Terms & Conditions
- Definitions and Interpretations
- In this Agreement, the headings are used for reference purposes only and not for the purpose of interpretation;
- The following words and expressions shall, in this Agreement have the meaning set out opposite and/or below them;
1.2.1 Annual Interest Rate means the rate at which finance charges are levied on any overdue balance of the principal debt owed by the Consumer to the Credit Provider expressed as a percentage as specified on the face of this Agreement and which shall be a variable nominal annual rate compounded monthly linked to the maximum rate as prescribed by the Act with reference to Section 105(1);
1.2.2 Initiation Fee means the fee charged by the Credit Provider to cover the costs of initiating this Agreement;
1.2.3 Maximum Prescribed Interest Rate means the interest rate as set out in the Regulations to the Act with reference to the Repo Rate which currently stands at 6.75%;
1.2.4 Party means the Credit Provider or Consumer as described on the face of this Agreement;
1.2.5 Service Fee means the Fee charged by the Credit Provider to cover the costs for routine administration and maintaining of the Consumer’s account;
1.2.6 The Act means the National Credit Act No 34 of 2005;
- This Agreement shall be binding on the Consumer from the date of his/her signature hereto.
- Acknowledgment and Fundamental Basis of the Agreement
- The Consumer acknowledges, represents and warrants, that the information and financial statements in respect of himself/herself supplied to the Credit Provider during the negotiations which led to the conclusion of this Agreement are correct and true in every respect.
- If any dispute arises between the Parties, the Consumer shall, pending the settlement or determination of such dispute, proceed to pay all instalments and other amounts payable in terms hereof on the due date as set out in this Agreement.
- The Consumer declares that no benefits have been offered, given or proposed by the Credit Provider either directly or indirectly prior to the signing of this Agreement as an incentive to enter into this Agreement and warrant that the initiative in respect of this transaction and signing of the Agreement originated from himself/herself.
- Statement of Account
- The Credit Provider will deliver to the Consumer monthly, computer printed, statements of account which statements will be delivered on or before the last day of each month by post or e-mail.
- The Credit Provider will provide the statement to the Consumer in the matter which is normally used by the Credit Provider.
- Payment of any goods purchased by the Consumer from the Credit Provider shall be settled in six (6) equal consecutive monthly instalments as from the last accounting day of the month during which the goods are purchased.
- Interests, Credit Fees and Charges
- The Credit Provider may at its sole discretion levy a once off initiation fee not to exceed R150.00 (one hundred and fifty rand) plus VAT, upon the granting of the credit facility.
- The Credit Provider shall be entitled at its sole discretion to levy a service fee on active accounts up to a maximum of R50.00 (fifty rand) per month plus VAT or such other fee as may be permitted in terms of the Act.
- The Credit Provider shall charge interest on any overdue amount owing at a rate of 2.00% per month or such other amount as the Credit Provider may notify the Consumer of in writing from time to time.
- The Credit Provider will not unilaterally increase the periodic or incidental service fee nor change the method of calculating the fees that may be changed under this Agreement or the rate of interest applicable to this Agreement.
- The Credit Provider will give written notice of at least five (5) business days to the Consumer setting out the particulars of any change concerning:
4.5.1 the rate of interest;
4.5.2 the amount of credit fee or charge;
4.5.3 the change in the frequency or time for payment of a credit fee or charge in terms of this Agreement.
- Early Payments and Crediting of Payments
- The Consumer may pre-pay any amount owed to the Credit Provider under this Agreement at any time, without notice or penalty.
- The Credit Provider must accept any payment under this Agreement when it is tendered even if that is before the date on which the payment is due.
- The Credit Provider must credit each payment made under this Agreement to the Consumer as of the date of receipt of the payment, as follows:
5.3.1 firstly, to satisfy any due or unpaid interest charges;
5.3.2 secondly, to satisfy any due or unpaid fees or charges;
5.3.3 finally, to reduce the amount of the principal debt.
- The Consumer’s Right to Settle Agreement
- The Consumer is entitled to settle the total amount owing on the credit facility at any time with or without a month’s notice to the Credit Provider.
- The amount required to settle the amount due in terms of the credit facility is the total of the following amounts:
6.2.1 the unpaid balance of the principal debt at the time;
6.2.2 the unpaid interest charges and/or other fees and charges payable by the
Consumer to the Credit Provider up to the settlement date.
- Termination of the Agreement by the Consumer
The Consumer may terminate this Agreement at any time by paying the settlement amount to the Credit Provider and notifying the Credit Provider of his intention in writing to terminate the credit facility.
- Termination of the Agreement by the Credit Provider
- The Credit Provider may terminate this Agreement before the time provided for in the Agreement only in accordance with Section 123 of the Act.
- If the Consumer is in default under the Agreement, the Credit Provider may take the steps for debt enforcement by Judgment to enforce and terminate the Agreement.
- Application for Debt Review
- The Consumer may apply to a Debt Councillor in the prescribed manner and form to have him/her declared over indebted.
- The abovementioned application may not be made in respect of any and does not apply to the Agreement if, at the time of the application, the Credit Provider under this Agreement has proceeded to take steps contemplated in Section 129 of the Act to enforce the Agreement.
- The Consumer and the Credit Provider must:
- comply with any reasonable request by the Debt Councillor to facilitate the evaluation of the Consumer’s state of indebtedness and the prospects for responsible debt rearrangements;
- participate in good faith in the review and in any negotiations designed to result in responsible debt rearrangements.
