On 11 May 2016, the Minister of Trade and Industry published the Determination of a Threshold for Credit Provider Registration in terms of the National Credit Act, No. 34 of 2005 (“NCA”).
Currently, the threshold determination is R500, 000, meaning that a credit provider is required to apply for registration to the National Credit Regulator (“NCR”) only if the principal debt owing to that credit provider exceeds R500, 000.
However, with effect from 11 November 2016, the threshold value will be nil (R0) and all credit providers, irrespective of the amount of the principal debt, will be required to be registered with the NCR.
This is a significant change to the NCA as any credit agreements concluded with an unregistered credit provider will be unlawful and void and such credit provider will not have a claim, based on the credit agreement, for the outstanding amounts.
Additionally, a credit provider may be found liable for an administrative fine if such non-compliance is referred to the National Consumer Tribunal and found guilty of prohibited conduct.
The application, registration and renewal fees for credit providers, credit bureaus, debt counsellors, payment distribution agents and alternative dispute resolution agents were also amended on 11 May 2016 and may be found at: