Applicable to credit products

1. Interpretation

1.1 In this agreement clause headings are for convenience only and should not be used to interpret the agreement. 

1.2 Unless the context shows otherwise, the following expressions have the meanings assigned to them below and similar expressions will mean the same: 

1.2.1 Agreement – the respective credit product agreement that you enter into, which includes the application, quotation, terms and conditions and annexes to the agreement. The agreement includes the general terms and conditions applicable to credit products.

1.2.2 Application – the respective application for a credit product.

1.2.3 Business day – a day other than a Saturday or Sunday or a day that is proclaimed a public holiday in South Africa.

1.2.4 Credit – a deferral of payment of money that you owe us or a promise to defer the payment, or a promise by us to advance or pay money to you or on your behalf.

1.2.5 Credit product – a product governed by the NCA, which includes a personal loan, card, revolving credit facility, an overdraft facility, a vehicle finance loan or any other credit products that we offer.

1.2.6 Interest rate – the yearly interest rate as specified in the respective quotation, being a variable or fixed interest rate. Variable interest rates may change.

1.2.7 NCA – the National Credit Act, 34 of 2005.

1.2.8 Prime rate – the prime interest rate that we charge.

1.2.9 Prime rate factor – the percentage above or below the prime rate as stipulated in the quotation.

1.2.10 Principal debt – all amounts that you owe us in terms of the respective agreement.

1.2.11 Product terms and conditions – the terms and conditions that apply to the specific product that you have chosen.

1.2.12 Quotation(s) – the most recent written quotation(s) that we gave you for the respective credit product(s).

1.2.13 Repo rate – the repurchase rate published by the South African Reserve Bank.

1.2.14 Security – the security, if any, you gave us or that was given to us on your behalf in terms of the agreement.

1.2.15 We/us/our/Nedbank – Nedbank Limited (registration number 1951/000009/06) (and its successors in title and assigns), whose contact details and NCR registration number are stipulated in the quotation.

1.2.16 You/your – the client who applies for and enters into the agreement(s).

1.3 Any number of days prescribed will be determined by excluding the first and including the last day, or, if the last day falls on a day that is not a business day, the next business day.

2. Condition precedent

The agreement is conditional on our having performed a successful credit assessment in line with section 81 of the NCA.

3. Interest

3.1 We will charge interest on the outstanding debit balance and all amounts that you owe us or that we can claim in terms of the respective agreements at the rates stipulated in the quotation(s).

3.2 We will notify you in writing within 30 days of the prime rate change and stipulate the effective date.

3.3 Interest is calculated daily on the basis of a 365-day year, from the date that credit is granted and debited monthly in arrears.

3.4 We will charge interest for the period between the date that credit is granted to you and your first instalment due date, which is payable monthly in arrears. If you do not pay your instalments (default), we will charge further interest on overdue amounts (including fees, costs and charges) at the same rate as the interest rate that applies to the respective agreement, calculated and capitalised monthly.

4. Fees, costs and charges

4.1 You must pay all fees, costs and charges specified in the quotation. We may change any fees, costs or charges, but it will not exceed the prescribed NCA amount, and we will give you five business days’ notice.

4.2 We will charge an initiation fee 5 business days after you have used the facility for the first time i.e. transferred money from your facility to your Nedbank current account or credit card..

4.3 We will charge default administration charges for each default letter and the costs incurred to collect the debt if you default on any obligation in terms of the respective agreement..

4.4 You will be liable for all costs that incur due to your default, such as insurance premiums, legal costs charged on an attorney and client scale, counsel fees, tracing fees and collection charges. You agree to secure these costs with the security (if applicable) and to pay the costs on demand.

4.5 You agree that payment or reimbursement of any costs, fees, expenses or payouts includes the payment of value-added tax (VAT), if applicable.

5. Prepayment, settlement and allocation payments

You can make payments in advance or settle the agreement(s) at any time. Payments will be allocated to unpaid interest, then to unpaid fees and then to reducing the principal debt. The settlement amount is the outstanding capital plus unpaid fees and interest that you owe us or that we may claim up to the settlement date. If you want to settle a large agreement as defined in the NCA, you must give us three months’ notice in advance. If you do not give us notice, we will charge an early-termination fee.

