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

Chapter 6 : Collection, Repayment, Surrender and Debt Enforcement

Part A : Collection and repayment practices

126A. Restrictions on certain practices relating to credit agreements

 

(1) A person must not promote, offer to supply, supply or induce any person to accept the supply of any service that has as its dominant function—
(a) the breaching of a credit agreement; or
(b) the unauthorised transfer of any right of a credit provider under a credit agreement to a third person.

 

(2) Subsection (1)(b) does not apply in respect of—
(a) any negotiation, by an attorney on behalf of a consumer, with the credit provider concerned; or
(b) any action carried out by, on behalf of or with the permission of the credit provider concerned.

 

(3) A person who offers to supply, or supplies, and service for the express or implied purpose of—
(a) improving a consumer's credit record, credit history or credit rating; or
(b) causing a credit bureau to remove credit information from its records concerning that consumer,

may not charge a consumer, or receive any payment from the consumer, for the credit repair service until that service has been fully performed, and must provide each consumer with a disclosure statement in the prescribed manner and form.

 

(4) Subsection (3) does not apply in respect of any credit repair service rendered by an attorney, or a registered credit bureau.

 

(5) A person who offers to supply, or supplies, or supplies—
(a) any service for the express or implied purpose of investigating fees, charges or interest charged on a credit agreement; or
(b) a computer software programme originating within the Republic, which is programmed to calculate fees, charges or interest charged on a credit agreement, for valuable consideration.

 

(6) This section does not apply to a debt counsellor in respect of any action authorised in terms of this Act.

 

[Section 126A inserted by item  A3 of Schedule 1 of Act No. 68 of 2008]