Acts Online
GT Shield

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


National Credit Regulations, 2006

Chapter 4 : Consumer Credit Agreements

Part A : Pre-agreement disclosure

28. Pre-agreement statement and quotation for small agreements


(1) The pre-agreement statement and quotation given to a consumer in terms of section 92 (1) of the Act must comply with the following requirements:
(a) The pre-agreement statement and quotation may be contained in one document or in two separate documents;
(b) The pre-agreement statement and quotation must be in the format set out in Form 20;
(c) For purposes of electronic or telephone originated pre-agreement statements and quotation for small agreements, the electromagnetic recording and transcribing of documents will be sufficient, provided that the consumer is supplied with copies of the documents within a reasonable time.


(2) If any section of the pre-agreement statement and quotation as prescribed in this section does not apply to the particular type of credit agreement, such section may be omitted from the statement.


(3) If any category of fee or charge that is provided for is not levied by the credit provider, or if no security, insurance or similar requirements are made by the credit provider, the sections dealing with such matters may be omitted.


(4) The following definitions will apply to Form 20, in respect of credit facilities that meet the criteria for small agreements:
(a) Credit advanced must reflect the total value of the credit facility;
(b) Instalment must reflect the minimum instalment required per the agreement, on the assumption that the total amount of the facility is utilized on the first day of the agreement; and
(c) Total of all instalments must reflect the total of all instalments plus the full repayment of the facility at the end of 12 months or at the end of the term of the agreement, whichever is the earliest.