Requirements for registering as a credit provider as per Section 40, 41, and regulation 4 of the National Credit Amendment Act, 19 of 2014:
- A person must apply for registration as a credit provider if that person is-
- The party who supplies goods or services under a discount transaction or instalment sale agreement;
- The party who advances money or credit under a pawn transaction;
- The party who extends credit under a credit facility;
- The mortgagee under a mortgage agreement;
- The lender under a secured loan;
- The lessor under a lease;
- The party to whom an assurance or promise is made under a credit guarantee;
- The party who advances money or credit to another under any other credit agreement; or
- Any other person who acquires the rights of a credit provider under a credit agreement after it has been entered into.
- A juristic person or a natural person may apply for registration as a credit provider.
- A person who is required 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.
Although basic registration of credit providers is under this Act -
- The Regulator may impose conditions to address matters relating to the purpose of the Act generally;
- The Regulator will further consider the application relating to BBBEE and combating over-indebtedness concerns specifically; and
- A credit provider who intends to enter into developmental credit agreements must apply for supplementary registration, and satisfy the requirements for such registration.
- For further information, refer to the relevant sections of the Act