"(d) affecting the consumer, a person who is dependent upon the consumer or a person for who the consumer is financially responsible;"

6.On page 10, from line 28, to omit the definition of "incidental credit agreement" and to substitute:
incidental credit agreement" means an agreement, irrespective of its form, in terms of which an account was tendered for goods or services that have been provided to the consumer, or goods or services that are to be provided to a consumer over a period of time and either or both of the following conditions apply:

(a)a fee, charge or interest became payable when payment of an amount charged in terms of that account was not made on or before a determined period or date; or

(b)two prices were quoted for settlement of the account, the lower
price being applicable if the account is paid on or before a determined date, and the higher price being applicable due to the account not having been paid by that date;
provided that there has been prior disclosure of, and agreement in respect of paragraph (a) or (b).

7.On page 10, in line 35, to omit "34(1)" and to substitute" 25(1)(a)"

8.On page 10, after line 44, to add the following paragraph:
"(d) interest, fees or other charges are payable to the credit provider in respect of the agreement, or the amount that has been deferred;"

9.On page 10, in line 46, after "unincorporated" to insert "other than stokvels and co-operatives"

10.On page 11, in line 11, to omit "(1).

11.On page 11, in line 21, to omit the definition of "mortgage" and to substitute "means a pledge of immovable property which serves as security for a mortgage agreement"

12.On page 11, after line 21, to insert the following definition:
"mortgage agreement" means a credit agreement that is secured by a pledge of immovable property".

13.On page 11, from line 22, to omit the definition of "non-returnable goods".

14.On page 11, from line 39, to omit the definition of "outstanding account".

15.On page 12, from line 1, to omit the definition of "prepaid transaction".

16.On page 12, in line 14, after "wholly" to insert "or principally".

17.On page 12, in line 18, after "bureau" to insert "or" and to omit "or employer";

18. On page 13, in line 1, to omit "small" and to substitute "short".

19. On page 13, in line 1, to omit "telephonic" and to substitute "telecommunication".

20. On page 13, in line 7, after "credit" to insert "agreements".

CLAUSE 2

1.On page 13, from line 35, to omit subsection (3) and to substitute:
"(3) If a provision of this Act requires a document to be signed or initialed by a party to a credit agreement, that signing or initialing may be effected by use of-

(a)an advanced electronic signature, as defined in the Electronic Communications Act, 2002 (Act No.25 of 2002); or

(b)an electronic signature as defined in the Electronic Comm unic~tons Act, 2002 (Act No.25 of 2002), provided that-

(i)the electronic signature is applied by each party in the physical presence of the other party or an agent of the party; and

(ii)the credit provider must take reasonable measures to prevent the use of the consumer's electronic signature for any purpose other than the signing or initialing of the particular document that the consumer intended to sign or initial."

CLAUSE 4

1.On page 15, in line 2, after "turnover" to insert" or that of any other juristic person of which it is a subsidiary".

2.On page 15, in line 4, to omit "or"

3.On page 15, in line 6, after "Africa" to insert "or"

4.On page 15, after line 6, to insert the following paragraph:

"(d) a credit agreement in respect of which the credit provider is located outside the Republic, approved by the Minister on application by the consumer in the prescribed manner and form"

5.On page 15, from line 55, to omit subsection (6) and to substitute:

"(6) For the purposes of this Act, if a consumer pays for goods or services through a charge against a credit facility, which is provided by a third party, the person who sells the goods or services is not regarded to have entered into a credit agreement with the consumer merely by virtue of that fact;"

CLAUSE 5

1.Clause rejected.

NEW CLAUSE

Limited application of the Act to incidental credit agreements

"(5)(1) The following provisions of this Act apply with respect to an incidental credit agreement:

(a)Chapters 1,2,7,8 and 9

(b)Chapter 3, sections 54 and 59;

(c)Chapter 4, parts A and B;

(d)Chapter 4, part D, except to the extent that it deals with reckless credit;

Chapter 5, part C, to the extent that a provider of incidental credit may only recover interest on the amount deferred in terms of the agreement as is provided for in section 101(d), subject to any maximum rates of interest that may be imposed in terms of section 105, and any fees provided for in sections 101(f) and (g).

