Related documents
- Is amended by Credit Agreements Amendment Act, 2016
- Is amended by Credit Agreements Proclamation, 1981
- Is commenced by Credit Agreements Proclamation, 1981
Credit Agreements Act, 1980
Act 75 of 1980
- Published in South African Government Gazette 7073 on 18 June 1980
- Assented to on 4 June 1980
- Commenced on 27 May 1981 by Credit Agreements Proclamation, 1981
- [This is the version of this document from 20 June 2016 and includes any amendments published up to 11 October 2024.]
- [Amended by Credit Agreements Proclamation, 1981 (Proclamation AG17 of 1981) on 27 May 1981]
- [Amended by Credit Agreements Amendment Act, 2016 (Act 3 of 2016) on 20 June 2016]
1. Definitions
In this Act, unless the context otherwise indicates -“cash price”, in relation to a credit agreement which is -(a)a credit transaction in terms of which a service is rendered, means the cash price at which the credit receiver may obtain that service from the credit grantor;(b)a leasing transaction, means the cash price at which the goods leased in terms of that leasing transaction are normally sold by the credit grantor on the date on which that leasing transaction is entered into or, if the credit grantor is not a trader normally selling any such goods, the reasonable money value of those goods as agreed upon between the credit grantor and the credit receiver;“credit agreement” means -(a)a credit transaction or a leasing transaction;(b)a transaction which or transactions which together have the same import as a transaction referred to in paragraph (a), irrespective of the form of the first-mentioned transaction or transactions and irrespective of whether any such transaction or transactions are subject to a resolutive or suspensive condition;“credit grantor” means -(a)a seller, or a person who renders a service, in terms of a credit transaction, and includes a person to whom the rights or the rights and obligations of any such seller or any such person so rendering a service have passed by assignment, cession, delegation or otherwise;(b)a lessor in terms of a leasing transaction, and includes a person to whom the rights or the rights and obligations of any such lessor have passed by assignment, cession, delegation or otherwise;“credit receiver” means -(a)a purchaser, or a person to whom a service is rendered, in terms of a credit transaction, and includes a person to whom the rights or the rights and obligations of any such purchaser or any person to whom a service is so rendered, have passed by assignment, cession, delegation or otherwise;(b)a lessee in terms of a leasing transaction, and includes a person to whom the rights or the rights and obligations of any such lessee have passed by assignment, cession, delegation or otherwise;“credit transaction” means -(a)a transaction, including an instalment sale transaction, in terms of which goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future;(b)a transaction in terms of which a person renders a service against payment to him by the person to whom the service is rendered of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future;“goods” means movable goods;“initial payment” means the amount to be paid by the credit receiver on the date of a credit agreement which is a credit transaction;“initial rental” means the amount to be paid by the credit receiver on the date of a credit agreement which is a leasing transaction;“instalment sale transaction” means a transaction in terms of which -(a)goods are sold by the seller to the purchaser against payment by the purchaser to the seller of a stated or determinable sum of money at a stated or determinable future date or in whole or in part in instalments over a period in the future; and(b)the purchaser does not become the owner of those goods merely by virtue of the delivery to or the use, possession or enjoyment by him thereof; or(c)the seller is entitled to the return of those goods if the purchaser fails to comply with any term of that transaction;“leasing transaction” means a transaction in terms of which a lessor leases goods to a lessee against payment by the lessee to the lessor of a stated or determinable sum of money -(a)at a stated or determinable future date; and(b)in whole or in part in instalments over a period in the future,and includes a transaction by which it is agreed at the time of the conclusion of the transaction that the debtor or any person on his behalf, shall at any stage –(i)during or after the expiry of the lease; or(ii)after the termination of the transactionbecome the owner of those goods or retain the possession or use or enjoyment of those goods;[definition of “leasing transaction” substituted with amendment markings by Act 3 of 2016; punctuation changes not indicated by amendment markings][definition of “Minister” deleted by AG 17 of 1981]“service” does not include a service rendered or provided by a person in the practising of a profession in respect of which his name has in terms of any law, excluding a regulation been entered into a roll or register;[definition of “service” amended by AG 17 of 1981]“State” includes the Administrator-General;[definition of “State” inserted by AG 17 of 1981]“territory” means the territory of South West Africa.[The definition of “territory” is inserted by AG 17 of 1981. The full stop at the end should be a semicolon.]“this Act” includes any regulation or notice made or issued thereunder.2. Application of Act
3. Regulations
4. Furnishing of information to prospective credit receivers
Any prospective credit grantor or his manager, agent or employee shall, before entering into a credit agreement at a place not being his business premises, in writing draw the attention of a prospective credit receiver to the provisions of section 13.5. Requirements in respect of and contents of credit agreements
6. Invalid provisions relating to credit agreements
7. Inducement to enter into credit agreements
Any prospective credit grantor or his manager, agent or employee shall not, as an inducement to enter into any credit agreement, directly or indirectly offer, give or promise any benefit to any prospective credit receiver unless such benefit, in the ordinary course of events, will constitute a condition of the credit agreement8. Obligation of credit receiver to furnish certain information
9. Limitation of cession by credit receiver of certain periodical amounts
10. Negotiable instruments
