Credit provider registration deadline nears

Time is running out for all persons and entities granting credit to register with the National Credit Regulator (NCR).

“Previously‚ a person or entity was compelled to be registered only if the value of that person’s or entity’s credit agreements amounted to R500,000 or if that person or entity concluded 100 credit agreements. “This threshold has been effectively repealed”‚ said Nthupang Magolego‚ senior legal advisor at the NCR.

The removal of the threshold was announced in May by Trade and Industry Minister Rob Davies.

“The implication of the new threshold is that as from the 11th November 2016‚ any person or entity that is involved in the provision of credit is now required to register irrespective of the number of agreements and/or the value of the principal debt‚” said Magolego.

She added that there will be consequences for people or institutions that plan on extending credit without being registered as these agreements “will be unlawful”.

“We encourage consumers to only use registered credit providers when seeking credit as doing so will advance their rights as outlined in the NCA.”