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

Chapter 3 : Consumer Credit Industry Regulation

Part A : Registration requirements, criteria and procedures

40. Registration of credit providers


(1) A person must apply to be registered as a credit provider if the total principal debt owed to that credit provider under all outstanding credit agreements, other than incidental credit agreements, exceeds the threshold prescribed in terms of section 42(1).

[Subsection (1) substituted by section 10 of Act No. 19 of 2014]


(2) In determining whether a person is required to register as a credit provider—
(a) the provisions of subsection (1) apply to the total number and aggregate principal debt of credit agreements in respect of which that person, or any associated person, is the credit provider;
(b) each associated person that is a credit provider in its own name and falls within the requirements of subsection (1) must apply for registration in its own name;
(c) a credit provider that conducts business in its own name at or from more than one location or premises is required to register only once with respect to all of such locations or premises; and
(d) "associated person"—
(i) with respect to a credit provider who is a natural person, includes the credit provider’s spouse or business partners; and
(ii) with respect to a credit provider that is a juristic person, includes—
(aa) any person that directly or indirectly has a controlling interest in the credit provider, or is directly or indirectly controlled by the credit provider;
(bb) any person that has a direct or indirect controlling interest in, or is directly or indirectly controlled by, a person contemplated in clause (aa); or
(cc) any credit provider that is a joint venture partner of a person contemplated in this subparagraph.


(3) A person who is required in terms of subsection (1) to be registered as a credit provider, but who is not so registered, must not offer, make available or extend credit, enter into a credit agreement or agree to do any of those things.


(4) A credit agreement entered into by a credit provider who is required to be registered in terms of subsection (1) but who is not so registered is an unlawful agreement and void to the extent provided for in section 89.


(5) A person to whom this section does not apply in terms of section 39, or who is not required to be registered as a credit provider in terms of this section, may voluntarily apply to the National Credit Regulator at any time to be registered as a credit provider.


(6) When determining whether, in terms of subsection (1), a credit provider is required to register—
(a) the value of any credit facility issued by that credit provider is the credit limit under that credit facility; and
(b) any credit guarantee to which a credit provider is a party is to be disregarded.