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

Chapter 1 : Interpretation, Purpose and Application of Act

Part B : Purpose and Application

5. Limited application of Act to incidental credit agreements


(1) Only the following provisions of this Act apply with respect to an incidental credit agreement:
(a) Chapters 1, 2, 7, 8 and 9;
(b) Chapter 3, sections 54 and 59;
(c) Chapter 4, Parts A and B;
(d) Chapter 4, Part D, except to the extent that it deals with reckless credit;
(e) Chapter 5, Part C, subject to subsection (3)(a);
(f) Chapter 5, Parts D and E, once the incidental credit agreement is deemed to have been made in terms of subsection (2); and
(g) Chapter 6, Parts A and C.


(2) The parties to an incidental credit agreement are deemed to have made that agreement on the date that is 20 business days after—
(a) the supplier of the goods or services that are the subject of that account, first charges a late payment fee or interest in respect of that account; or
(b) a pre-determined higher price for full settlement of the account first becomes applicable,

unless the consumer has fully paid the settlement value before that date.


(3) A person may only charge or recover a fee, charge or interest—
(a) in respect of a deferred amount under an incidental credit agreement as provided for in section 101(d), (f) and (g) subject to any maximum rates of interest or fees imposed in terms of section 105; or
(b) in respect of an unpaid amount contemplated in paragraph (a) of the definition of "incidental credit agreement" only if the credit provider has disclosed, and the consumer has accepted, the amount of such a fee, charge or interest, or the basis on which it may become payable, on or before the date on which the relevant goods or services were supplied.