Credit Terms and Conditions
IN TERMS OF SECTION 93 OF THE NATIONAL CREDIT ACT 34 OF 2005
1. SCHEDULE TO AGREEMENT
The schedule attached hereto, (“the Schedule”) setting out information regarding the goods and/or services purchased, the credit extended and the payment terms, is the Pre-agreement Statement and Quotation in terms of the National Credit Act No.34 of 2005 (NCA) and forms part of this agreement and must be read as such.
2. SALE AND AGREEMENT
2.1 The credit provider hereby sells to the consumer, who purchases the goods and or services, referred to in the Schedule.
2.2 The parties record that the transaction, which is the subject matter of this agreement, is an instalment agreement as defined in the NCA.
2.3 Possession of the goods and/or services shall be given to the consumer on signature of this agreement and against payment of the deposit (if any), referred to in the Schedule.
2.4 Ownership and title of the goods shall only pass to the consumer when all amounts owing by the consumer to the credit provider in terms of this agreement and the Schedule, have been paid in full.
2.5 The principal debt applicable to this agreement is the credit advanced by the credit provider to the consumer, being the total purchase price of the goods and/or services detailed in the schedule, minus the deposit (if any), plus any additional charges (if any), as detailed in the Schedule.
2.6 Payment of the deposit (if any), the instalments and any other charges due by the consumer to the credit provider, shall be paid at the address of the credit provider, as detailed on the Schedule, or such other address as the credit provider may specify in writing.
3. PAYMENT OF INSTALMENTS
3.1 The principal debt together with interest thereon, as provided for in this agreement and the Schedule and all other charges payable by the consumer to the credit provider in terms of this agreement, shall be paid by the consumer to the credit provider by way of the monthly instalments referred to in the Schedule, which monthly instalments shall fall due on the first business day of each month.
3.2 The consumer shall not be entitled to withhold payment of any instalments or other amounts owing to the credit provider for any reason whatsoever. The consumer will not be entitled to set off against any instalments or other amounts payable in terms hereof, any present or future claim, which the consumer may have against the credit provider, for any cause whatsoever.
4. PRE-PAYMENT OR EARLY SETTLEMENT
4.1 The consumer is entitled to pre-pay or settle this agreement at any time, either with or without notice to the credit provider, without any penalty.
4.2 The amount, which is required to settle this agreement (settlement amount) is the total of the unpaid balance of the principal debt at the time and the unpaid interest charges and all other fees and charges payable by the consumer to the credit provider up to the settlement date.
5.1 The principal debt shall bear interest at the rate specified in the Schedule.
5.2 Interest shall be reckoned from the date, on which this agreement is signed and shall be calculated on the daily balance owing by the consumer to the credit provider. The sum of the interest, calculated daily, may be added to the outstanding amount of the principal debt and other amounts payable to the credit provider only once in the month to which it refers, at the end of that month.
5.3 In the event that the consumer fails to pay any instalment or any other amount due, on due date, such overdue amounts shall bear penalty interest at the interest rate specified in the Schedule.
6.1 The consumer shall maintain credit life insurance, with an approved insurer to cover the full outstanding obligations of the consumer to the credit provider for the full term of this agreement.
6.2 The consumer shall maintain insurance cover against theft, loss or damage of the goods purchased in terms of this agreement to the extent of the full outstanding obligations of the consumer to the credit provider in terms of this agreement.
6.3 The credit provider may offer to the consumer optional insurance cover relating to the consumer’s possession, use, ownership or benefits of the goods and/or services supplied in terms of this agreement.
6.4 The consumer has the right to waive any insurance policy proposed by the credit provider and to substitute a policy of the consumer’s own choice, provided that the credit provider may require the consumer to provide the credit provider with a written direction:
(a) requiring and permitting the credit provider to pay any premiums due under that policy during the term of the credit agreement on behalf of the consumer as they fall due and to debit the consumer for the amount of such premiums on a monthly basis;
(b) naming the credit provider as a loss payee under the policy, up to the settlement value at the happening of an insured event and requiring the insurer, if an insured event occurs, to settle the consumer’s obligations under this credit agreement as a first charge against the proceeds of the policy at any time during the term of this agreement.
6.5 Insurance premiums in respect of this agreement are payable by the consumer monthly in advance.
7. STATEMENTS OF ACCOUNT
7.1 The credit provider shall deliver a statement of account to the credit receiver in the format prescribed in the NCA, communicated and delivered as agreed between the parties.
7.2 Such statements shall be delivered at regular intervals, not exceeding three months, as agreed by both parties to this agreement.
7.3 The consumer shall be entitled to dispute all or part of any particular credit or debit in a statement of account by delivering a written notice to the credit provider.
8. CREDIT PROVIDER’S RIGHT TO TERMINATE AND/OR ENFORCE THIS AGREEMENT, DEFAULT PROCEDURE AND COLLECTION COSTS
8.1 If the consumer defaults in any payment obligation under this agreement, the credit provider may draw the default to the attention of the consumer in writing and advise the consumer of his/her right to consult with a debt counsellor or alternative dispute resolution agent or ombud with the intent of resolving any dispute under the credit agreement, being declared overindebted in terms of Section 86 of the NCA, or developing a plan to bring the payments up to date.
