Consumer Credit Agreement Template for South Africa

The Consumer Credit Agreement is a crucial legal document used in South Africa when extending credit facilities to consumers, whether for personal loans, credit cards, store credit, or other forms of consumer financing. This agreement must strictly comply with the National Credit Act 34 of 2005 and related regulations, which set out specific requirements for content, format, and disclosure. The document is essential for any business providing credit to consumers in South Africa and must include prescribed information about credit costs, consumer rights, repayment terms, and credit provider obligations. It serves as both a legal record of the credit arrangement and a compliance tool, ensuring that credit providers meet their regulatory obligations while protecting consumer rights.

1. Parties: Identification of the credit provider and consumer, including full legal names, registration/identity numbers, and contact details

2. Background: Brief context of the credit agreement and its purpose

3. Definitions: Definitions of key terms used in the agreement, including statutory terms from the National Credit Act

4. Credit Facility Details: Specific details of the credit facility including principal debt, interest rate, and total cost of credit as required by the NCA

5. Payment Terms: Details of repayment schedule, installment amounts, and payment methods

6. Interest and Fees: Breakdown of interest rates, initiation fees, service fees, and other charges as regulated by the NCA

7. Consumer Rights: Statement of consumer rights under the NCA including cooling-off period and right to early settlement

8. Credit Provider Obligations: Obligations of the credit provider including statements, notifications, and compliance requirements

9. Default and Enforcement: Consequences of default, enforcement procedures, and debt collection practices in accordance with the NCA

10. General Terms: Standard contractual terms including amendments, notices, and governing law

11. Data Protection: Terms regarding the processing of personal information in compliance with POPIA

12. Signatures: Execution clause and signature blocks for all parties