| (1) |
A debt intervention applicant may apply to the National Credit Regulator in the prescribed manner and form to have the debt intervention applicant declared over-indebted, if that debt intervention applicant has a applicant, and each credit provider listed in the application for debt intervention, must comply with section 86(5), with the necessary changes. total unsecured debt owing to credit providers of no more than R50,000, or such an amount as may be prescribed by section 171(2A)(b). |
| (2) |
The following credit agreements that form part of the total unsecured debt, do not qualify for debt intervention: |
| (a) |
A developmental credit agreement contemplated in section 10; and |
| (b) |
subject to section 85(c), any credit agreement where, at the time of the application for debt intervention, the credit provider under that credit agreement has proceeded to take the steps contemplated in section 130 to enforce that agreement. |
| (3) |
On receipt of an application contemplated in subsection (1), the National Credit Regulator must comply with section 86(4) and (6), with the necessary changes. |
| (4) |
A debt intervention applicant, and each credit provider listed in the application for debt intervention, must comply with section 86(5), with the necessary changes. |
| (5) |
The National Credit Regulator must, when considering an application contemplated in subsection (1), provide the debt intervention applicant with— |
| (b) |
access to training to improve that debt intervention applicant’s financial literacy. |
| (6) |
If the National Credit Regulator as a result of the assessment contemplated in subsection (3) reasonably concludes that— |
| (a) |
the debt intervention applicant does not qualify for debt intervention, the National Credit Regulator must reject the application; |
| (b) |
the debt intervention applicant does not qualify for debt intervention, but is nevertheless experiencing, or is likely to experience, difficulty satisfying all the debt intervention applicant’s obligations under credit agreements in a timely manner, the National Credit Regulator must recommend that the debt intervention applicant and the respective credit providers voluntarily consider and agree on a plan of debt re-arrangement; |
| (c) |
a credit agreement that formed part of the application may constitute reckless lending, an unlawful credit agreement or a credit agreement resulting from prohibited conduct, the National Credit Regulator must refer the credit agreement to the Tribunal for an appropriate declaration; |
| (d) |
the debt intervention applicant qualifies for debt intervention, and the obligations of the debt intervention applicant can be re-arranged within a period of five years or such longer period as may be prescribed, the National Credit Regulator must refer the matter with a recommendation to the Tribunal in the prescribed manner and form for an order contemplated in section 87(1A); or |
| (e) |
the debt intervention applicant qualifies for debt intervention, but the income and assets of the debt intervention applicant are insufficient to allow for the obligations of the debt intervention applicant to be re-arranged during the period contemplated in paragraph (d), the National Credit Regulator must refer the matter with a recommendation to the Tribunal in the prescribed manner and form for an order contemplated in section 87A. |
| (7) |
If the National Credit Regulator rejects an application as contemplated in subsection (6)(a), the debt intervention applicant, with leave of the Magistrate’s Court, may apply directly to the Magistrate’s Court, in the prescribed manner and form, for an order contemplated in section 87. |
| (8) |
If the National Credit Regulator makes a recommendation in terms of subsection (6)(b), and the debt intervention applicant and— |
| (a) |
each credit provider concerned accept that proposal, the National Credit Regulator must comply with section 86(8)(a) with the necessary changes; or |
| (b) |
a credit provider concerned did not accept the proposal, the National Credit Regulator must refer the matter to the Tribunal with the recommendation. |
| (a) |
If the National Credit Regulator refers an application for debt intervention in terms of subsection (6)(e), the National Credit Regulator must inform each credit provider listed in the application for debt intervention of such referral and invite such credit providers to make representations to the Tribunal by a specified date. |
| (b) |
A credit provider contemplated in paragraph (a) may submit written representations to the Tribunal in the prescribed form and manner, on or before the date so specified. |
| (a) |
If a debt intervention applicant is in default under a credit agreement that forms part of the application for debt intervention in terms of this section, the credit provider in respect of that credit agreement may, after the prescribed period, give notice to terminate the debt intervention in the prescribed manner to— |
| (i) |
the debt intervention applicant; and |
| (ii) |
the National Credit Regulator. |
| (b) |
No credit provider may terminate an application for debt intervention lodged in terms of this Act, if such application for debt intervention has already been filed in the Tribunal. |
| (11) |
If a credit provider who has given notice to terminate the debt intervention as contemplated in subsection (10) proceeds to enforce that agreement in terms of Part C of Chapter 6, the court or the Tribunal hearing the matter may order that the debt intervention resume on any conditions the court or Tribunal considers to be just in the circumstances. |
| (a) |
Subsection (6)(e) is effective for a period of 48 months from the date on which it becomes operational. |
| (b) |
The Minister must review the impact of section 87A and must, no later than 36 months after subsection (6)(e) becomes operational, table a report in the National Assembly setting out the findings of that review. |
[Section 86A inserted by section 13 of Notice No. 1081, GG 42649, dated 19 August 2019]
Statistics Act, 1999
