The introduction of the NCA has made the issue of statements of accounts an obligation of the credit provider. Consumers have to be issued with account statements at regular intervals:

• Once every two months in the case of an instalment agreement, lease or secured loan. 
•  Once every six month in the case of a mortgage agreement.
• Once every month in the case of all other agreements.

Though the consumer and the credit provider may negotiate about lowering the frequency of statements of agreements other than mortgage agreements, three months is the maximum length of time allowed between the issue of one statement and the next.

In terms of the NCA consumers are allowed to request statements from credit provider that will indicate:

• The consumer’s current balance owing.
• Amounts that were debited or credited during a specific period.
• Any amount/s overdue and the date/s on which it became due.
• The amount payable and the date that payment was due.

Consumer requests

The NCA also allows the consumer to request this information in terms of any period, whether going back one year or even longer. The consumer may, by law, request such a statement once every three months. Consumers may only request a statement reflecting the information in respect of an account that was closed for a period of three years after the closure of the account.

Content of account statements

It has to be noted that the content of account statements is prescribed by the NCA.

Small agreements need to reflect specific prescriptive entries that appear in the Regulations to the NCA. These entries are:

• The name of the consumer.
• The name and trading name of the credit provider.
• The postal address of the consumer.
• The physical address of the credit provider.
• The postal address of the credit provider.
• The telephone number of the credit provider.
• The National Credit Regulator registration number of the credit provider.
• The identity number of the consumer.
• The principal debt in terms of the credit agreement.
• The account number of the credit agreement.
• The annual rate of interest associated with the credit agreement.
• The start date of the credit agreement.
• The amount of monthly/weekly/fortnightly instalments.
• The end date of the agreement.
• The remaining instalments due.
• The original term of the credit agreement.
• The opening balance of a specific period.
• Debits and credits in terms of the agreement.
• All payments received by the credit provider.
• Fees levied.
• Interest that accrued.
• Insurance costs in terms of the credit agreement.
• Collection costs in terms of the agreement.
• Default administration costs levied in terms of the agreement.
• Legal fees in terms of the credit agreement.
• An age analysis of payments due for 30/60/90+ days.
• The amount in arrears.
• The outstanding balance in terms of the credit agreement.
• Information in terms of how payment to the credit provider may be made.

Disputes

If a consumer raises a dispute about entries on an account statement, the management of credit agreement repayments may be negatively effected. The NCA requires that the consumer raises a dispute about account entries in writing and deliver this to the credit provider.

Such a dispute requires the credit provider to reply in writing to the consumer.

A dispute regarding account entries prevents the credit provider from starting enforcement proceedings until the query of the consumer is answered. Consumers may also approach the Credit Tribunal with disputes regarding account statements. In the case of the latter, plus situations where a matter is subject to alternative dispute resolution procedures, the credit provider may also be prevented from starting enforcement proceedings.

Enforcement proceedings are prescribed by the NCA. In terms of Section 130 the credit provider may not approach a Court for debt enforcement while the matter was attended to in terms of debt counselling or alternative dispute resolution. A Court will also not decide on the matter under the following circumstances:

• If property has been surrendered and that property has not yet been sold.
• If the consumer agreed to approach a debt counsellor, alternative dispute resolution agent, consumer court or an ombudsman.
• If the consumer agreed to plan of repayments and is keeping to that plan.
• If the consumer brought payments under the credit agreement up to date.

The credit provider has to deliver a notice to the consumer ten business days before taking the next step. If the consumer does not respond or rejects the credit provider’s proposals, a Court may be approached for debt enforcement. Such debt enforcement may be to surrender property in terms of a credit agreement or to enforce remaining obligations of the consumer if property had been sold earlier.

Compuscan Academy has developed a learning programme, called ‘Credit Control and Collections’, on this subject. Please click here to view the course brochure.  If you want to learn more about this topic, please contact Compuscan Academy at Tel: 021 888 6000 or e-mail us at   This e-mail address is being protected from spambots. You need JavaScript enabled to view it