8.2 If at least ten business days have elapsed since the credit provider delivered a notice in writing, as set out in 8.1 above, the consumer has not responded to that notice or has rejected it, then, subject to meeting the requirements set out in Section 130 of the NCA, the credit provider may approach the court for an order to enforce this agreement.
8.3 The credit provider may levy default administration charges in respect of each letter necessarily written to the consumer in terms of the NCA. Such charges will be equal to the charges payable in respect of a registered letter of demand in an undefended action in terms of the Magistrate’s Court Act together with necessary expenses incurred in delivering the letter.
8.4 The credit provider may charge the consumer all collection costs incurred in collecting any amounts due and payable by the consumer in terms of this agreement -
(a) as contemplated in Part C of Chapter 6 of the NCA
(b) in terms of:
i) the Supreme Court Act, 1959 and the rules of that Act
(ii) the Magistrates’ Courts Act, 1944
(iii) the Attorneys’ Act, 1979
(iv) the Debt Collectors’ Act 1998 as the case may be.
9. CONSUMER’S RIGHT TO RESCIND THE AGREEMENT
9.1 In the event that this agreement was concluded at any place other than the registered business premises of the credit provider, the consumer shall be entitled to terminate this agreement within five business days of the date on which this agreement was signed by the consumer by: -
(a) delivering a notice in the prescribed manner to the credit provider and
(b) tendering the return of any money or goods or paying in full for any services received by the consumer in respect of this agreement.
9.2 In the event that this agreement is terminated in terms of 9.1, the credit provider: -
(a) must refund any money the consumer has paid under this agreement within seven business days after the delivery of the notice to terminate and
(b) may require payment from the consumer for: -
(i) the reasonable cost of having any goods returned to the credit provider and restored to the original saleable condition and
(ii) a reasonable rent for the use of those goods for the time that the goods were in the consumer’s possession, unless those goods are in the unopened original packaging and it is apparent that they have remained unused.
10. SURRENDER OF GOODS
10.1 The consumer may give written notice to the credit provider to terminate this agreement and: -
(a) if the goods are in the credit provider’s possession, require the credit provider to sell the goods, or
(b) otherwise return the goods to the credit provider’s place of business during ordinary business hours within five business days after the date of the notice or within such other period or at such other time or place as may be agreed with the credit provider.
10.2 Within ten business days after the latter of either receiving a notice in terms of clause10.1 (a) or receiving the goods in terms of clause 10.1(b), the credit provider shall give the consumer written notice setting out the estimated value of the goods and any other prescribed information.
10.3 Within ten business days after receiving a notice under clause 10.2, the consumer may unconditionally withdraw the notice to terminate this agreement, given in terms of clause 10.1 in writing and resume possession of the goods, if the goods are in the credit provider’s possession, unless the consumer is in default under this agreement.
10.4 If the consumer responds to a notice as contemplated in clause 10.3, the credit provider shall return the goods to the consumer unless the consumer is in default under this agreement.
10.5 If the consumer does not respond to a notice as contemplated in 10.3, the credit provider shall sell the goods as soon as practicable for the best price obtainable.
10.6 After selling any goods in terms of this clause 10, the credit provider shall: -
(a) debit or credit the consumer’s account with a payment or charge equivalent to the proceeds of the sale, less any expenses reasonably incurred by the credit provider in connection with the sale of the goods and
(b) give the consumer a written notice stating: -
(i) the settlement value of the agreement immediately before the sale
(ii) the gross amount realised on the sale
(iii) the net proceeds of the sale after deducting the credit provider’s permitted default charges (if applicable) and reasonable costs allowed under clause 10.6(a)
(iv) the amount credited or debited to the consumer’s account.
10.7 If an amount is credited to the consumer’s account and it exceeds the settlement amount immediately before the sale, the credit provider shall remit the amount by which it exceeds the settlement amount to the consumer with the notice required under clause 10.6(b) and the agreement shall be terminated on remittance of that amount.
10.8 If an amount is credited to the consumer’s account and it is less than the settlement amount immediately before the sale or an amount is debited to the consumer’s account, the credit provider may demand payment from the consumer of the remaining settlement value when issuing the notice in terms of clause 10.6(b).
10.9 If the consumer fails to pay an amount demanded in terms of clause 10.8within ten business days of receiving a demand notice, the credit provider may commence proceedings in terms of the Magistrates’ Courts Act, 1944, for a judgement enforcing the credit agreement.
10.10 If the consumer, having received a demand notice, pays the amount demanded at any time before judgement is obtained in terms of clause 10.9, this agreement shall be terminated upon payment of that amount.
10.11 In either event contemplated in clauses 10.9 and 10.10, interest shall be payable by the consumer at the rate applicable to this agreement on any outstanding amount demanded by the credit provider in terms of clause 10.8 from the date of the demand until the date that the outstanding amount is paid.