(e)Chapter 5, parts D and E, once the incidental credit agreement is deemed to have been made in terms of subsection (2); and

(f)Chapter 6, parts A and C.

(2)The parties to an incidental credit agreement are deemed to have made that agreement on the date that is 20 business days after -

(a)the supplier of the goods or services that are the subject of that account first charges a late payment fee or interest in respect of that account; or

(b)a pre-determined higher price for full settlement of the account first becomes applicable.

CLAUSE 8

1.On page 17, in line 6, after "insurance" to insert "and credit extended by the insurer, but only to the extent that the credit is utilized to maintain the payment of premiums on such a policy;"

2.On page 17, in line 25, to omit subparagraph (i)

CLAUSE11

1. On page 18, in line 44, after" period" to insert" after the effective date"

CLAUSE 13

1.On page 19, in line 44, to omit the second "and" and to substitute "or"

CLAUSE 15

1.On page 20, in line 28, to omit "related"

CLAUSE 19

1.On page 22, in line 32, to omit "and objects"

2.On page 22, in line 42, after "members", to insert "at least two of which must be knowledgeable on consumer matters."

CLAUSE 40

1.On page 29, in line 5, to omit "that arise from outstanding accounts".

2. On page 29, from line 7, to omit "that arise from outstanding accounts".

CLAUSE 41

1.On page 29, in line 49, after the first "credit" to insert "agreements".

CLAUSE 43

1.On page 30, in line 46, to omit "minimum" and to substitute "appropriate".

2.On page 30, from line 48, to omit" at least equivalent to those prescribed for debt counsellors"

3.On page 30, in line 54, to omit "and"

4.On page 30, in line 58, after "procedures" to insert"; and"

5.On page 30, after line 58, to add the following paragraph:
"(d) is registered with the South African Revenue Services."

CLAUSE 46
1.On page 31, in line 37, to omit paragraph (b)

CLAUSE 47

1.On page 32, in line 6, after "provider" to insert "or an employee or agent of a registered credit provider"

2.On page 32, after line 7, to insert:

"(a) individuals that are involved in, or employed in legal entities that are involved in any of the following areas, are disqualified from registration as debt counsellors-

(I)debt collection;

(ii)operation of a credit bureau; or

(iii)any other activity that may be prescribed by the Minister where in his or her opinion the activity so prescribed implies a conflict of interest with debt counselling;

(b)Individuals that are subject to an administration order as contemplated in section 74 of the Magistrates Courts Act, or that are subject to debt rearrangement as contemplated in sections 86 and 87, are disqualified from registration as debt counsellors.".

CLAUSE 48
1On page 32, in line 40, to omit" and"

2.On page 32, in line 44, after authority to insert "and"

3.On page 32, after line 44, to add the following paragraph:

"(c) registration with the South African Revenue Services."

CLAUSE 51

1.On page 34, in line 10, to omit "contemplated in section 40(2)(c)"

2.On page 34, in line 10, after "activities" to insert "in their own names at or from more than one location or premises, as contemplated in section 40(2)(c)".

CLAUSE 54

1.On page 35, to omit line 48, and to substitute:

"(5) Failure to comply with a notice issued in terms of this section is an offence.".

CLAUSE 55

1.On page 36, after line 19, to add the following subsection:
"(6) If a person fails to comply with a compliance notice as contemplated in section 55 without raising an objection in terms of section 56, the National Credit Regulator may refer the matter to the Tribunal for an appropriate order, or if the failure to comply with the notice constitutes an offence in terms of this Act, to the National Prosecuting Authority"

CLAUSE 57

1.On page 36, in line 38, to omit "a request may not be made to"

2.On page 36, in line 38, to omit the second "to" and to substitute "may not"

3.On page 36, in line 38, after "registration" to insert" except if requested to do so by the regulatory authority that licensed that regulated financial institution"

CLAUSE 61
1.On page 37, in line 47, after "association" to insert "of persons

2.On page 38, in line 38 to omit "primary or predominant basis of"

3.On page 38, in line 46, after "136", to insert", who must refer the complaint to the Equality Court if he or she is satisfied that the complaint is valid".

