HBZ Bank Limited Language Policy as Required by the National Credit Act No. 34 of 2005

 

HBZ Bank Limited’s National Credit Act (NCA) Language Policy, as stipulated in Section 63 of the NCA and approved by the National Credit Regulator, is “English.” However, this policy is reviewed periodically as required to comply with the NCA and to cater to our evolving client base.

For further information, please contact our Central Credit Department.

Explanation of the National Credit Act No. 34 of 2005 (Effective from 1 June 2007)

 

The National Credit Act (NCA) is a South African law designed to provide enhanced consumer protection in credit application and approval transactions.

HBZ Bank Limited supports the implementation of the NCA and has registered with the National Credit Regulator as a Credit Provider.

Who Does the NCA Apply to as a Client of HBZ Bank Limited?

 

At HBZ Bank Limited, the NCA applies to all new loans and overdrafts granted or entered into, on, or after 1 June 2007. The NCA does not apply to companies, close corporations, and partnerships with an asset value or annual turnover exceeding R1 million.

This means the NCA will apply to all individuals and some small businesses that obtained a loan or overdraft facility from us, on, or after 1 June 2007.

The NCA does not apply to insurance policies, leases of immovable property, or transactions with a stokvel.

What About Loans and Overdrafts That Were Already in Place on 1 June 2007?

 

Loans and overdrafts that were in existence when the NCA came into effect, and which fall under the NCA, are subject to the Usury Act. Therefore, the current terms and conditions of your agreement remain unchanged.

How Will the NCA Benefit You?

 

• Applying for New Credit at HBZ Bank Limited on or After 1 June 2007: Before entering into the actual agreement, which falls under the NCA, we are required to provide you with a pre-agreement outlining the key features of the proposed agreement and a quotation of the costs. This pre-agreement acts as a written quote and is binding on us for five business days, allowing you five days to review and consider the offer
• When Applying for a Loan or Overdraft Facility That Falls Under the NCA: You will be required to provide a detailed statement of income, expenditure, assets, and liabilities, as well as details of other credit agreements. This will allow us to assess your ability to repay the credit amount

HBZ Bank Limited’s Decision to Approve or Decline a Credit Application

 

The NCA requires us to conduct a proper assessment of your ability to repay the requested borrowing, taking into account your income, existing financial situation, and debt repayment history.

• Should a reasonable assessment indicate your inability to repay the requested amount, we are obligated to decline the application to prevent you from becoming over-indebted. We will provide you with the reasons for our decision
• Should we approve your application and enter into a loan or overdraft credit agreement with you, the NCA requires us to report all newly granted credit agreements to a credit bureau and to provide monthly reports on the conduct of your account. We must ensure that the information submitted to the credit bureau is factually correct and accurate
• If we approve your application and you are married in community of property, you will be required to obtain your spouse’s written consent

Other Important Points

 

• You have the right to receive all communication from us, including an agreement, in clear and understandable language
• You have the right to access and inquire about your credit records and information held by the credit bureau through a credit bureau process, and to be notified before we report any negative information to the credit bureau
• Should you not be satisfied with our response, you have the right to complaint resolution by way of an alternate dispute resolution. You may file your complaint with the National Credit Regulator by submitting an application to the National Consumer Tribunal.

For this purpose, you may contact:

• The National Credit Regulator at +27 (11) 554 2700 or visit the website www.ncr.org.za
• The Credit Information Ombudsman at +27 (86) 166 2837
• The Banking Ombudsman at +27 (86) 080 0900 or visit the website www.obssa.co.za

If you are over-indebted and having difficulty meeting your repayments, the NCA provides for a debt counseling process where you can discuss your position with a state-appointed debt counsellor. The debt counsellor will extensively investigate your financial position, living expenses and debt obligations and will either reject your request (because they believe you can meet your current repayments) or they will make a recommendation to the credit providers as to how you can realistically repay them.

If accepted, a magistrate will approve the repayment plan, and you will be obliged to meet your new monthly payments. You may not borrow any additional money until you have repaid your credit providers.