- If the Consumer is in default under this Agreement, the Credit provider may draw the Default to the notice of the Consumer in writing and propose that the Consumer refer this Agreement to a Debt Councillor, alternative Dispute Resolution Agent, Consumer Court or Ombud with jurisdiction with the intent that the parties resolve any dispute under the Agreement or develop and agree to a plan to bring the arrear payments under this Agreement up to date.
- The Credit Provider may not commence any legal proceedings to enforce the Agreement before:
- first delivering the notice referred to above to the Consumer in terms of Section 129 of the Act;
- meeting any further requirements as set out in the Act for debt procedures in a Court;
- The abovementioned provisions will not be applicable if this Agreement is subject to a Debt Restructuring Order or to proceedings in a Court that could result in such an Order.
- The Credit Provider may approach the Court for an Order to enforce the Agreement only if, at the time, the Consumer is in default and has been in default under this Agreement for at least twenty (20) business days and at least ten (10) business days have lapsed since the Credit Provider delivered the notice referred to above as required in terms of Section 129 of the Act.
- If the Consumer’s account falls into arrears:
- the Consumer will be charged with costs relating to debt collection activities including a charge for any correspondence and telephone calls made to the Consumer each month that the account remains in arrears;
10.1.2 default information will be submitted to the relevant Credit Bureaus; and
- Certificate of Indebtedness and Valuation
A certificate signed by any of the Credit Provider’s Managers (whose appointment and authority need not be approved) in which the amount of indebtedness by the Consumer and the interest rate applicable to the Consumer’s account is stated, shall be accepted as sufficient proof of
indebtedness to the Credit Provider in any legal proceedings and shall be regarded as correct.
- Default Administration Charges
12.1 The Credit Provider may require payment by the Consumer of Default Administration Charges in respect of each necessary letter written to the Consumer for debt enforcement by way of Judgment against the Consumer.
12.2 The amount payable may not exceed the amount payable in respect of a registered letter of demand in undefended actions in terms of the Magistrate’s Court Act 32 of 1944 in addition to any reasonable and necessary expenses incurred to deliver such a letter to the Consumer.
- Collection Costs
13.1 The Collection Costs may not exceed the costs incurred by the Credit Provider in collecting the debt for debt enforcement by way of Judgment against the Consumer and in terms of:
13.1.1 the Supreme Court Act 1959;
13.1.2 the Magistrate’s Court Act 1944;
13.2.3 the Attorneys Act 1979; or
13.2.4 the Debt Collectors Act 1998
which ever is appropriate to the enforcement of this Agreement.
- Legal and other Costs
14.1 If the Consumer remains in default for more than twenty (20) days and the Credit Provider has drawn the Consumer’s default to his/her attention as required by the Act then:
14.1.1 the full balance owing by the Consumer to the Credit Provider will at the option of the Credit Provider immediately become due and payable;
14.1.2 may be handed over to an Attorney to institute legal action against the Consumer for which legal costs the Consumer will be liable, which will include but not be limited to:
18.104.22.168 legal costs on an attorney and client scale including all the expenses incurred by the attorney briefed by the Credit Provider, including all costs of any Advocate instructed by the attorney, and the costs of the professional services rendered by the attorney to the Credit Provider;
22.214.171.124 collection charges and tracing fees;
126.96.36.199 revenue stamps and sheriff’s fees; and
188.8.131.52 value added tax thereon which the Credit Provider may incur in recovering or attempting to recover monies which the Consumer owes the Credit Provider.
- Addresses for Notice
15.1 The Credit Provider and the Consumer agree that when ever either one of them is required or wishes to give legal notice or written notice to the other one for any purpose contemplated in this Agreement, the party giving notice must deliver a notice to the other party in writing by hand or registered mail to the other party’s chosen domicilium citandi et executandi address.
15.2 Until termination of this Agreement the Consumer must inform the Credit Provider, in writing and in the prescribed time, manner and form, of any changes concerning the Consumer’s residential or business address as set out on the front of this Agreement which address
the Consumer chooses as his/her domicilium citandi et executandi for purposes of service of any notice of legal process on him/her.
15.3 Either party to this Agreement may change his/her address by delivering to the other party a written notice of the new address by hand or registered mail which new address will constitute the party’s domicilium citandi et executandi address for purposes of service of any
notice or legal process on such party.
- Consumer Credit Information and Credit Bureau
16.1 The Consumer agrees that the Credit Provider may:
16.1.1 makes enquiries to confirm any information provided by the Consumer in his/her application or at any time during the Agreement;
16.1.2 submit to any Credit Bureau or third party with whom the Consumer has financial relations at any time, any information about or as contained or provided to the Credit Provider by the Consumer in the Consumer’s application, or about the application, opening and closing of this Agreement and account;
16.1.3 seek, verify and receive information from any Credit Bureau or third party with whom the Consumer has financial relations when assessing the Consumer’s application or credit worthiness, and also at any time during the existence of the Agreement;
16.1.4 provide, disclose and register the existence of this Agreement and any personal information and details relating thereto, to any Credit Bureau or third party with whom the Consumer has financial relations, sharing positive and negative information about the Consumer or the Consumer’s credit account including any non-compliance with the terms and conditions of this Agreement.
16.2 The Consumer acknowledges and understands that a Credit Bureau will provide the Credit Provider with credit profile information and possibly a credit score reflecting the Consumer’s credit worthiness.
Any extension, indulgence or condonation granted by the Credit Provider to the Consumer shall not be interpreted as a waiver by the Credit Provider of any of its rights in terms of this Agreement.
- Whole Agreement
The Agreement constitutes the whole Agreement between the Credit Provider and the Consumer and any change to the Agreement will be void unless recorded in writing and signed by both parties.