4.On page 38, from line 47, to omit subsection (7).

5. On page 38, in line 51, to omit "The Tribunal or a" and to substitute "A".

CLAUSE 68

1.On page 41, in line 47, after "extent" to insert "permitted or"

2.On page 41, after line 51, to insert the following subsection:

'(2) A person may only file information contemplated in section 70(1), with a registered credit bureau, the National Credit Register, or another person as required or permitted in terms of this Act, other national legislation or applicable provincial legislation."

3.On page 41, from line 52, to omit subsection (2) and to substitute:

"(3) Failure by a credit bureau to comply with a notice in terms of this section is an offence."

CLAUSE 69

1.On page 42, in line 9, to omit" a prepaid transaction" and to substitute "an incidental credit agreement"

2.On page 42, in line 21, after "any;" to omit "and"

3.On page 42, in line 29, after with, to insert "and"

4.On page 42, after line 29, to add the following subparagraph:
"(f) any alternative requirements applicable to developmental credit providers, as prescribed by the Minister upon recommendation from the National Credit Regulator."

5. On page 42, from line 44, to omit subsection (6).

CLAUSE 70

1 On page 43, in line 28, after Act" to insert "upon payment of the credit bureau's fee except where the Act explicitly provides that no fee be charged"

2. On page 43, in line 28, to omit and"

3. On page 43, after line 31, to insert "and"

4. On page 43, after line 31, to insert the following subparagraph:

"(i) not knowingly or negligently provide a report to any person containing inaccurate information."

5. On page 43, from line 39, to omit subsection (4) and to substitute:

"(4) The Minister may prescribe-

(a) standards for the filing, retention and reporting of consumer credit information by credit bureaux, in addition to, or in furtherance of, the requirements set out in this section; and

(b) maximum fees that may be charged to a consumer for accessing personal consumer credit information."

6. On page 43, from line 54, to omit subsection (6) and to substitute:

"(6) Failure to comply with a notice issued in terms of this section is an offence."

CLAUSE 71

On page 44, after line 24, to add the following subsection:

"(6) Upon confirmation received in the prescribed form, that judgment has been rescinded and following receipt of a court order for the rescission, the credit bureau must expunge the judgment from its records."

2. On page 44, from Iine, 25, to omit subsection (8) and to substitute:

"(7) Failure by a credit bureau to comply with a notice issued in terms of this section is an offence".

CLAUSE 72

1. On page 44, in line 41, after "corrected" to insert" ,if a change was necessary"

2. On page 44, in line 51, to omit the first "the" and to substitute "any"

3. On page 44, in line 51, to omit "reported" and to substitute "filed"

5. On page 45, from line 18, to omit subsection (6) and to substitute: "(6) Failure to comply with a notice issued in terms of this section is an offence."

6. On page 45, after line 10, to insert:

"(5) A Credit Bureau or the National Credit Register may not report information that is challenged until the challenge has been resolved in terms of subsection (3)(a) or (b)".

7. On page 45, in line 5, to omit "(5)", and to substitute "(7)"

NEW CLAUSE

1. On page 45, after line 19, to insert the following clause:

Data cleansing process

(1) The Minister may, within a period of four months after the effective date, prescribe-

(a) the time-frame, form and manner in which consumer credit information held by a credit bureau must be reviewed, verified or removed;

(b) the time frame and manner according to which free records are to be accessed by consumers in the first year after this Act comes into effect.

(2) When prescribing a matter contemplated in subsection (I) the Minister must –

(a) consider among other things-

(i) the predictive nature of such information; and

(ii) the socio-economic impact on consumers of the removal of such information; and

(b) engage in consultation with affected stakeholders

CLAUSE 74

1. On page 46, in line 23, to omit "Subsection (2)" and to substitute "This section".

2. On page 46, in line 23, after "credit" to insert "agreements".

CLAUSE 75

1. On page 46, after line 57, to add the following subsection: "(5) In any advertisement concerning the granting of credit, a credit provider must state or set out the interest rate and other credit costs in the prescribed manner and form."