6. Process default

6.1 If you are in default, we will notify you in writing and propose that you refer the agreement to a debt counsellor, an alternative dispute resolution agent, the consumer court or the ombudsman to resolve any disputes or develop and agree on a plan to remedy the default.

6.2 If the NCA applies to your agreement, you may resolve a complaint through alternative dispute resolution, file a complaint with the National Credit Regulator, make an application to the tribunal, or apply to a debt counsellor for assessment and debt review.

6.3 If you applied for debt review under section 86 of the NCA and the review is not finalised within 60 business days, we may send a notice terminating the debt review.

6.4 We can approach the court for an order enforcing the agreement if you have been in default for at least 20 business days and at least 10 business days have passed since the default letter or notice was delivered (this 10-day period may run at the same time as the 20-day default period) and you have not responded to the default letter or have rejected our proposal.

6.5 The nature and amount of your indebtedness, the interest rate as well as the terms and conditions will be determined and proved by a written certificate from any of our managers or accountants, whose position we do not need to prove. This certificate will, on the face of it, be binding on you as a liquid document. Unless you can prove that the amount in the certificate is incorrect, it is agreed that we may take any judgment or order based on the contents of the certificate.

7. Implications of default

7.1 If you are in default, you will pay default administration charges and collection costs.

7.2 We have the right to terminate the agreement and/or claim the full outstanding balance, including interest and other amounts owing to us, which may, at our discretion, become due and payable immediately.

7.3 If we take legal action due to your default, it could result in a court judgment, which may order the attachment of your salary or property and will result in a bad credit record.

7.4 Whenever we take any legal steps against you, we have the right to use microfilm and digital copies of any relevant records.

8. Application for debt review

8.1 You may apply to a debt counsellor to be declared overindebted. You may not apply for debt counselling if we have started legal action.

8.2 The debt counsellor will determine if you are overindebted and, if you requested a declaration of reckless credit, the debt counsellor will determine if any of the agreements are reckless.

8.3 The debt counsellor may reject your application or may recommend that you and your credit providers consider and agree on a debt rearrangement plan. If the debt counsellor finds that you are overindebted, he may issue a proposal recommending that the magistrate's court make an appropriate order. If you and each credit provider accept the recommendation suggested by the debt counsellor, the order must be recorded in the form of an order and, if all parties consent, it may be filed as a consent order by the debt counsellor. If the debt counsellor rejects the proposal, you may, with permission from the magistrate's court, apply directly to the magistrate's court for an appropriate order.

9. Address for notices

9.1 The debt counsellor may reject your application or may recommend that you and your credit providers consider and agree on a debt rearrangement plan. If the debt counsellor finds that you are overindebted, he may issue a proposal recommending that the magistrate's court make an appropriate order. If you and each credit provider accept the recommendation suggested by the debt counsellor, the order must be recorded in the form of an order and, if all parties consent, it may be filed as a consent order by the debt counsellor. If the debt counsellor rejects the proposal, you may, with permission from the magistrate's court, apply directly to the magistrate's court for an appropriate order.

9.2 Either party may change their physical or email address by notifying the other party via email. The email address to which you may send a change of address notification can be obtained from a branch or our contact centre.

9.3 A notice, order or other document that, in terms of the NCA, must be served on either party will have been properly served when it has been sent by email or delivered to that party or sent by registered mail to that party’s last known address. If you have not informed us of a change of your email or physical address, we will continue to use the last address given, even though the information may be incorrect.

9.4 You may send any legal notices to our domicilium citandi et executandi
The General Manager
Nedbank Group Legal
Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196

9.5 Any document received by a party will be adequate written notice or communication to that party, even though it may not have been sent to or delivered at the chosen address.

10. General

10.1 The agreement contains everything that has been agreed, and any change must be signed by both parties, unless stipulated otherwise.

