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


National Credit Regulations, 2006

Chapter 4 : Consumer Credit Agreements

Part A : Pre-agreement disclosure

29. Pre-agreement statement and quotation for intermediate or large agreements


(1) The quotation given to the consumer in terms of section 92(2) of the Act must comply with the following requirements:
(a) the quotation must be in the format set out in Form 20.1, or may be in the format of Form 20 if the Credit Provider provides both small and intermediate credit agreements with similar features, or in any other form complying with (c) and (d) below;
(b) the quotation may be contained in the same document as the pre-agreement statement or in a separate document, provided that if the quotation is included in the same document as the pre-agreement statement, the quotation must be on the first page of that document;
(c) the quotation must be in a bordered text box and headed "Quotation";
(d) the information required to be disclosed in the quotation is:
(i) principal debt;
(ii) proposed distribution of principal debt with reference to items listed in section 102(1)(b) to (f) of the Act and specify any other;
(iii) other ongoing credit costs;
(iv) service fee and whether it is paid monthly, annually or on any other basis as prescribed in section 10(1)(c) of the Act;
(v) initiation fee;
(vi) rand value of interest;
(vii) residual or final amount payable (if any);
(viii) total cost of the proposed agreement;
(ix) annual interest rate;
(x) state the basis for any costs payable under section 121(3)(b)(i) of the Act, if applicable;
(xi) state the reasonable rental to be charged in terms of section 121(3)(b)(ii) of the Act if applicable;
(xii) Number of installments to be paid;
(xiii) Installment amount.


(2) For purposes of electronic or telephone originated quotation or pre-agreement statement for intermediate and large agreements, the electromagnetic recording and subsequent transcribing of the quote or pre-agreement statement will be sufficient, provided that the consumer is supplied with a copy of the quote or pre-agreement statement within a reasonable time.


(3) The following definitions will apply to Form 20.1, in respect of credit facilities:
(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 amount repayable per Part C must reflect the total of all instalments plus the fill repayment of the facility at the end of 12 months or at the end of the term of the agreement, whichever is the earliest.