2. On page 46, in line 58, after "credit" to insert "agreements".

CLAUSE 76

1. On page 47, in line 7, to omit "written"

2. On page 47, in line 7, after solicitation, to insert "by or on behalf of a credit provider"

3. On page 47, in line 8, to omit "of the following" and to substitute "with the prescribed"

4. On page 47, in line 8, after "information" to insert "for the particular type of solicitation"

5. On page 47, from line 9, to omit paragraphs (a) to (f)

6. On page 47, from line 17, to omit subsection (2)

CLAUSE 77
1. Clause rejected

CLAUSE 78

"1. On page 47, after line 39, after "loan"to insert:

"provided that reasonable proof of the existence of the emergency as defined in section 1 in respect of paragraphs (a) to (c) 5 obtained and retained by the credit provider and any such credit is reported to the National Credit Register in the prescribed manner and form."

omn 47 after line 39, provided thatany dredit extended to sub a to c are reported to the n credir register in the prescribed manner and form

CLAUSE 80

1. On page 48, in line 21, after "made" to insert "or at the time when the amount approved in terms of the agreement is increased"

2. On page 48, to omit line 42, and to substitute:

"(a) any credit facility or facility in terms of which the consumer may draw down on a loan secured by a mortgage without reference to the credit provider, is the limit of that facility at that time;"

CLAUSE 81

1. On page 49, in line 16, to omit "or the Tribunal".

CLAUSE 83

1. On page 49, in line 46, after "consumer's" to insert "rights and"

2. On page 49, in line 58, after" consumer's" to insert "rights and"

3. On page 50, in line 4, after "such" to insert" rights and."

CLAUSE 89

1. On page 53, from line 8, to omit paragraph (b).

2. On page 53, in line 12, after "minor" to insert "unassisted by a guardian".

3. On page 53, from line 22, to omit "unless the agreement is an incidental credit agreement"

4. On page 53, in line 47, to omit "or the Tribunal".

5. On page 53, in line 58, to omit "Tribunal or".

CLAUSE 90

1. On page 54, in line 52, after "provider" to insert "in respect of any matter related to the granting of credit in terms of this Act"

2. On page 55, in line 9, to omit "person" and to substitute "credit provider".

3. On page 55, in line 20, to omit "the Tribunal".

CLAUSE 92

1.On page 56, after line 4, to insert:

(3) Where the credit is extended for the purchase of an item with limited availability, the credit provider may make the quotation subject to the continued availability of the item."

2 On page 56, in line 5, before "For" to insert "Subject only to sections 81 and 101 (1)(d)(jj)."

3. On page 56, to omit line 17

CLAUSE 93

1. On page 56, to omit line 51

CLAUSE 94

1. On page 57, from line 1, to omit paragraph (b)

CLAUSE 102

1.On page 59, after line 42, to insert the following paragraph:

"(a) An initiation fee as contemplated in section 101(1)(b), subject to the consumer having been offered the option of settling the cost of the initiation fee up front and the consumer not having accepted such offer"

2. On page 59, in line 45, to omit "or"

3. On page 59, in line 46, after "fees" to insert "or"

4. On page 59, after line 46, to insert the following paragraph:

"(f) subject to section 106, the premiums of any credit insurance payable in respect of that credit agreement"

CLAUSE 103

1. On page 60, from line 7, to omit subsection (1) and to substitute:

"(1) Subject to subsection (5), the interest rate applicable to an amount in default or an overdue payment under a credit agreement may not exceed the highest interest rate applicable to any part of the principal debt under that agreement."

CLAUSE 104

1. On page 60, in line 31, to omit "or a credit facility"

2. On page 60, in line 39, after "than" to insert "30 days from"

3. On page 60, in line 41, after "rate" to insert "and any further prescribed information"

4. On page 60, in line 42, after "rate" to insert "as contemplated in section 103(4)"

5. On page 60, from line 43, to omit subsections (4) and (5)

CLAUSE 106

1.Clause rejected.

