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📄 Comprehensive Guidelines for the Form and Content of Statements of Account (004/2024)
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    • Comprehensive Guidelines for the Form and Content of Statements of Account (004/2024)

    Learn about the official guidelines for the form and content of statements of account as per the National Credit Act 34 of 2005. Updated for September 2024, these guidelines help ensure compliance for small, intermediate, and large credit agreements.

    Understanding the Guidelines for the Form and Content of Statements of Account (004/2024)

    Introduction

    The National Credit Regulator (NCR) plays a key role in guiding the credit industry in South Africa. To maintain transparency and fairness in credit agreements, the NCR has issued updated guidelines on the form and content of statements of account under the National Credit Act 34 of 2005. These guidelines, published in September 2024, outline the necessary requirements for small, intermediate, and large credit agreements to ensure they meet the standards set by the Act.

    Purpose of the Guidelines

    The primary goal of these guidelines is to provide a clear framework for credit providers when preparing statements of account for credit agreements. This ensures that all credit transactions are accurately represented, and consumers are fully informed about the details of their agreements.

    Key Statutory Provisions

    The guidelines draw on specific sections of the National Credit Act to define how statements of account should be structured:

    • Section 109 (2): Requires that statements for small credit agreements must follow a prescribed format.
    • Section 109 (3): Allows flexibility for intermediate and large agreements, where the statement can either be in the prescribed format or a customized form that meets the NCR’s standards.
    • Section 9 (2-4): Defines the distinctions between small, intermediate, and large credit agreements based on factors like transaction type and credit limits.

    Small Credit Agreements

    For small credit agreements, the statement of account must adhere strictly to Form 26 and include specific details:

    1. Credit Provider Information:
      • Name and registration number.
      • Contact details, including physical and postal addresses.
      • Bank account details for payments.
    2. Consumer Details:
      • Name and account/reference number.
      • Consumer's address.
    3. Account and Agreement Information:
      • Principal debt and annual interest rate.
      • Instalment amount, frequency, and outstanding balance.
      • Information on any arrears.
    4. Transaction Summary:
      • Record of payments, fees, interest, insurance costs, and any other charges.
    5. Detailed Transaction History:
      • Opening balance, transaction dates, descriptions, amounts, and closing balance.

    The statement must avoid including costs not specified in regulation 35, such as premiums for funeral policies, membership fees, or value-added services.

    Intermediate and Large Credit Agreements

    The approach for intermediate and large agreements is more flexible. While there is no specific form mandated, credit providers must ensure that their statements:

    • Comply with sections 101 and 102 of the Act.
    • Avoid prohibited charges listed in section 100 of the Act.
    • Include only relevant costs as permitted by the NCR guidelines.

    Prohibited Charges

    To protect consumers, the guidelines emphasize that statements must not contain unauthorized charges. Some examples of costs that are not allowed include:

    • Funeral policy premiums.
    • Membership or club fees.
    • Additional value-added services not related to the credit agreement.

    Ensuring Compliance

    For credit providers, adhering to these guidelines is essential to avoid penalties and ensure transparency with consumers. By following the NCR's directives, credit providers can help create a more trustworthy and fair credit environment.

    For More Information

    If you have any questions regarding these guidelines, you can reach out to the Executive Legal Unit at ExecutiveLegalUnit@ncr.org.za.

    Disclaimer

    The NCR has taken every precaution to ensure the accuracy of these guidelines. However, they cannot be held liable for any damages resulting from the use of this information.

    Conclusion

    These guidelines for the form and content of statements of account are crucial for maintaining a clear and consistent credit system. Credit providers should closely follow these rules to ensure compliance with the National Credit Act and uphold consumer rights.


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