When and where:

Date: 24 February 2006 Time: Presentation 10h00 - 12h30; Lunch 12h30 - 13h30; Questions 13h30 - 14h30

Venue: Bell Dewar & Hall, 37 West Street, Houghton
RSVP: Lucinda Scholtz
Tel: 710-6081
Fax: 710-6104
e-mail: lucinda.scholtz@belldewar.co.za

Parliament passed the National Credit Bill last year. The Bill is the most significant innovation in South African consumer and credit law since the passing of the Credit Agreements Act 25 years ago. As such the Bill will have a profound effect on South African business. The Bill is expected to come into effect during the first half of this year and businesses should be prepared for its impact.

If you are in doubt as to whether your business is affected, then consider the following:

• The Bill impacts upon all aspects of consumer and credit law and also seeks to regulate data privacy issues (primarily in relation to consumer credit information);
• It repeals the Usury Act and the Credit Agreements Act and introduces various new consumer protections;
• Credit providers who provide credit in terms of more than 100 agreements or who extend credit in excess of a prescribed threshold, will be required to register with the National Credit Regulator. Unregistered credit providers run the risk that this aspect of their business will be deemed to be illegal and their credit agreements will be declared null and void;
• The Bill makes provision for the registration of all credit agreements concluded in South Africa;
• Businesses who accumulate, maintain or disseminate consumer credit information (including information concerning a person's credit history; a person's financial history; a person's education, employment, career, professional or business history; a person's identity) may fall into the definition of a credit bureau. If so, they too will be required to register with the National Credit Regulator. If they don't register, they will not be able to conduct business;
• A business required to register, whether as a credit provider or a credit bureau, will have to apply for registration. The National Credit Regulator may impose conditions for registration.
• Registered entities will have their business practices regulated by the Bill, face sanction (including criminal sanction in some cases) for contraventions of the Bill and be required to lodge various reports with the National Credit Regulator;
• The Bill introduces the defence of reckless credit that may be raised by a debtor when faced with a claim in terms of a credit agreement and also makes provision for debtors to apply for the restructuring of their debt;
• The Bill is of crucial importance to all businesses who:
• extend credit to their clients or their employees, whether in relation to the provision of goods or services or for the advance of funds;
• charge interest on overdue accounts;
• accumulate, process or in any way deal in consumer credit information;
• provide credit insurance, credit guarantees, extended warranties or similar products.