National Credit Act And Lease Agreements
When the owner sought protection from the NCA, he was shocked. The house of finance was indifferent to his arguments about the NCA. He then learned of a 2013 Supreme Court of Appeal ruling that, according to the NCA`s definition of „leasing,“ only agreements in which ownership is transferred at the end of the agreement are covered by the NCA. Although the businessman believed that ownership of the photocopier would eventually be transferred to his company, the terms of the agreements expressly provided otherwise – so he had no protection from the NCA and was responsible for the R15,000. He might have been more fortunate to seek protection under the Consumer Protection Act, which applies to such agreements, but it would not have been easy. The consumer must respond fully and truthfully to all requests for information from the creditor in the context of the credit check. If you think you are financially over-indebted, please contact your credit provider and request an informal debt review. In the light of the above, I would like to give a practical example of the examination of whether it is a fixed-price lease which is not regulated by the NCA or a so-called extended credit agreement under Article 8(4)(f) NCA: some leases provide, not for variable rents in the sense of a variable bank interest rate, but for an annual increase in rent of a fixed percentage of 15% per year. Is this still a common law tenancy that is not regulated by NCA, or do we have a „variable“ lease that probably falls under s 8 (4) (f)? In most cases, the tenant is not aware of this annual increase. But let`s say he or she was informed at the time, is this form of lease or not a credit agreement regulated by the NCA? The Usury Act regulated the operations of leasing, credit and lending of money. If you are about to conclude a rental or rental agreement for movable property, for example. B a printer, make sure you know how the National Credit Agreement Act (NCA) deals with such agreements.
The catch here is that a lease is not always a „lease“ within the meaning of the law.