ARTICLE
6 January 2021

Does Your Business Have To Register As A Credit Provider In Terms Of The National Credit Act?

BA
Bentley Attorneys
Contributor
Bentley Attorneys logo
Bentley Attorneys is a specialist credit law and debt recovery law firm, starting as Bentley Warne Attorneys in April 1994 and then in September 1998 became Bentley Attorneys. Bentley Attorneys has over the years developed a strong mix of commercial clients, from small businesses to the largest private company in the country, J.S.E. listed clients and banks. We service commercial clients who are not looking for a general law practice where debt recovery matters take a back seat and who also require attorneys with an in depth knowledge of the relevant legal areas of law with developments such as the National Credit Act, the Companies Act and Consumer Protection Act. Our approach to law is innovative and proactive.
In this video, Brett Bentley explores the registration requirements for a business to be required to register as a credit provider in terms of the befuddling South African National Credit Act.
South Africa Finance and Banking
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In this video, Brett Bentley explores the registration requirements for a business to
be required to register as a credit provider in terms of the befuddling South
African National Credit Act.

Section 40 (1) of the National Credit Act , " A person must apply to be registered as a credit provider if the total principal debt owed to that credit provider under all outstanding credit agreements, other than incidental credit agreements, exceeds the threshold prescribed in terms of section 42 (1). " This is not quite as simple
as it seems and one needs to to determine the applicability of the NCA to any
particular transaction, which involves answering a two-fold enquiry drawn from
the provisions of Section 4 of the Act:

  1. Does the Consumer in the agreement fall within the NCA (Section 4)?
  2. Does the transaction fall within the definition of credit agreement
    as set out in Section 8?

A related article is:   "When Does The National Credit Act Apply To A Transaction? "

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
6 January 2021

Does Your Business Have To Register As A Credit Provider In Terms Of The National Credit Act?

South Africa Finance and Banking
Contributor
Bentley Attorneys logo
Bentley Attorneys is a specialist credit law and debt recovery law firm, starting as Bentley Warne Attorneys in April 1994 and then in September 1998 became Bentley Attorneys. Bentley Attorneys has over the years developed a strong mix of commercial clients, from small businesses to the largest private company in the country, J.S.E. listed clients and banks. We service commercial clients who are not looking for a general law practice where debt recovery matters take a back seat and who also require attorneys with an in depth knowledge of the relevant legal areas of law with developments such as the National Credit Act, the Companies Act and Consumer Protection Act. Our approach to law is innovative and proactive.
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