MFSA: Buy Now, Pay Later operating in a regulatory void, putting millions at risk
BNPL’s credit-like features require the same statutory protections under the National Credit Act, says MicroFinance South Africa.
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Buy now, panic later: a legal deep dive into SA’s payment revolution
This analysis examines whether BNPL falls under the National Credit Act or the FAIS regime, spotlights enforcement gaps, and considers how the pending COFI Bill could plug systemic vulnerabilities.
MFSA flags upfront fees as a key indicator of credit fraud
Another warning sign of a scam is a request to complete an application form sent via email, not on the provider’s website or app.
Court clarifies NCA application to suretyships in vehicle finance case
Sureties cannot rely on the National Credit Act if the principal debt falls outside its scope.
Credit provider must engage ‘meaningfully’ with debtor – judgment
The High Court refuses Ford Credit’s request to repossess a vehicle, saying it did not fairly consider the debtor’s proposed repayment arrangement.
Bundled credit insurance ruled unlawful for consumers who can’t claim
Selling credit life insurance with retrenchment and disability cover to pensioners and disabled persons – who cannot meet the claim requirements – breaches the National Credit Act.
SCA clarifies pawnbroker’s rights to proceeds from asset sales
The judgment addresses several aspects of the National Credit Act, including the obligation to register as a credit provider and permissible interest charges.
Broker’s acknowledgment of debt falls outside National Credit Act
The High Court overturns a lower court’s decision in favour of a financial adviser whose commissions were clawed back.
NCR issues guidelines for credit providers on debt counselling process and deductions
The changes, which include stricter compliance rules and clearer protocols for stopping debit orders, are designed to streamline the process and protect consumers.
Incidental credit providers excluded from FICA registration
The revised draft of PCC 23A brings further clarity to the interpretation of credit providers under the Financial Intelligence Centre Act.
Judge rebukes bank for ‘high-handed’ approach to credit agreement reinstatement
Credit providers must quantify their reasonable enforcement costs promptly to allow for an agreement to be reinstated.
Ruling clarifies separate agreement fees under the National Credit Act
Fees in separate agreements between a service provider and consumers are not automatically illegal, provided they are kept separate from the fees regulated under the credit provider’s agreement.
South Africans ‘ignore’ debt woes: survey highlights growing financial strain
The Money Stress Tracker survey finds that consumers’ response to financial strain is long on intent but short on action.
‘Outdated’ pricing structure is harming microlenders and consumers, says MFSA
The most recent revision to the maximum interest rates and fees that credit providers can charge was in November 2015.
Ombuds will handle cases involving disputes of fact or law and award compensation
And the requirement to accept oral complaints applies to financial institutions, not only ombuds.
SCA ruling highlights the legal pitfalls of loans among ‘friends’
The Supreme Court of Appeal’s recent decision underscores the critical importance of understanding ‘transactions at arm’s length’ under the National Credit Act.
MBSE’s NCA courses: three ways for credit providers to comply
Moonstone Business School of Excellence’s engaging and interactive National Credit Act courses are tailored for industry professionals.
