned.


4)        The National Credit Regulator may publish guidelines for methods of assessing whether a statement satisfies any prescribed requirements contemplated in subsection (3).


5)        The Minister may prescribe different forms to be used in terms of subsection (2) in respect of-

a)        developmental credit agreements; and

b)        other credit agreements.

94. Liability for lost or stolen cards or other identification devices

1)        If a credit facility provides for access to that facility by use of a card, personal identification code or number or similar identification device, the document that records that credit agreement must set out a contact telephone number at which the consumer may report the loss or theft of that card, personal identification code or number or other device.


2)        A credit provider must not impose a liability on a consumer for any use of a credit facility after the time that the consumer has reported the loss or theft of the associated card, personal identification code or number or similar device, unless-

a)        the consumer’s signature appears on the voucher, sales slip, or similar record evidencing that particular use of the credit facility; or

b)        the credit provider has other evidence sufficient to establish that the consumer authorised or was responsible for that particular use of the credit facility.

95. Changes, deferrals and waivers

The provision of credit as a result of a change to an existing credit agreement, or a deferral or waiver of an amount under an existing credit agreement, is not to be treated as creating a new credit agreement for the purposes of this Act if the change, deferral or waiver is made in accordance with this Act or the agreement.

96. Address for notice

1)        Whenever a party to a credit agreement is required or wishes to give legal notice to the other party for any purpose contemplated in the agreement, this Act or any other law, the party giving notice must deliver that notice to the other party at-

a)        the address of that other party as set out in the agreement, unless paragraph (b) applies; or

b)        the address most recently provided by the recipient in accordance with subsection (2).


2)        A party to a credit agreement may change their address by delivering to the other party a written notice of the new address by hand, registered mail, or electronic mail, if that other party has provided an email address.

97. Consumer must disclose location of goods

1)        This section applies to a credit agreement if-

a)        it concerns any goods, and the consumer at any time during the agreement has or had possession of those goods; and

b)        in terms of that agreement-

i)          the title to those goods has not passed to the consumer; or

ii)         the credit provider has a right to take possession of the goods irrespective of whether they are owned by the consumer or another person.


2)        Until the termination of an agreement to which this section applies, the consumer must inform the credit provider, in the prescribed time, manner and form, of any change concerning-

a)        the consumer’s residential or business address;

b)        the address of the premises in which any goods that are subject to the agreement are ordinarily kept; and

c)        the name and address of any other person to whom possession of the goods has been transferred.


3)        On request by the credit provider, a deputy sheriff or messenger of the court, the consumer must inform that person, in the prescribed manner and form, of the address of the premises where the goods are ordinarily kept and the name and address of the landlord, if any, of those premises.


4)        If at the time of a request under subsection (3) the consumer is no longer in possession of the goods that are subject to the agreement, the consumer must provide the name and address of the person to whom possession of those goods has been transferred.


5)        A consumer who knowingly-

a)        provides false or misleading information to a credit provider, deputy sheriff or messenger of the court under this section; or

b)        acts in a manner contrary to this section with intent to frustrate or impede a credit provider exercising rights under this Act or a credit agreement,

is guilty of an offence.

98. Agreement attaches to substituted goods

If, after delivery to the consumer of goods that are subject to a credit agreement, the consumer and the credit provider agree to substitute other goods for all or part of the goods so described-

a)        from the date of delivery of the substituted goods, the credit agreement applies to the substituted goods rather than the goods originally described; and

b)        the credit provider must prepare and deliver to the consumer an amended credit agreement describing the substituted goods, but without making any other changes to the original agreement.

99. Obligations of pawn brokers

1)        A credit provider who enters into a pawn transaction with a consumer-

a)        must specify in the credit agreement a date on which the agreement ends;

b)        must retain until the end of the credit agreement, and at the risk of the credit provider, any property of the consumer that is delivered to the credit provider as security under the credit agreement; and

c)        must deliver any property referred to in paragraph (b) to the consumer if the consumer pays, or tenders the money required to pay, the settlement value under the agreement at any time up to and including the date on which the agreement ends.


2)        If a credit provider contemplated in this section fails to deliver any property to the consumer as required in subsection (1)(c) the Tribunal, on application by the consumer, may order the credit provider to pay to the consumer an amount equal to-

a)        the fair market value of the property, less the settlement value at the time of failure to deliver that property, as determined by the Tribunal, if the reason for the failure to return the property is that it has been damaged or destroyed by an intervening cause outside the control of the credit provider; or

b)        double the fair market value of the property, less the settlement value at the time of failure to deliver that property, as determined by the Tribunal, if the reason for the failure to return the property is other than as contemplated in paragraph (a).


3)        If property contemplated in subsection (2) has been sold by the credit provider, evidence of the price at which that property was sold may be considered by the Tribunal, but is not conclusive, in determining the fair market value of that property.

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