National Credit Amendment Act

This section amends section 1 of the National Credit Act by changing several definitions, including “code of conduct,” “mortgage,” and “mortgage agreement.”

This section amends the National Credit Act, 2005 by deleting some definitions and replacing or adding several others.

This section amends Section 17 to require the National Credit Regulator to act, including notifying the Registrar of Banks within the agreed time frame before investigating a bank.

Sections 19, 20, 21 and 22 of the principal Act are repealed.

The Minister must appoint a suitably qualified and experienced person as Chief Executive Officer of the National Credit Regulator.

This section amends section 17 so the National Credit Regulator must, among other things, notify the Secretary of Banks within the agreed time for a bank investigation.

Sections 19, 20, 21 and 22 are repealed, and section 23 of Act 34 of 2005 is amended.

The Chief Executive Officer is the accounting authority for the National Credit Regulator and may delegate some functions; the Minister may appoint a suitably qualified Deputy Chief Executive Officer.

The wording is amended to refer to the Chief Executive Officer or an employee duly authorised by the Chief Executive Officer.

This section amends the Tribunal appointment rules and adds disqualification rules, plus powers for the Chief Executive and Minister.

This section amends section 25 and section 26 of the cited law.

This section tightens Tribunal member eligibility, requires written disclosure of interests to the Minister, and restricts members from taking part in conflicted matters or using confidential information improperly.

Tribunal members must disclose relevant benefits, step back from related matters, and keep Tribunal information confidential.

This section amends section 29 of the principal Act by adding a rule that a Chairperson or other Tribunal member must be removed from office if they are no longer fit as stated in the referenced sections.

If a Tribunal member participating in a hearing thinks the matter concerns that member’s financial or other interest under section 26(5)(b), the member must do something further, but the excerpt cuts off before the requirement is stated.

The Minister may, after consulting the Minister of Finance, set remuneration and employment terms for Tribunal members. A member’s salary, allowances, or benefits cannot be reduced during the member’s term of office.

A person must apply to be registered as a credit provider when the stated agreement or debt threshold is met.

The Minister must set a threshold by notice in the Gazette for deciding when a credit provider must register.

A person may apply to the National Credit Regulator to register as a payment distribution agent, but may not offer those services unless registered. Consumers are not required to use such a service.

This provision amends section 32 by replacing the introductory words of subsection (2), and it refers to a change to section 34 of Act 34 of 2005.

The Minister may decide the pay, allowances, benefits, and other employment conditions for members of the Court, after consulting the Minister of Finance.

A person must apply to be registered as a credit provider when the stated credit activity or debt threshold is met.

The Minister must, by notice in the Gazette, set an amount of at least R500,000 for deciding whether a credit provider must be registered, and must do so within a determined date and no later than five years.

People may apply to register as payment distribution agents, but unregistered people must not carry on that activity or present themselves as authorised. Registered agents must keep fidelity insurance and trust accounts and provide financial accounts when reasonably required by the National Credit Regulator.

The National Credit Regulator must register an applicant who meets the Act’s registration criteria, unless disqualifying grounds are found after the required test. The Minister may set criteria for the test, registration, registrant duties, and fees.

A natural person cannot be registered as a credit provider, debt counsellor, or payment distribution agent if that person is an unrehabilitated insolvent.

The National Credit Regulator must apply additional criteria to an application if the person qualifies to be registered as a credit provider.

This section amends section 45 to require the National Credit Regulator to register an applicant who meets the Act’s requirements, unless prescribed integrity or other checks, or an investigation, show the applicant is not fit to register.

A person may not register as a credit provider, debt counsellor, or debt collector if a court has declared that person insolvent.

The Minister may prescribe criteria and measures for deciding affordability assessments under this section.

The Minister can prescribe a code of conduct only after the National Credit Regulator completes consultation and comment steps. The Regulator must monitor code effectiveness, may require information for that purpose, and registrants must not breach an applicable code in ordinary business.

This section amends section 49 of the principal Act by changing the wording of subsection (1) and adding a new paragraph.

This section amends section 51 so that applicants, or people accompanying them, may have obligations tied to debt-combating measures and prescribed conduct rules, and the Minister may set the procedure and measures for deciding the affordability assessment outcome.

The Minister may determine a code of conduct only after the National Credit Regulator has completed the listed consultation and review steps. The Regulator must monitor the code, may ask industry participants for relevant information, and the secretary must not breach the applicable code in ordinary business.

This provision amends section 49 and introduces a new paragraph allowing action where the National Credit Regulator considers it necessary, for compelling reasons, to achieve the Act’s purposes and perform its functions.

Section 51 is amended to require the National Credit Regulator to impose a penalty for late renewal of registration on a registrant who does not pay prescribed renewal fees within 30 days after they become payable.

The amended rule says a registration stays in force until the registrant is deregistered, the registration is cancelled under the Act, or it lapses when the renewal fee was not paid on time.

A registrant or credit provider who asks to cancel registration must file specified notices, affidavits, certificates, and proof of notification with the National Credit Regulator.

Section 71 is amended to allow a late renewal fee to be charged by the National Credit Regulator where a registrant did not pay the prescribed renewal fee within 30 days of its due date.

The amendment says the registration keeps operating until the person is registered, the registration is withdrawn, or the renewal-fee deadline passes.

