COL3704
Consumer Law
May/June 2014
Define Credit Agreements by National Credit Act 34 of 205
Contract of lease
Contract of lease is a credit transaction
- Lease is where movable goods are let to the consumer who
obtains either temporary possession or the right to use the good.
- Payment of the rent occurs in instalments or in deferred in whole
or in part.
- A fee, charge or interest is payable by the lessee.
Visa Credit card payments
Credit card purchases is a Credit Facility
A credit facility is an agreement where
- the credit provider undertakes to supply goods and services
- Or pay amounts as determined by the consumer to or on behalf
of the consumer, and
Either to
- Defer the consumers obligations to pay or
- Repay to the credit provider any amount or
- Bill the consumer periodically for any part of the cost of goods or
services.
, Loans – repay in 6 months
Loans is a Credit facility
A credit facility is an agreement where
- the credit provider undertakes to supply goods and services
- Or pay amounts as determined by the consumer to or on behalf
of the consumer, and
Either to
- Defer the consumers obligations to pay or
- Repay to the credit provider any amount or
- Bill the consumer periodically for any part of the cost of goods or
services.
3 Classes of Agreements as describe by the National Credit Act 34 of
2005
The Act makes allowances for 3 different sized agreements depending
on the type of agreement and the value of the principal debt. These
are small credit agreements, intermediate credit agreements, and
large credit agreements.
1.Small credit agreements
Small agreements include
• pawn transactions or credit facilities or credit transactions
• where credit limit or principal debt is equal to or less than R15 000
• excludes a mortgage bonds or a credit guarantees
2. Intermediate credit agreements
Intermediate agreements include
• credit facilities or credit transactions
• where the credit limit or principal debt is more than R15 000 but less
than R250 000
• excludes pawn transactions or mortgage bonds or credit guarantees
Consumer Law
May/June 2014
Define Credit Agreements by National Credit Act 34 of 205
Contract of lease
Contract of lease is a credit transaction
- Lease is where movable goods are let to the consumer who
obtains either temporary possession or the right to use the good.
- Payment of the rent occurs in instalments or in deferred in whole
or in part.
- A fee, charge or interest is payable by the lessee.
Visa Credit card payments
Credit card purchases is a Credit Facility
A credit facility is an agreement where
- the credit provider undertakes to supply goods and services
- Or pay amounts as determined by the consumer to or on behalf
of the consumer, and
Either to
- Defer the consumers obligations to pay or
- Repay to the credit provider any amount or
- Bill the consumer periodically for any part of the cost of goods or
services.
, Loans – repay in 6 months
Loans is a Credit facility
A credit facility is an agreement where
- the credit provider undertakes to supply goods and services
- Or pay amounts as determined by the consumer to or on behalf
of the consumer, and
Either to
- Defer the consumers obligations to pay or
- Repay to the credit provider any amount or
- Bill the consumer periodically for any part of the cost of goods or
services.
3 Classes of Agreements as describe by the National Credit Act 34 of
2005
The Act makes allowances for 3 different sized agreements depending
on the type of agreement and the value of the principal debt. These
are small credit agreements, intermediate credit agreements, and
large credit agreements.
1.Small credit agreements
Small agreements include
• pawn transactions or credit facilities or credit transactions
• where credit limit or principal debt is equal to or less than R15 000
• excludes a mortgage bonds or a credit guarantees
2. Intermediate credit agreements
Intermediate agreements include
• credit facilities or credit transactions
• where the credit limit or principal debt is more than R15 000 but less
than R250 000
• excludes pawn transactions or mortgage bonds or credit guarantees
