National Credit Act, 2005 (Act No. 34 of 2005)Chapter 4 : Consumer Credit PolicyPart C : Credit marketing practices74. Negative option marketing and opting out requirements |
| (1) | A credit provider must not make an offer to enter into a credit agreement, or induce a person to enter into a credit agreement, on the basis that the agreement will automatically come into existence unless the consumer declines the offer. |
| (2) | Subject to section 119(4), a credit provider must not make an offer to increase the credit limit under a credit facility, or induce a person to accept such an increase, on the basis that the limit will automatically be increased unless the consumer declines the offer. |
| (3) | A credit provider must not make a proposal to alter or amend a credit agreement, or induce a person to accept such an alteration or amendment, on the basis that the alteration or amendment will automatically take effect unless the consumer rejects the proposal, except to the extent contemplated in section 104, 116(a), 118(3) or 119(4). |
| (4) | A credit agreement purportedly entered into as a result of an offer or proposal contemplated in subsection (1), is an unlawful agreement and void to the extent provided for in section 89. |
| (5) | A provision of a credit agreement purportedly entered into as a result of an offer or proposal contemplated in subsection (2) or (3) is an unlawful provision and void to the extent provided for in section 90. |
| (6) | When entering into a credit agreement, the credit provider must present to the consumer a statement of the following options and afford the consumer an opportunity to select any of those options: |
| (a) | To decline the option of pre-approved annual credit limit increases as provided for in section 119(4), if the agreement is a credit facility; and |
| (b) | to be excluded from any— |
| (i) | telemarketing campaign that may be conducted by or on behalf of the credit provider; |
| (ii) | marketing or customer list that may be sold or distributed by the credit provider, other than as required by this Act; or |
| (iii) | any mass distribution of email or sms messages. |
| (7) | A credit provider— |
| (a) | must maintain a register in the prescribed manner and form of all options selected by consumers in terms of subsection (6); and |
| (b) | must not act in a manner contrary to an option selected by a consumer in terms of subsection (6). |