10.2 If either party decides not to use a right in this agreement, it does not mean that they have given up (waived) that right.

10.3 If either party wish to waive a right in terms of this agreement, the waiver must be in writing.

10.4 Every undertaking in this agreement is separate from the others. If any clause is found to be unlawful or unenforceable, the other clauses will not be affected.

10.5 If there is a conflict between the provisions of this agreement and any provision of the security, the provisions of the agreement will apply.

10.6 We have the right to cede, assign and transfer any of our rights, obligations and security to a third party, which includes the right to delegate any of our obligations or security. If any cession, assignment or transfer constitutes a splitting of claims that requires your consent, you give your consent.

10.7 You are not entitled to cede, assign or transfer any right, title or interest in and to this agreement.

10.8 You must give us the information and documents that we request for yourself, your spouse, surety, guarantor or any other person who has provided security.

10.9 The English version of this agreement will prevail if there is a conflict between versions.

10.10 This product is not covered by the Corporation for Deposit Insurance.

10.11 At our option, any claim may be recovered in any magistrate's court with jurisdiction, and you consent to that jurisdiction. We have the right to approach a higher court.

Also see the Terms and Conditions applicable to a Revolving Credit Facility.

Applicable to revolving credit facility

1. Interpretation

In this agreement clause headings are for convenience only and should not be used to interpret the agreement.

Unless the context shows otherwise, the following expressions have the meanings assigned to them below and similar expressions will mean the same:

1.1 Available Revolving credit facility – a portion of the total revolving credit facility that has been made available to you immediately, and it will not exceed the total revolving credit facility.

1.2 Business day – a day other than a Saturday or Sunday or official public holiday.

1.3 Revolving credit facility account – the account opened with us and used for the transfer of funds to a Nedbank account.

1.4 Contract rate – the NCA maximum interest rate levied on unsecured credit facilities.

1.5 Credit limit – the credit limit that applies to the revolving credit facility.

1.6 Effective interest rate – the variable interest rate based on the contract rate applicable to the revolving credit facility, discounted by your personal risk profile where applicable. The effective interest may sometimes change.

1.7 Total Revolving credit facility – the revolving credit facility, which includes the available revolving credit facility that is operated through the transfer of funds in the facility to a Nedbank account.

1.8 You/your – The consumer who has entered into this agreement.

2. Revolving credit facility

2.1 You may only have one revolving facility at any given time.

2.2 The revolving credit facility account is a financial services product as defined in section 101 of the NCA.

2.3 We will only give you access to the revolving credit facility account after we have granted you a total credit limit.

2.4 The revolving credit facility is a financial services product as defined in the FAIS Act.

2.5 The revolving credit facility is a line of credit that you can access through transfers to a Nedbank account. You must have a qualifying credit card or current account to qualify and continue to access the revolving credit facility.

2.6 If you close your qualifying Nedbank credit card or current account, you will be unable to utilise your revolving credit facility but payment of the outstanding amounts in your revolving credit facility will still be your responsibility.

2.7 We will only charge the once-off initiation fee to your revolving credit facility 5 business days after you have used the facility for the first time i.e. transferred money from your facility to your Nedbank current account or credit card. If you choose to pay the initiation fee amount into your facility within 5 business days of using it, there will be no interest accruing on this fee.

2.8 The monthly service fee will be charged for months when the revolving credit facility is used. Used means you have an outstanding debit balance of R350 or more on at least one day during the month.

2.9 The agreement will become effective when the agreement is signed, subject to the completion of a successful credit assessment.

2.10 We may change the terms and conditions by giving you notice through statement messages or any other means, without your written consent. If you disagree with these changes, you may cancel the agreement before the terms and conditions become effective. If you do not cancel the agreement or if you use the facility after the changes have become effective, the updated agreement will be binding on you.

2.11 The total revolving credit facility will be given to you at our discretion. Further access to the remaining portion of the total revolving credit facility may be granted at our discretion, subject to your personal risk profile, which will be affected by your credit risk assessment and the way in which you manage your financial affairs, which Nedbank will continuously monitor.

