Credit Flashcards
What is credit?
- A deferral of payment of money owed toa person or a promise to defer such a payment
- A promise to advance or pay money to or at the direction of another person.
What is a credit provider?
The party who supplies goods or services under a discount transaction, incidental credit agreement or instalment agreement.
What is a consumer?
The party to whom goods or services are sold under a discount transaction, incidental credit agreement or installment agreement.
What is a credit agreement?
An agreement that provides for a deferral or delay of payment and if there is a fee or interest charged for the deferred payment.
Does a credit agreement need to be in writing?
Not explicitly required to be in writing, but the agreement being memorialised is implied throughout the Act in regs 30 and 31.
Which case holds that credit agreements must be in plain language?
Standard Bank v Dlamini.
Which provision of the NCA holds that there is a right to information in plain and understandable language?
Section 64.
Which provision of the NCA holds that there is a right to information in official language?
Section 63.
What are the forms of credit transactions?
- Instalment agreement
- Unsecured money loans
- Pawn transactions
- Mortgage agreements
- Secured loans
- Leases
What is a credit guarantee?
A 3rd party agrees to pay to a credditor the amount owed bya consumer on demand e.g. suretyship
What is an incidental credit agreement?
An agreement ito which ana ccount was tendered for goods or services that have been provided to the consumer including over a period of time and interest was charged because of delay in payment.
What is a credit facility?
An agreement ito which a credit provider supplies goods or services or pays an amount to the consumer, and the consumer’s obligation is to pay the price or repay the money is deferred in exhcange for payment of interest and fees.
What is the NCR?
An indepndent organisationthat oversees the entire consumer credit industry.
What is the NCT?
An independent body that is a tribunal of record which conducts its proceedings in an informal, inquisitorial amnner with jurisdiction across SA.
What is the NCR required to do?
To establish and maintain register of certain persons and national register of credit agreements.
What is the register of certain persons?
It is the requirement for any and all credit providers, credit bureaux and debt counsellors to register with the NCR.
What is the national register of credit agreements?
A single national register of outstanding credit agreements.
What is the credit bureaux?
An entity that is engaged for payment in the business of receiving reports or investigating credit applications and agreements, payment history or patterns and other consumer credit information.
What is a debt counsellor?
A registrant who is required to do certain tasks such as facilitating, investigating and recommending solutions for over-indebtedness.
What is required for the conclusion of credit agreements?
- Pre-agreement disclosure
- Forms and contents of credit agreements
What is the requirement of pre-agreement disclosure?
- A credit provider must not enter into a credit agreement unless the credit provider has given the consumer a pre–agreement statement and quotation in the prescribed form. 2. Consumers must accept or reject the quotation within five days.
- Once the consumer has accepted the quotation. the credit agreement itself can then be concluded.