NEW CLAUSE

Credit insurance

106 (1) A credit provider may require a consumer to maintain sufficient-

(a) credit life insurance and insurance cover against any damage or loss of any property other than property referred to in subsection (1)(b) ,limited to the consumer's outstanding obligations to the credit provider at any time during the term of their credit agreement; and

(b) insurance cover in respect of immovable property that is subject to a mortgage, up to the full asset value of the property for the term of the credit agreement.

(2) In addition to insurance that may be required in terms of subsection (1), subject to the requirements of this section, a credit provider may offer a consumer optional insurance in relation to the obligations of the consumer under the credit agreement or relating to the possession, use, ownership or benefits of the goods or services supplied in terms of the credit agreement.

(3) Despite subsection (1), a credit provider must not offer or demand that the consumer purchase or maintain insurance that is-

(a) unreasonable; or

(b) at an unreasonable cost to the consumer, having regard to the actual risk and liabilities involved in the credit agreement.

(4) If the credit provider proposes to the consumer the purchase of a particular policy of credit insurance as contemplated in subsection (1) or (2)-

(a) the consumer must be given, and be informed of, the right to waive that proposed policy and substitute a policy of the consumer's own choice, subject to subsection (6),

(b) any policy required under subsection (1) or offered under subsection (2) by the credit provider must provide for payment of premiums by the consumer-

(i) on a monthly basis in the case of small and intermediate agreements; or

ii) on a monthly or annual basis in the case of large agreements for the duration of the credit agreement; and

(ii) in the case of an annual premium the premium must be recovered from the consumer within the applicable year.

(5) With respect to any policy of insurance arranged by a credit provider as contemplated in subsection (4), the credit provider-

(a) must not add any surcharge, fee or additional premium above the actual cost of insurance arranged by that credit provider;

(b) must disclose to the consumer in the prescribed manner and form-

(i) the cost to the credit provider of any insurance supplied;

(ii) the cost to the consumer of any insurance supplied; and

(ii) the amount of any fee, commission, remuneration or benefit receivable by the credit provider, in relation to that insurance;

(c) must explain the terms and conditions of the insurance policy to the consumer and provide the consumer with a copy of that policy; and

d) must be a loss payee under the policy up to the settlement value at the occurrence of an insured contingency only and that any remaining proceeds of the policy must be paid to the consumer.

(6) If the consumer exercises the right under subsection 4(a) to substitute an insurance policy of the consumer's own choice, the credit provider may require the consumer to provide the credit provider with the following written directions-

(a) a valid direction in the prescribed manner and form requiring and permitting the credit provider to pay any premiums due under that policy during the term of the credit agreement on behalf of the consumer as they fall due, and to bill the consumer for

(i) the amount of such premiums on a monthly basis for small and intermediate agreements and on a monthly or annual basis for large agreements; and; and

(ii) an administration fee in respect of such payments not exceeding the prescribed amount charged in accordance with (i) above; and

(b) a valid direction to the insurer in the prescribed manner and form, naming the credit provider as a loss payee under the policy up to the settlement value at the happening of an insured contingency, and requiring the insurer, if an insured event occurs, to settle the consumer's obligation under the credit agreement as a first charge against the proceeds of that policy at any time during the term of the credit agreement.

7) A consumer must be offered a pro rata refund on the insurance premium if the credit agreement is settled before the end of a year in case of annual premium.

CLAUSE 107

1. On page 63, to omit line 8.

CLAUSE 111

1. 2. On page 64, from line 33, to omit all the words from "within" up to "shown" in line 35. On page 64, in line 43, to omit "at least 20 business days after"

CLAUSE 116

1. On page 65, in line 42, to omit "or"

2. On page 65, in line 44, after "made" to insert" unless the change is effected in terms of section 119(1)(c)"

3. On page 65, after line 44, to add:

"(c) the change is recorded in writing and signed by the parties; or

(d) any oral change is recorded electromagnetically and subsequently reduced to writing."

CLAUSE 121

1.On page 67, in line 29, to omit "account" and to substitute "agreement entered into at any location other than the registered business premises of the credit provider".

