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
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:
- Does the Consumer in the agreement fall within the NCA (Section 4)?
- 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.