2.12 If you do not utilise the facility for a period of 6 months, we may suspend, reduce or close the total revolving credit facility by giving you 10 business days’ notice.

2.13 The available revolving credit facility will be made available to you immediately and may not be exceeded, unless you have our written approval.

2.14 If you have asked in writing to have the total Revolving Credit Facility increased automatically from time to time, we may do so at our discretion.

2.15 If you take up an optional credit life insurance policy underwritten by Nedgroup Life Assurance Company Limited, the policy pays us the amount and interest that you owe on your account when the events as per your policy occurs.

3. Interest

3.1 Interest on a revolving credit facility account is charged as per Pre Agreement Statement and Quotation above. At our discretion, we may discount this rate based on your personal risk profile, which is affected by the way in which you conduct your financial affairs and our assessment of your credit risk (the effective interest rate). We may change the amount of interest we discount at our discretion.

3.2 The effective interest rate charged will change as your personal risk profile changes.

3.3 You will be liable to pay interest to us, calculated monthly on the daily balances outstanding, as set out on your quotation or statement. The interest rate will not exceed the maximum contract rate.

3.4 If you do not pay any amount owing to us on the due date, you will be liable for interest at the contract rate on the full overdue amount, which includes interest, fees and charges.

4. Fees, costs and charges

4.1 We have the right to debit your revolving credit facility with our standard fees and charges payable, as stipulated on your monthly statement. These include an initiation fee, credit service fee and a returned-payment fee, where applicable.

5. Statement, payment, deposits and settlement

5.1 We will send you a monthly statement in line with the delivery mechanism you have chosen, setting out, among other things, the balance and the minimum amount payable on or before the due date.

5.2 The minimum amount must reach us during banking hours on or before the due date. You will bear all risk for payments until they reach us.

5.3 If you dispute any entry on your monthly statement, you must notify us within 30 days of the date of the statement, so that we can investigate it.

5.4 If you do not receive monthly statements, you must inform us in writing. You cannot withhold payment if you have not received a monthly statement.

5.5 If money is paid into your revolving credit facility account, the proceeds will be credited to your account provisionally, and you will be able to access the money once the payment has been cleared.

5.6 All payments received will be credited to your revolving credit facility account and will be applied to unpaid interest charges, then to fees and charges we levy on your account, then to any legal costs, and finally to the principal debt. You may not attach conditions to any payment.

5.7 All payments must be made in South African rand without setoff or any deduction. If you make payment by debit order or automatic payment order, this will not detract from your obligation to make payment on the payment due date.

6. Default, termination or breach

6.1 If you exceed the credit limit, it will be a breach of this agreement, and all amounts that you owe to us or that we may claim will, at our option, become due and payable immediately without notice.

6.2 If you breach any term of this agreement, we have the right to close your account, cancel the total revolving credit facility and demand that you repay us the full amount outstanding, including interest.

6.3 If you are in default, we may suspend the revolving credit facility.

6.4 At our discretion and without reason, we may close the total revolving credit facility by giving you 10 business days’ written notice.

6.5 We may inform any person that we have closed your account or have cancelled your revolving credit facility, and you will not have any claim against us for doing so.

6.6 If you want to cancel the revolving credit facility, you must notify us in writing. The revolving credit facility will be cancelled on the day we receive your written notice. Any cancellation of the revolving credit facility will not affect your liability in terms of the agreement.

6.7 All amounts that you owe us or that we may claim from you in terms of this agreement will, at our option, become due and payable immediately without notice if you do not pay any sum or sums of money owing to or claimable by us on demand, from whatever cause arising. If you do not make payment on demand, it will be a breach of this agreement.

7. Insurance premium and commission

7.1 You have the option to take out Nedgroup credit life insurance. The insurance costs that you must pay are based on the premium specified in the quotation. The premium is variable, as it is determined by the highest outstanding balance during the statement month.

7.2 The commission payable to us in relation to the insurance policy equals 7,5% of the premium calculation referred to above.

Also see the General Terms and Conditions applicable to credit products.