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


National Credit Regulations, 2006

Chapter 3 : Consumer Credit Policy

Part C : Credit marketing practices

21. Required content for advertising practices


(1) If an advertisement refers only to the availability of credit, and no reference is made to costs, interest rate or monthly instalment, no further disclosure of cost of credit, interest rate or monthly repayment is required.


(2) If an advertisement discloses only the interest rate or the maximum and minimum rates where a range is applicable and no reference is made to other costs of credit, no further information has to be disclosed, but the advertisement must indicate that an initiation fee and service fee will be charged, if applicable.


(3) If an advertisement, other than an advertisement referred to in sub-regulation (2), discloses a monthly instalment, or any other cost of credit, the advertisement must also disclose the following:
(a) instalment amount;
(b) number of instalments;
(c) total amount of all instalments, including interest, fees and compulsory insurance;
(d) interest rate; and
(e) residual or final amount payable (if any)


(4) A statement of comparison of credit cost, as described in section 76(4)(d) of the Act, must contain all the information as set out in sub-regulation (3), for each alternative being compared.


(5) If an advertisement is for specific goods to be purchased on credit, services to be rendered on credit or a specific amount of credit obtainable and reference is made to repayment amounts or cost of credit, all the information as contained in sub-regulation (3) must also be disclosed.


(6) Any of the following statements or phrases, or any wording that has substantially the same meaning, may not form part of any advertisement or direct solicitation for credit—
(a) "no credit checks required";
(b) "blacklisted consumers welcome";
(c) "free credit".


(7) If any of the following qualitative statements to the cost of credit or any wording that has substantially the same meaning, is made,
(a) "cheap credit";
(b) "affordable credit";
(c) "low cost credit"

specific information must be disclosed on the cost of credit, as per sub-regulation (2) or sub-regulation (3).


(8) A direct solicitation may not contain the expressions "loan guaranteed", "pre-approved" or similar statements except when the credit granted is not subject to any credit assessment after acceptance by the consumer.