No credit grantor shall accept any post-dated negotiable instrument as an initial payment or initial rental in terms of a credit agreement.11. Limitation of right of credit grantor to enforce certain provisions of credit agreement
No credit grantor shall, by reason of the failure of the credit receiver to comply with any obligation in terms of any credit agreement, be entitled to claim the return of the goods to which the credit agreement relates unless the credit grantor by letter, handed over to the credit receiver and for which an acknowledgement of receipt has been obtained or posted by prepaid registered mail to the credit receiver at his address stated in the credit agreement in terms of section 5(1)(b) or the address changed in accordance with section 5(4), has notified the credit receiver that he so failed and has required him to comply with the obligation in question within such period, being not less than 30 days after the date of such handing over or such posting, as may be stated in the letter, and the credit receiver has failed to comply with such requirement: Provided that should the credit receiver have failed on two or more occasions to comply with obligations in terms of any credit agreement and the credit grantor has given notice as aforesaid, the said period shall be reduced to 14 days.12. Right of credit receiver to reinstatement after return of goods to credit grantor
13. Termination of credit agreement by credit receiver
14. Rights of credit receiver upon non-compliance with credit agreement
If a credit receiver fails to comply with any obligation in terms of any credit agreement or if any other contingency occurs which in terms of such credit agreement entitles the credit grantor to take action against the credit receiver, and such credit agreement is not terminated or rescinded, such credit receiver shall, subject to the provisions of the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968), not be bound to make any payment or to the performance of any other act whereby the credit grantor would be placed in a better financial position than that in which he would have been if the credit receiver had carried out the obligation in question or if such contingency had not occurred.[Act 73 of 1968 has been re-named the Usury Act.]15. Rights of parties to credit agreement which is instalment sale transaction, after return of goods
If the goods to which a credit agreement which is an instalment sale transaction relates, are returned to the credit grantor, and the value thereof at such return exceeds the amount still owing in terms of that credit agreement, as calculated in accordance with the provisions of the Limitation and Disclosure of Finance Charges Act, 1968 (Act No. 73 of 1968), the credit grantor shall pay the difference to the credit receiver.[Act 73 of 1968 has been re-named the Usury Act.]16. Valuation of goods
17. Power of court
18. Automatic interdict against removal or use of goods
19. Orders as to committal for contempt of court and emolument attachment and garnishee orders
No court shall make -20. Limitation on entry into credit agreements
When any administration order referred to in section 74(1) of the Magistrates’ Courts Act, 1944, has been granted to any person whose gross monthly income is less than R250, no credit grantor or his manager, agent or employee shall, as long as such administration order remains in force, without the consent in writing of the administrator concerned enter into any credit agreement with such person if the price payable in terms of that credit agreement exceeds R100.21. Jurisdiction
For the purposes of this Act in relation to civil proceedings, section 28(1)(d) of the Magistrates’ Courts Act, 1944, shall not apply unless the credit receiver concerned at the relevant time does no longer reside in the territory.22. Waiver of rights by credit receiver
The waiver by any credit receiver of any right under this Act, shall be invalid.23. Offences and Penalties
[The word “penalties” should not be capitalised.]Any person who contravenes or fails to comply with any provision of this Act, commits an offence and is liable to a fine not exceeding N$50 000 or an amount equal to the deposit payable as required by the Act, whichever amount is higher or to imprisonment for a period not exceeding two years, or to both such fine and such imprisonment.[Section 23 is substituted with amendment markings by Act 3 of 2016. The amendment markings are incomplete. There should be a comma afer the word “higher” to correctly set off the phrase “whichever amount is higher”.]24. Act or omission by managers, agents or employees
25. Evidence
26. Powers of inspectors
27. Repayment of certain money by credit grantor
Any repayment by any credit grantor in terms of this Act shall be made within 21 days after he has been requested therefor in writing by the credit receiver.28. Secrecy
No person shall in respect of any business undertaking disclose any information which came to his knowledge in the performance of his duties or functions under this Act, except -29. Repeal of laws
The laws specified in the Schedule are hereby repealed.30. Short title and commencement
This Act shall be called the Credit Agreements Act, 1980, and shall come into operation on the date on which the Credit Agreements Proclamation, 1981, of the Administrator-General is published in the Official Gazette.[section 30 substituted by AG 17 of 1981]History of this document
20 June 2016 this version
Amended by
Credit Agreements Amendment Act, 2016
27 May 1981
Amended by
Credit Agreements Proclamation, 1981
18 June 1980
04 June 1980
Assented to
Cited documents 4
Act 4
1. | Magistrates' Courts Act, 1944 | 982 citations |
2. | Usury Act, 1968 | 42 citations |
3. | Supreme Court Act, 1959 | 40 citations |
4. | Hire-Purchase Act, 1942 | 6 citations |
Documents citing this one 39
Gazette 17
Judgment 12
Act 5
1. | Magistrates' Courts Act, 1944 | 982 citations |
2. | Value-Added Tax Act, 2000 | 56 citations |
3. | Married Persons Equality Act, 1996 | 41 citations |
4. | Financial Institutions and Markets Act, 2021 | 6 citations |
5. | Second Hand Goods Act, 1998 | 4 citations |
Law Reform Report 3
1. | Aspects of Family Law: The Abolition of Marital Power and Equalization of Rights between Spouses | |
2. | Discussion Paper on Issues relating to the Insolvency Act, 1936 | |
3. | Report on Marital Property |
Discussion Paper 1
1. | Discussion Document on Consumer Protection |
Government Notice 1
1. | Basic Education Regulations, 2023 |