Most of the work in this department involves assisting and advising clients regarding issues pertaining to the National Credit Act and the Consumer Protection Act.National Credit Act:
The National Credit Act aims to protect the consumer, to eliminate various undesirable credit practices and to regulate consumer credit agreements, credit providers and credit bureaus, as well as to provide mechanisms for debt rehabilitation. This Act also brings into existence the National Credit Regulator (NCR) which is responsible for the regulation of the consumer credit industry.
We are able to advise and assist on matters such as:
- understanding whether a client should be considered a credit provider in terms of the Act
- what must be implemented by a credit provider to comply with the Act
- the meaning of unlawful contracts and associated terms
- maximum amounts of interest that can be charged
- the process to follow when a debtor is in default of a credit agreement.
Consumer Protection Act
Fault is not a requirement under the Act and all persons in the supply chain could be found liable for defective products. We have assisted businesses in familiarising themselves with the provisions of the Act and have effected the necessary amendments to their contracts (for example terms and conditions of sale), business processes and marketing practices, in order to avoid administrative fines of up to 10% of their annual turnover. This process is often better addressed by way of a consumer audit at the client premises.
We are also able to advise clients with respect to:
- compliant consumer related documentation
- the manner in which to address a compliance order
- the consumer tribunal.