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National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 1 : Interpretation, Purpose and Application of Act

Part C : Classification and categories of credit agreements

11. Public interest credit agreements

 

(1) The Minister—
(a) by declaration in accordance with subsection (2); or
(b) by regulation in accordance with subsection (3),

may declare that credit agreements entered into in specified circumstances, or for specified purposes, during a specific period or until the declaration or regulation is repealed, are public interest credit agreements.

 

(2) The Minister, by notice in the Gazette, may make a declaration contemplated in subsection (1)(a)—
(a) in order to promote the availability of credit in all or part of the Republic in circumstances of natural disaster or similar emergent and grave public interest: and
(b) with or without prior notice or consultation, as the Minister may determine having regard to the circumstances.

 

(3) The Minister may make a regulation contemplated in subsection (1)(b)—
(a) in order to promote the availability of credit in all or part of the Republic in any circumstances that the Minister considers to be in the public interest; and
(b) in accordance with the provisions of section 171(2).

 

(4) When making a declaration or regulation contemplated in subsection (1) the Minister must prescribe the following criteria applicable to determining whether a credit agreement qualifies as a public interest credit agreement:
(a) The public interest circumstances in which credit may be granted or made available to a consumer;
(b) the maximum permissible principal debt;
(c) the maximum permissible duration of the credit agreement; and
(d) the area within the Republic in which the consumer under such an agreement must reside or carry on business.

 

(5) A public interest credit agreement is exempt from the application of Part D of Chapter 4 to the extent that it concerns reckless credit.