| (i) |
the goods are in the credit provider’s possession, require the credit provider to sell the goods; or |
| (ii) |
otherwise, return the goods that are the subject of that agreement to the credit provider’s place of business during ordinary business hours within five business days after the date of the notice or within such other period or at such other time or place as may be agreed with the credit provider. |
| (2) |
Within 10 business days after the later of— |
| (a) |
receiving a notice in terms of subsection (1)(b)(i); or |
| (b) |
receiving goods tendered in terms of subsection (1)(b)(ii), |
a credit provider must give the consumer written notice setting out the estimated value of the goods and any other prescribed information.
| (3) |
Within 10 business days after receiving a notice under subsection (2), the consumer may unconditionally withdraw the notice to terminate the agreement in terms of subsection (1)(a), and resume possession of any goods that are in the credit provider’s possession, unless the consumer is in default under the credit agreement. |
| (a) |
responds to a notice as contemplated in subsection (3), the credit provider must return the goods to the consumer unless the consumer is in default under the credit agreement; or |
| (b) |
does not respond to a notice as contemplated in subsection (3), the credit provider must sell the goods as soon as practicable for the best price reasonably obtainable. |
| (5) |
After selling any goods in terms of this section, a credit provider must— |
| (a) |
credit or debit the consumer with a payment or charge equivalent to the proceeds of the sale less any expenses reasonably incurred by the credit provider in connection with the sale of the goods; and |
| (b) |
give the consumer a written notice stating the following: |
| (ii) |
the gross amount realised on the sale; |
| (iii) |
the net proceeds of the sale after deducting the credit provider’s permitted default charges, if applicable, and reasonable costs allowed under paragraph (a); and |
| (iv) |
the amount credited or debited to the consumer’s account. |
| (6) |
If an amount is credited to the consumer’s account and it exceeds the settlement value immediately before the sale, and— |
| (a) |
another credit provider has a registered credit agreement with the same consumer in respect of the same goods, the credit provider must remit that amount to the Tribunal, which may make an order for the distribution of the amount in a manner that is just and reasonable; or |
| (b) |
no other credit provider has a registered credit agreement with the same consumer in respect of the same goods, the credit provider must remit that amount to the consumer with the notice required by subsection (5)(b), and the agreement is terminated upon remittance of that amount. |
| (7) |
If an amount is credited to the consumer’s account and it is less than the settlement value immediately before the sale, or an amount is debited to the consumer’s account, the credit provider may demand payment from the consumer of the remaining settlement value, when issuing the notice required by subsection (5)(b). |
| (a) |
fails to pay an amount demanded in terms of subsection (7) within 10 business days after receiving a demand notice, the credit provider may commence proceedings in terms of the Magistrates’ Courts Act for judgment enforcing the credit agreement; or |
| (b) |
pays the amount demanded after receiving a demand notice at any time before judgment is obtained under paragraph (a), the agreement is terminated upon remittance of that amount. |
| (9) |
In either event contemplated in subsection (8), interest is payable by the consumer at the rate applicable to the credit agreement on any outstanding amount demanded by the credit provider in terms of subsection (7) from the date of the demand until the date that the outstanding amount is paid. |
| (10) |
A credit provider who acts in a manner contrary to this section is guilty of an offence. |
Special Investigating Units and Special Tribunals Act, 1996