2. On page 67, to omit line 30

3. On page 67, from line 40, to omit all the words after "(b)" up to and including"74(2)(b)" in line 41.

CLAUSE 122

1. On page 68, from line 9, to omit "other than an agreement with respect to non-returnable goods"

CLAUSE 123

1. On page 68, in line 23, to omit "131" and to substitute "129"

CLAUSE 124

1. On page 69, in line 3 to omit the third "the" and to substitute "that".

2. On page 69, in line 4 to omit "a" and to substitute "that"

CLAUSE 125

1. On page 69, in line 34, to omit "and"

2. On page 69, in line 39, after "consumer" to insert "and"

3. On page 69, after line 39, to add the following paragraph: "

(d) in the case of a large agreement at a fixed rate of interest, an early termination charge no more than a prescribed charge, or a charge calculated in accordance with section 125(2)(c), if no charge has been prescribed."

CLAUSE 127
1.On page 69, in line 53, to omit subsection (1)
2.On page 70, from line 17, to omit all the words after "agreement" up to including "value" in line 19. 3.On page 70, from line 24, to omit paragraph (b).

CLAUSE 129
1.On page 71, in line 25, to omit the second "to" and to substitute "that"
2.On page 71, in line 26, to omit "that" and to substitute "refer"
3.On page 71, in line 26, to omit "be referred"
4.On page 71, in line 27, to omit "the"
5.On page 71, in line 34, to omit "86(9)" and substitute "86(10)
6.On page 71, in line 39, after "time" to insert "before the credit provider cancelled the agreement"
7.On page 71, in line 49, to omit "or"
8.On page 71, in line 50, after "agreement" to insert "or"
9.On page 71, after line 50, to add the following paragraph:
"(c) the termination thereof in accordance with section 123"

CLAUSE 134
1.On page 73, in line 45, to omit "may" and to substitute "must"
2.On page 73, in line 50, to omit "if there is no ombud with jurisdiction as contemplated in paragraph (a), or"
3.On page 74, in line 37, after (4), to insert "(b)"

CLAUSE 136
1.On page 75, from line 7, to omit subsection
(2) and to substitute:
"(2) The National Credit Regulator may initiate a complaint against any person or entity for any contravention of the provisions of this Act."

CLAUSE 143

1.On page 78, in line 38, to omit "24(c) and to substitute "27(c)"

CLAUSE 148
1.On page 79, in line 22, to omit "subsection (3) and"
2.On page 79, from line 28, to omit all the words from "(i)" up to and including "(ii)" in line 30.
3.On page 79, from line 31, to omit subsection (3).

CLAUSE 150
1.Clause rejected

. NEW CLAUSE

Orders of Tribunal
1 50. In addition to its other powers in terms of this Act, the Tribunal may make an appropriate order in relation to prohibited conduct or required conduct in terms of this Act, including-
declaring conduct to be prohibited in terms of this Act;
interdicting any prohibited conduct;
imposing an administrative fine in terms of section 151, with or without the addition of any other order in terms of this section
confirming a consent agreement in terms of this Act as an order of the Tribunal;
condoning any non-compliance o.~ its rules and procedures on good cause shown;
confirming an order against an unregistered person to cease engaging in any activity that is required to be registered in terms of this Act.
suspending or cancelling the registrant's registration, subject to section 57(2) and (3);
requiring repayment to the consumer of any excess amount charged, together with interest at the rate set out in the agreement;
any other appropriate order required to give effect to a right, as contemplated in this Act.

CLAUSE 151
1.On page 81, in line 13, to omit "penalty" and to substitute "fine"
2.On page 81, in line 15, to omit "subsection (1)" and to substitute with "section 150".

CLAUSE 152
1.On page 81, in line 50, to omit "penalty" and substitute 'fine"
2.On page 81, in line 52, to omit "penalty" and substitute 'fine"

CLAUSE 156
1.On page 83, in line 48, to omit "firm" and to substitute 'juristic person"

CLAUSE 163
1.Clause rejected.

NEW CLAUSE