Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

2022 - Bus Law II > 1) NCA > Flashcards

1) NCA Flashcards

You may prefer our related Brainscape-certified flashcards:
MBE flashcards MPRE flashcards Civil Procedure 1L flashcards
1
Q

what are the two identifying features of a credit agreement?

A
  • C is owed by D

- there is a cost to D for the agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

how is a credit agreement extended?

A
  • C lends to D
  • C pays third party on instruction of D
  • C and D agree that D will repay debt at future time
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is the definition of financial inclusion?

A

all will have timely, fair access to safe, appropriate, affordable financial p/s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are some of the aims of the NCA?

A
  • promote financial inclusion & resp borrowing
  • prevent reckless lending
  • balance rights/duties of C/P
  • improve consumer access to info
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

which individuals are considered consumers under the NCA?

A
  • ALL natural persons who borrow money under credit agreement
  • very small JPs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

which JPs are considered consumers under NCA?

A

companies, partnerships, trusts, but NOT stokvels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what makes a JP a small JP?

A

1) amount lent is <250k and not secured by mortgage

2) asset val and annual turnover < R1mil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

when is an individual considered a credit provider?

A
  • anyone who lends money in a credit agreement to a consumer

- do not need to lend as part of business or be registered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are the effects of an unregistered provider?

A
  • will not be able to lawfully enforce agreement

- the agreement will be unlawful and void

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

who does the provider register with?

A

the National Credit Regulator

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is the general rule for the NCA to apply to an agreement?

A

a loan to a customer at arm’s length where there is a cost of credit, will be covered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are the 5 requirements for the NCA to apply to an agreement?

A

1) time factor
2) parties def
3) credit agreement def
4) arm’s length requirement
5) territoriality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what does the time factor look at?

A

when the agreement was entered into

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

when did the NCA come into force?

A

1 June 2007

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

when is an agreement NOT at arm’s length?

A
  • between natural person family members where one is dependent on the other
  • loan by company to SH/SH to company
  • loan by JP to someone who controls the JP (or vice versa, must be a consumer)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is the catch-all provision which will make an agreement at-arm’s-length?

A

if all parties looked after their own interests when negotiating the agreement and there must be no control of one over the other

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what does the territoriality req say?

A
  • agreement must be made in OR have effect within SA
  • credit provider does not have to live in SA
  • cons can apply for exemption of agreement if creditor is outside SA
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

which agreements will not be considered credit agreements for NCA purposes?

A
  • insurance contracts
  • leases of immovable property
  • large agreement loan to JP
  • credit by insurer to consumer insured, to maintain payment of premiums
  • stokvels
  • agreement that says the utility provider with defer pmt of utility
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

when is a credit agreement large?

A

> = 250k
OR
secured by mortgage of immovable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

when will an entire agreement be considered unlawful?

A
  • provider is not registered
  • cons is unemancipated minor and unassisted
  • cons declared mentally unfit by HC
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what must the court do if it finds the agreement to be unlawful?

A
  • declare void

- make any additional order it deems just and equitable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what will happen for the creditor if the agreement is unlawful and thus void?

A

the provider may only claim back their owed money via unjustified enrichment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

which provisions would be considered unlawful?

A
  • provision that defeats the purposes of the NCA
  • provision that requires the cust to give up their consumer rights under NCA
  • provision that intends to deceive/fraud the cons
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what must the court do if they find an unlawful provision?

A
  • remove it
  • declare entire thing void
  • can make any other J&E order
25
Q

what are some of the rights of consumers?

A
  • non-discrimination
  • apply for credit
  • receive agreement in understandable language (must be reasonable to ask creditor)
  • protection against unfair market practices
  • apply for debt review
26
Q

what are some of the rights of consumers regarding the credit bureau?

A
  • to info held by bureau (be informed the D’s info is being taken to the bureau)
  • to have adverse info held by the bureau expunged
27
Q

what are the 3 subcategories of credit agreement?

