National Credit Act, 2005 (Act No. 34 of 2005)Chapter 5 : Consumer Credit AgreementsPart B : Disclosure, form and effect of credit agreements92. Pre-agreement disclosure |
| (1) | A credit provider must not enter into a small credit agreement unless the credit provider has given the consumer a pre-agreement statement and quotation in the prescribed form. |
| (2) | A credit provider must not enter into an intermediate or large credit agreement unless the credit provider has given the consumer— |
| (a) | a pre-agreement statement— |
| (i) | in the form of the proposed agreement; or |
| (ii) | in another form addressing all matters required in terms of section 93; and |
| (b) | a quotation in the prescribed form, setting out the principal debt, the proposed distribution of that amount, the interest rate and other credit costs, the total cost of the proposed agreement, and the basis of any costs that may be assessed under section 121(3) if the consumer rescinds the contract. |
| (3) | Subject only to subsection (4), sections 81 and 101(1)(d)(ii), for a period of five business days after the date on which a quotation is presented in terms of subsection (2)(b)— |
| (a) | with respect to a small agreement, the credit provider must, at the request of the consumer, enter into the contemplated credit agreement at or below the interest rate or credit cost quoted, subject only to sections 81 and 101(1)(d)(ii); |
| (b) | with respect to an intermediate or large agreement, the credit provider must, at the request of the consumer, enter into the contemplated credit agreement at an interest rate or credit cost that— |
| (i) | is at or below the interest rate or credit cost quoted; or |
| (ii) | is higher than the interest rate or credit cost quoted by a margin no greater than the difference between the respective prevailing bank rates on the date of the quote, and the date the agreement is made. |
| (4) | If credit is extended for the purchase of an item with limited availability, the credit provider may state that the quotation provided in terms of this section is subject to the continued availability of the item during the period contemplated in subsection (3). |
| (5) | The Minister may prescribe different forms to be used in terms of this section in respect of— |
| (a) | developmental credit agreements; and |
| (b) | other credit agreements. |
| (6) | A statement that is required by this section to be delivered to a consumer may be transmitted to the consumer in a paper form, or in a printable electronic form. |
| (7) | This section does not apply to any offer, proposal, pre-approval statement or similar arrangement in terms of which a credit provider merely indicates to a prospective consumer a willingness to consider an application to enter into a hypothetical future credit agreement generally or up to a specified maximum value. |