NCA and CPA Compliant Credit Agreement

I am delighted to announce that Bregmans is now associated with Sarah-lynne Tennant, of SLT Legal Consulting, who specialises in consumer law, banking law, entrepreneurial law and the law of contract. Sarah lectures extensively on the National Credit Act and the Consumer Protection Act.

Sarah can conduct seminars at our office or in your boardroom, at very affordable rates.

We can help you ensure that your credit agreement and other consumer documents comply with the NCA and CPA. We have put together a credit agreement pack that is very reasonably priced for you to cut and paste onto your letterhead. For a nominal fee we can amend that generic document to conform to your specific industry.

We have designed a set of 6 documents, to assist you in considering whether to grant credit to customers and if so, the steps to follow. The templates comply with both acts and are written in plain English:

• covering letter to apply for a credit account or a request for a credit increase;
• application form;
• covering letter for a successful application;
• pre-quotation;
• credit agreement; and suretyship agreement.

The Credit Agreement is what the NCA calls an “incidental credit agreement” whereby:

• a credit provider renders services or goods to the consumer;
• the credit provider issues an account stipulating the required date of payment;
• the consumer fails to pay timeously;
• the credit provider first charges a late payment fee or interest on the deferred amount or on a higher settlement amount;
• two prices are therefore quoted: the lower one being before the agreed payment date and the higher being after that date;
• the deemed credit agreement comes into existence 20 business days after charging the late fee or interest or higher amount.

Please contact me if you need our help to make you NCA and CPA compliant.