All entities and any individual granting credit should be registered with the National Credit Regulator as of 11 November.
A new threshold has been determined for the purpose of determining whether or not a credit provider is required to be registered with the National Credit Regulator in terms of the National Credit Act.
Previously, a person or entity was compelled to be registered only if the value of that person’s or entity’s credit agreements amounted to R500 000 or if that person or entity concluded 100 credit agreements.
“This threshold has been effectively repealed,” said Nthupang Magolego, senior legal advisor at the credit regulator.
“The implication of the new threshold is that as from 11 November, any person or entity that is involved in the provision of credit is now required to register, irrespective of the number of agreements or the value of the principal debt,” emphasised Magolego.
She said there would be consequences for people or institutions that plan on extending credit without being registered. “Credit agreements concluded by such unregistered credit providers will be unlawful,” she said.
The regulator encouraged consumers to only use registered credit providers when seeking credit as it would advance their rights as outlined in the credit act.
New regulation requires credit providers to be registered
JOBURG – Consumers are encouraged to only use registered credit providers when seeking credit.