A
  • facility
  • transaction
  • guarantee
28
Q

what is a credit facility?

A

C provides g/s to D or pays money to D or pays money to 3P directed by D and:

  • pmt thereof is deferred
  • cost to credit
29
Q

what are all the types of credit transactions?

A
  • pawn transaction
  • discount transaction
  • incidental credit agreement
  • instalment agreement
  • mortgage agreement
  • secured loan
  • lease
  • other
30
Q

what is a pawn transaction?

A

money lent to D by pawnbrokers who take movable as security and it is returned when loan is repaid / sold if not

31
Q

what is a discount transaction?

A
  • g/s are provided over period of time & discount is offered for early settlement
  • two prices
32
Q

what is an incidental credit agreement?

A

g/s are provided over period of time and D gets an account from C. if amount is not paid by specific date, cost of credit is payable through either interest or a higher price.

33
Q

what is an instalment agreement?

A
  • movable prop is sold to C and price paid in instalments over time which incl. cost of credit
  • D can retain ownership, not always
34
Q

what happens if D defaults on instalment agreement?

A

C can cancel the contract for breach and get court to repossess the goods

35
Q

what is a mortgage agreement?

A

D borrows money from a provider and there is a mortgage bond registered over the immovable of D to secure the loan

36
Q

what is a secured loan?

A

D borrows money from a provider and there is cost of credit payable, and security over the movable of D to secure the loan

37
Q

what is a lease?

A
  • rent to own
  • movable is rented to D over time and D pays rent instalments over time
  • at end, ownership passes at end
38
Q

what is the catch-all provision for credit transactions?

A

any agreement where credit and fees/int/charges are charged where cons borrows money and there is a cost to credit

39
Q

what is a credit guarantee?

A
  • where a consumer undertakes to settle an obl owing to a provider by another consumer ito an NCA agreement
40
Q

what are the requirements for a credit guarantee?

A
  • both party providing guarantee and actual debtor must be consumers
  • underlying debt must be subject to NCA
41
Q

example of credit guarantee?

A

surety

42
Q

what is a small credit agreement?

A

R15k or less

43
Q

what is a intermediate credit agreement?

A

R15k to R250k

44
Q

which transactions are always small?

A

pawn

45
Q

which transactions are always large?

A

mortgage

46
Q

what is the difference between a pawn and secured loan?

A

pawn keeps all proceeds

47
Q

what is the conclusion date of a contract?

A

date that contract kicked off / date from which NCA will apply

48
Q

what are the aims of the National Credit Regulator?

A
  • promote and support aims of NCA
  • regulates cons credit
  • deal with cons complaints
49
Q

who does the NCR keep a register of?

A
  • credit bureaux
  • credit providers
  • debt counsellors
50
Q

what are the requirements for the Credit Bureaux?

A
  • register with NCR

- not a natural person

51
Q

what are the duties of Credit Bureaux?

A

investigate and maintain consumer credit records

52
Q

what are the duties of debt counsellors?

A
  • assess for over-indebtedness through debt review

- investigate if credit was recklessly lended

53
Q

what does the National Cons Tribunal do?

A
  • function like a court and make orders for consumer complaints
54
Q

what is the status of NCT orders?

A

same as HC orders, but only certain matters

55
Q

what does the NCR do if they find that there has been an NCA breach?

A

issue a compliance notice which tells them how they are in breach, how to fix it, a date by when to fix it (or face a fine).

56
Q

what orders can the NCT not make?

A

cannot declare agreement/provision void

57
Q

what does rescinding the judgement mean?

A

restoring the judgement

58
Q

what is the difference between credit facility and incidental credit agreement?

A
  • in incidental, provider does not expect to get money through interest; the consumer only pays interest when in default (to compensate provider)
  • in facility, the interest payments are part of the agreement
59
Q

at what point does an incidental agreement become one?

A

20 business days after the late fee is charged

2022 - Bus Law II (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions