DEPARTMENT OF TRADE AND INDUSTRY …

1 MASTERMIND ALLIANCE ADAPTATION 1 DEPARTMENT OF TRADE AND INDUSTRY REGULATIONS IN TERMS OF THE national CREDIT ACT, 34 OF 2005 No. 489 of 31 May 2006 INDEX OF CONTENT CHAPTER 1 INTERPRETATION AND APPLICATION OF 3 1. 3 2. Application of 4 3. Extensions of prescribed time 4 CHAPTER 2 REGISTRATION REQUIREMENTS, CRITERIA AND 4 Part A Registration requirements for all 4 4. Application for 4 5. Disqualification of natural person from 5 6. Conditions of 5 7. Review of conditions of 5 8. Certificate of 5 Part B Cancellation of 5 9.

2 Voluntary cancellation of 6 Part C Debt 6 10. Further criteria for registration as a debt 6 Part D Compliance 6 11. Receiving of funds by a debt 6 12. Appointment of inspectors and 7 13. Notice to unregistered persons who are conducting registered 7 14. Compliance notice to 7 15. Objection to 7 16. Administrative 7 CHAPTER 3 CONSUMER CREDIT 8 Part A Credit 8 17. Retention periods for credit bureau 8 18. Maintenance and retention of consumer credit 9 19. Submission of consumer credit information to credit 11 Part B Consumer 12 20.

3 Right to access and challenge credit records and 12 Part C Credit market 12 21. Required contents for advertising 12 22. Required format for advertising 13 Part D Over-indebtedness, reckless lending and debt 14 23. Reckless 14 24. Application for debt 14 25. Letter of 17 26. Debt restructuring by court 17 27. Clearance 18 CHAPTER 4 CONSUMER CREDIT 18 MASTERMIND ALLIANCE ADAPTATION 2 Part A Pre-agreement 18 28. Pre-agreement statement and quotation for small 18 29. Pre-agreement statement and quotation for intermediate or large 18 Part B Form of credit 20 30.

4 Prescribed form for small 20 31. Requirements for intermediate or large 20 33. Credit 25 34. Disclosure of location of 25 35. Statement of 26 36. Changes to 27 37. Consumer's right to rescind a credit 27 38. Charges to other 27 CHAPTER 5 INTEREST AND 28 Part A 28 39. 28 Part B General 29 40. Interest 29 41. Dates upon which fees became due and 30 Part C Interest applicable to different 31 42. Maximum prescribed interest and initiation 31 Table A: Maximum Prescribed Interest 31 Table B: Maximum Initiation 32 43.

5 Supplementary conditions on the application of the maximum initiation 33 44. Maximum service 33 45. Periodic review of limitations on fees and interest 33 Part D Other fees costs and 33 46. Default Administration 34 47. Collection 34 48. Other 34 CHAPTER 6 DISPUTE 34 49. Failed alternative dispute 34 50. Initiating a complaint to the national Credit 34 51. Initiating applications to 35 52. Notice of 35 53. Application for referral to a different consumer court or the 35 54. Referral to the 35 CHAPTER 7 RECORD KEEPING AND 36 Part A 36 55.

6 Records of registered activities to be retained by 36 56. Time for keeping records of credit applications and agreements by credit providers 37 Part B 37 57. national record of 38 58. Register of marketing 39 59. Register of 39 60. Other registers to be kept by 40 61. Identity card of 41 CHAPTER 8 COMPLIANCE AND 41 MASTERMIND ALLIANCE ADAPTATION 3 Part A Registered credit providers compliance 41 62. Statutory 41 63. Compliance 42 64. Statistical 42 65. Annual Financial 42 66.

7 Annual Financial and Operational 43 67. Responsibility for Assurance 43 68. Assurance 43 Part B Debt counsellor compliance 43 69. Annual compliance report and statistical return by debt 43 Part C Credit bureau compliance 44 70. Annual compliance report by credit 44 71. Quarterly synoptic report by credit 44 Part D Insurers' Periodic Synoptic 45 72. Submission of periodic synoptic report by 45 CHAPTER 9 TRANSITIONAL 45 73. General preservation of regulations, rights, duties, notices and other 45 CHAPTER 10 PRESCRIBED 45 74.

8 45 75. Use of 45 76. Electronic submission of 46 SCHEDULE 1 PRESCRIBED 46 CHAPTER 1 INTERPRETATION AND APPLICATION OF ACT 1. Definitions In these regulations, any word or expression defined in the Act bears the same meaning as in the Act and accounting officer means a person appointed and fulfilling the duties and responsibilities set out in the Close Corporations Act, 69 of 1984; annual financial statements means the annual financial statements as required for each specific registrant in terms of applicable legislation.

9 Registrants who are not required by statute to submit annual financial statements must conform with the requirements as set out in the Close Corporations Act 69 of 1984 when required to submit such annual financial statements; auditor means a person appointed and fulfilling the duties and responsibilities as set out in the Companies Act, 61 of 1973; debt counselling means performing the functions contemplated in section 86 of the Act; debt counsellor means a person who is required to be registered in terms of section 44 of the Act to perform the service of debt counselling; MASTERMIND ALLIANCE ADAPTATION 4 delivered unless otherwise provided for, means sending a document by hand, by fax, by e-mail, or registered mail to an address chosen in the agreement by the proposed recipient, if no such address is available, the recipient s registered address.

10 Where notices or applications are required to be delivered to the national Consumer Tribunal, such delivery shall be done in terms of the Tribunal s rules. Where notices or applications are required to be delivered to the national Credit Regulator, such delivery shall be done by way of hand, fax, e-mail or registered mail to the registered address of the national Credit Regulator; general management or control when referring to juristic persons means the directors of a company registered in terms of the Companies Act 61 of 1973, the members of a close corporation, registered in terms of the Close Corporations Act 69 of 1984, for all other juristic persons, the individuals who perform a similar function(s) to the board of directors; Ministerial Notice means a notice published by the Minister in the Government Gazette, in terms of the Act or these Regulations.