The 2005 National Credit Act No. 34 („the law”) transformed the credit sector in South Africa and led to the introduction of several new concepts into the South African legal system, including the concept of an „intermediate credit contract”. As a result, the statutory requirements that apply to a credit provider, which are made available only to ancillary credits, are less onerous than for other credit providers, and the remedies made available to a consumer under such a secondary credit contract are more limited than the corrective measures made available to consumers in other generally statutory credit contracts. For more information on the application of transactions and credit contracts to the company, please contact our offices on 27 21 200 0770. Therefore, a credit provider that makes available to consumers an account payable within 30 days, in the form of which the lender does not collect interest in the first 30 days, but calculates or retains interest if the account is not fully settled within 30 days, is not an incidental credit within the meaning of the law. In this case, if two prices are listed in advance, (z.B. if, at the beginning of a school year, a parent has the option of paying the „x” amount (a reduced amount) for tuition fees or paying „y” per month (which brings the final amount to a higher amount) and if the payment is not made on a predetermined date and if the interest is calculated on the amount owed 2) the definition of a credit contract accessory. The same logic can be applied if a discount is offered to someone if an advance payment is made. If the creditor calculates a late tax or interest, an ancillary contract is deemed to have been entered into twenty business days after the date the first late or interest charges were charged.

For example, a provider provides an account for the services provided that provides that the account is due before June 23, 2014, otherwise a fee, fee or interest will be deducted from the outstanding. The consumer, insolvent with his payment and the supplier calculates the interest on the outstanding from June 24, 2014. Twenty business days after June 24, 2014, they are considered completed. Therefore, the date of the conclusion of the auxiliary credit contract is July 23, 2014, with the law stipulating that the first day of payment of a royalty, royalty or interest is excluded from the calculation. For more information on the requirements of Sections 129 and 130 or for assistance in drafting a section 129 notification, please contact our offices at 27 21 200 0770. The law specifies that certain provisions of the act do not apply to ancillary credit contracts, but paragraphs 129 and 130 of the National Credit Act continue to apply to ancillary credit contracts and, as such, if you, as a lender, wish to enforce the auxiliary credit contract, paragraph 129 must be made at the same time as Section 130 before the opening of legal proceedings. If, as a credit provider, you only provide ancillary goods, you do not need to register as a credit provider. However, if, as a lender, you provide both ancillary and credit contracts, ancillary credit contracts will not be taken into account for the registration requirements set out in section 40 of the Act.