11. OBLIGATION TO DISCLOSE LOCATION OF GOODS
11.1 Until the termination of this agreement for whatever reason, the consumershall be obliged to inform the credit provider in the prescribed time, manner and form of any change concerning: -
(a) the consumer’s residential or business address and
(b) the address of the premises, in which the goods are ordinarily kept and
(c) the name and address of any other person to whom possession of the goods has been transferred.
11.2 The consumer shall advise the credit provider of the name and address of any landlord of any premises where the goods are kept from time to time and shall notify each such landlord, in writing, of the credit provider’s ownership of the goods. The credit provider shall be entitled to itself notify such landlord of the ownership of the goods.
11.3 If the consumer fails to comply with this clause, he/she shall be guilty of an offence.
12. CESSION AND ASSIGNMENT
12.1 The consumer shall not cede, assign or transfer any of the rights or obligations in terms of this agreement without prior written consent of the credit provider.
12.2 The credit provider shall be entitled, subject to the NCA, to cede assign and/or transfer its rights and obligations under this agreement and its ownership of the goods. The consumer agrees that upon such cession, assignment or transfer, he/she shall hold the goods on the basis that the ownership in the goods has passed to the cessionary, assignee or transferee.
13. ADDRESSES FOR RECEIVING OF DOCUMENTS
13.1 The addresses listed in the agreement for both parties, shall be the addresses at which the parties will accept documents, pleadings and notices relating to the agreement.
13.2 Either party to this agreement may change their address by delivering to the other party a written notice of the new address by hand, registered mail or electronic mail.
14. CREDIT INFORMATION
14.1 In terms of Section 81 of the NCA the credit provider is obligated to take all reasonable steps to prevent the extension of reckless credit. The consumer therefore authorises the credit provider, as follows, with regard to the consumer’s personal credit information, notwithstanding the confidentiality of such information: -
(a) to enquire regarding the consumer’s credit profile and repayment behaviour from any credit bureau, credit register or other credit provider.
(b) to supply or submit information regarding the consumer’s credit profile or repayment behaviour to any credit bureau, credit register or other credit provider. The credit bureaus may provide a credit profile or credit score regarding the credit worthiness of the credit receiver to other credit providers from whom the credit receiver applies for credit.
(c) to retain records of the consumer’s personal and credit information in any data base in accordance with the provisions of the NCA.
14.2 The credit provider shall provide names and contact details of credit bureaus to which information has been supplied, on request from the credit receiver.
15. USE OF GOODS
15.1 The consumer shall at all times keep the goods in his possession and control and shall take reasonable care in the use of the goods and shall at his/her own cost and expense, maintain the goods in proper order and protect them against loss or damage. The consumer shall furthermore, at his/her own expense, keep the goods free from attachment, hypothec or other legal charge or process and shall not, without the prior written consent of the credit provider, sell, let, lend, pledge, transfer or otherwise encumber the goods in any way or permit any lien to arise in respect of the goods.
15.2 The consumer shall not materially alter or modify the goods without the prior written consent of the credit provider. Any part or accessory added to and/or attached to the goods shall become the credit provider’s property without any compensation, until the consumer’s obligations, in respect of this agreement, have been settled in full.
15.3 The consumer acknowledges and agrees that the goods are movable property and shall remain so, notwithstanding the means used to install them and the goods shall not under any circumstances accede to the property where they are installed or kept.
16.1 The consumer confirms that this agreement is in the official language, which he/she understands and which he/she requested.
16.2 The consumer confirms and acknowledges that the terms and conditions of this agreement, including the Schedule and his/her obligations there under, have been explained to him/her and that he/she understands them in full and agrees to them.
16.3 References in this agreement to the singular shall include the plural and vice versa and references to the masculine gender shall include the feminine and neuter genders and vice versa.
16.4 This agreement, including and consisting of the Schedule, the terms and conditions of the agreement, the declaration of income, expenses and financial obligations by the consumer, the affordability assessment, the credit application and the suretyship, (if applicable), constitutes the entire agreement between the parties and shall not be capable of being altered or amended unless such alteration or amendment is signed by the consumer and an authorised representative of the credit provider.
16.5 The consumer has the right to: -
(a) resolve a complaint by way of alternative dispute resolution
(b) file a complaint with the National Credit Regulator, telephone number 0860 627 627
(c) make an application to the National Consumer Tribunal.
17. CREDIT MARKETING OPTIONS
In terms of Section 74(6) of the NCA the consumer may accept or decline to be included in the following credit marketing campaigns or practices: -
17.1 Credit telemarketing campaigns that may be conducted by or on behalf of the credit provider.
17.2 Credit marketing messages by e-mail, SMS or other electronic media.
17.3 Marketing or customer lists that may be sold or distributed by the credit provider, other than as required by the NCA.
18. DEBIT ORDER
When making payments with a debit order you authorise the credit provider to debit your bank account or any other bank account that is provided by you on the agreed date with the agreed instalment.
If, however this date of payment falls on a weekend or public holiday, the debit order will be processed on the business day before the weekend or public holiday. We reserve the right to debit your account earlier in December provided we give you prior notice.