A person applying to cancel registration must send prescribed notice and affidavits to the National Credit Regulator, attach proof that affected customers and related providers were notified, and include the registration certificate. A cancelled registrant must also file an affidavit about customer transfer. A credit provider seeking cancellation must send a cancellation notice with its certificate and an affidavit confirming the relevant registration has been cancelled.

Debt counsellors must issue clearance certificates and file them within seven days; consumers can seek Tribunal review or file a copy with the National Credit Regulator if the counsellor does not file it.

Credit providers must report settlement information to registered credit bureaux within 7 days, and credit bureaux must remove covered adverse listings within 7 days after receiving that information.

A credit provider must send settlement information to all credit bureaus within 7 days, and the credit bureau must remove the related adverse listing within 7 days of receiving it.

The Minister may, at any time, prescribe rules about how consumer credit information is reviewed, verified, corrected or removed, how a registered auditor confirms that, and the timing and schedule for consumers to exercise section 72(1) rights.

A credit provider may choose its assessment methods, but they must produce a fair, objective assessment and comply with affordability assessment regulations. The Minister must make those regulations on the National Credit Regulator’s recommendation.

This section amends section 83 of the principal Act and changes the heading and wording about when a court or Tribunal may declare a credit agreement reckless.

The Minister may determine how credit information held by a credit bureau is reviewed, processed, corrected, or removed, how a registered auditor confirms that a customer’s credit information has been updated, and how customers exercise their section 72 rights.

This section amends section 82 to let a credit provider choose assessment methods for section 81 obligations, if the process is fair, proper, and consistent with the Minister’s credit principles.

A court or Tribunal may declare a credit agreement reckless and make orders under the section, and must consider whether the consumer is over-indebted before making an order.

This section changes debt review rules: a credit provider may terminate review notice after 60 business days in default cases, but not if the review application is already in court or the Tribunal.

This section amends section 89 so that, before making certain orders, the court or tribunal must consider whether the customer is over-indebted during the proceedings.

This amendment changes when a credit review can be suspended and when a court may order it to continue.

This section amends section 89 so that, when a credit agreement is unlawful under the section, a court must make a just and equitable order.

Credit providers must not use false pretences or fraud to get consumers to sign credit agreements or supplementary documents containing unlawful provisions.

A person who contravenes this section commits an offence.

The Minister may, after consulting the Minister of Finance, set a limit on the cost of credit insurance that a credit provider may charge a consumer.

No person may sell, collect, or reactivate a debt under a credit agreement if the debt has been extinguished by prescription, including cases where the consumer raises the defence of prescription.

This section amends section 129 of the principal Act and replaces subsection (3), stating that a consumer may act before a stated time limit, subject to subsection (4).

A credit provider must not induce a customer to make or sign a credit agreement, related agreement, or document containing an unlawful condition.

This provision amends section 100 by adding that a person who contravenes the section is guilty of an offence.

The Minister may set a maximum amount for credit insurance that can be charged to a customer, after consulting the Minister of Finance.

A person must not sell, collect, or revive certain debt if it has been extinguished under the Prescription Act, 1969.

This section changes the rules for notices and delivery under section 129, and limits when a credit provider may restore or revive a credit agreement.

Section 130 is amended so that paragraph (a) now requires at least 10 business days to have passed after the credit provider gives notice to the consumer.

A person may refer a matter or dispute about an alleged reckless credit agreement instead of filing a complaint with the National Credit Regulator.

This section inserts new provisions on the registration and accreditation of alternative dispute resolution agents.

The National Credit Regulator must register and accredit alternative dispute resolution agents. The Tribunal may cancel that registration and accreditation on application by the National Credit Regulator if an agent breaches a registration condition or contravenes the Act, subject to subsection (2).

This amendment replaces part of section 130 so that at least 10 business days must pass after the credit provider sends notice to the customer before the referenced step can occur.

This provision amends section 134 so that a person may refer a matter or dispute about an alleged reckless credit agreement to the National Credit Regulator as an alternative to lodging a complaint under section 136.

This section says the following section is inserted after section 134 and appears to concern registration and authorisation of certain persons or bodies, but the text is incomplete.

The National Credit Regulator must register and accredit alternative dispute resolution agents, and cancelled agents must stop their formerly registered activities.

Any person may submit certain complaints to the National Credit Regulator in the prescribed manner and form.

This section requires certain credit-sector entities to train their employees or agents, and it gives the Minister power to set training requirements and standards.

Anyone may submit a complaint to the National Credit Regulator, in the prescribed manner, about an alleged violation of the Act or an alleged reckless credit agreement.

Debt counsellors may use agents only for administrative debt-review tasks, providers must ensure staff or agents are trained, the Minister must set training standards, and certain fees or commissions must be disclosed in writing if the agreement is concluded.

The laws listed in the Schedule are amended to the extent set out in that Schedule.

The Act starts on a date chosen by the President by proclamation in the Gazette.

The rules listed in the Schedule are amended as set out in that Schedule.

This section says the Act is called the National Credit Amendment Act, 2014, and it starts when the President proclaims it in the Gazette.

This provision says the Insolvency Act is amended by inserting a new section after section 8.

A debtor who has applied for debt review must not be treated as having committed an act of insolvency.

Any person may file a complaint with the Commission, using the prescribed manner and form, about a matter covered by section 69 and alleging conduct inconsistent with the Act.

This section says the Insolvency Act is amended by inserting a new section after section 8.

A person who applies for review of a debt must not be treated as having failed to pay debts.

Anyone may lodge a complaint with the Commission in the prescribed manner about certain matters, alleging non-compliance with the Act.