"The implications of not registering when you should have registered are severe," charged Motshegare. She also cautioned that credit agreements signed by unregistered credit providers will be declared "unlawful and unenforceable" as from June 1 2007.
According to Motshegare, the main criteria for the registration of credit providers are: a credit provider must have signed at least 100 credit agreements or have a loan book of at least R500 000.
She explained that whilst the Credit Agreements Act, Usury Act and Usury Exemption Notice had been repealed by the National Credit Act (NCA), the provisions of the repealed Acts remained enforceable until the relevant provisions in the NCA are implemented.
Motshegare also expounded that entities that provide incidental credit do not have to register with the NCR.
"This means entities such as doctors, dentists or anyone who provides goods or services on account, with the possibility for the client to pay at the end of the month 'without charging interest'," she explained.
Significantly, Motshegare points out that it should be noted that financial products such as student loans, staff loans and a facility for the consumer to pay on account over time, with interest, and other credit providers need to register. -- I-Net Bridge
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