What is a credit provider?

Understanding consumer rights and all the jargon surrounding credit and debt is important for consumers looking to fully understand their financial situation and all options open to them. The National Credit Act of South Africa has gone a long way to not only improve and thoroughly document the rights of consumers, but also to help ensure that consumers fully understand the agreements they are getting into.

In order to understand the new credit regulations and to know when they are engaging in a credit agreement, it is important that consumers know what a credit provider is.

A credit provider is defined in The National Credit Act of South Africa as the following:

  • A party that provides good or services in terms of an instalment agreement. This means that they deliver the service or goods now, but agree that repayment take place over a series of instalments. Examples include stores with store accounts, or lay-buy services.
  • A person that allows a consumer to pawn good for money or services. This can include a pawnbroker.
  • A party that provides credit to consumers. This means that they provide a consumer with money, under agreement that the money be paid back over a period of time with added interest. This includes banks that lend money, micro lenders, and credit card facilities.
  • A party that gives consumes a mortgage such as a home loan.

It also includes the lessor of a property. Therefore if a consumer rents their home, their landlord can be considered their credit provider.

According to The National Credit Act of South Africa, a broad definition of a credit provider is anyone that exchanges money, goods, or services under an agreement from the consumer that they will return the value of the goods, services, or money over an agreed upon period of time, with possible added interest...

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CREDIT ACT OF SOUTH AFRICA | What is a credit provider?