Our last Consumer Credit Update referred to the promulgation of the National Credit Regulations including Affordability Assessment Regulations (Regulations). These Regulations are required to be implemented with immediate effect.

Compliance with the Regulations effect the conduct of business in the credit granting industry in a number of ways:

  • From a business process and procedure point of view affordability assessments will require review.
  • From a documentation point of view, the application form and the questions asked therein as well as the pre-agreement statement and quotation and the details required therein will need to be amended to ensure full compliance.
  • Contractual terms and conditions will need to reflect the changed obligations of the credit provider and rights of the borrower.
  • Procedurally, the new reporting requirements in relation to consumer credit information will need to be taken into account in the conduct of business.

Business processes and policies, credit agreements and other product documentation need to be considered in light of the aforesaid.