| (1) |
It is lawful for a consumer to provide, a credit provider to request or a credit agreement to include an authorisation to the credit provider to make a charge or series of charges contemplated in section 90(2)(n), if such authorisation meets all the following conditions— |
| (a) |
the charge or series of charges may be made only against an asset, account, or amount that has been— |
| (i) |
deposited by or for the benefit of the consumer and held by that credit provider or that third party; and |
| (ii) |
specifically named by the consumer in the authorisation; |
| (b) |
the charge or series of charges may be made only to satisfy— |
| (i) |
a single obligation under the credit agreement; or |
| (ii) |
a series of recurring obligations under the credit agreement, |
specifically set out in the authorisation;
| (c) |
the charge or series of charges may be made only for an amount that is— |
| (i) |
calculated by reference to the obligation it is intended to satisfy under the credit agreement, and |
| (ii) |
specifically set out in the authorisation; |
| (d) |
the charge or series of charges may be made only on or after a specified date, or series of specified dates— |
| (i) |
corresponding to the date on which an obligation arises, or the dates on which a series of recurring obligations arise, under the credit agreement; and |
| (ii) |
specifically set out in the authorisation; and |
| (e) |
any authorisation not given in writing, must be recorded electromagnetically and subsequently reduced to writing. |
| (2) |
Before making a single charge, or the initial charge of a series of charges, to be made under a particular authorisation, the credit provider must give the consumer notice in the prescribed manner and form, setting out the particulars as required by this subsection, of the charge or charges to be made under that authorisation. |
| (3) |
If there is a conflict between a provision of this section and a provision of the National Payment Systems Act, 1998 (Act No. 78 of 1998), the provisions of that Act prevail. |
Stamp Duties Act, 1968 (Act 77 of 1968)
