Unsecured Credit Terms and Conditions

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  1. INTRODUCTION
    1. These general terms and conditions will apply to all credit agreements entered into between you and Bayport Financial Services 2010 (Proprietary) Limited (the “credit provider”).
    2. These terms and conditions, together with the Pre-agreement Statement and Quotation (“Quotation”), the application form and any other documentation signed by you or verbally agreed with you and digitally recorded, will be the whole agreement between you and the credit provider.
    3. The Credit Provider may agree to give you a number of loans in terms of a product which is intended to assist you with your cash flow. You understand that each time the credit provider advances capital to you, each advance will be made in terms of a separate credit agreement, with these terms and conditions applying equally to each advance.
  2. PRE-AGREEMENT/QUOTATION
    1. Prior to you concluding a credit agreement with the credit provider, the credit provider will provide you with a Pre-Agreement Statement and Quotation. You will be given 5 (five) working days to decide if you want to enter into a credit agreement with the credit provider on the terms set out in the Pre-Agreement Statement and Quotation and these terms and conditions.
    2. Where your financial or personal circumstances or the information provided by you changes after the Pre-Agreement Statement and Quotation is given to you, the credit provider may refuse to enter into the credit agreement or may provide you with a revised Pre-Agreement Statement and Quotation. You warrant that all information provided by you to the credit provider is true and correct and is sufficient for the credit provider to conduct an affordability analysis.
  3. APPLICATION AND APPROVAL
    1. If you decide you wish to enter into a credit agreement on the terms and conditions set out in the Pre-agreement Statement and Quotation and these terms and conditions, your signature of the Pre-Agreement Statement and Quotation will constitute an offer by you to the credit provider to enter into such an agreement which may be accepted or declined by the credit provider at its discretion.
  4. PAYMENT OF THE LOAN
    1. UNSECURED CREDIT AGREEMENTS
      1. If the credit provider accepts your offer, the credit provider will pay the capital either into the bank account or to a third party chosen by you in the Pre-Agreement Statement and Quotation and a credit agreement between you and the credit provider will come into being. The credit provider will not be responsible for any damage or loss caused if the bank account details provided by you are incorrect.
    2. DEVELOPMENTAL CREDIT AGREEMENTS
      1. If the credit provider accepts your offer, the credit provider will pay the capital amount into the bank account of a third party chosen by you in the Pre-Agreement Statement and Quotation for purposes of providing the services set out in clause 4.2.2.1 or 4.2.2.2 below, and on presentation of an invoice by the third party (“Service Provider”) and a credit agreement between you and the credit provider will come into being. The credit provider will not be responsible for any damage or loss caused if the bank account details provided by you are incorrect.
      2. You have specified the purpose for which you require the loan and you agree that the loan amount may only be used for the purpose set out in your application form, which may be either:
        1. That you want to:
          1. make additions and / or
          2. make alterations and/or
          3. repair
        2. a house in respect of which either you, your dependent, or your spouse, as defined in the matrimonial property Act, resides.
        3. for purposes of paying for school fees, tuition fees for tertiary education and goods related to and for educational purposes.
      3. Prior to settling the invoice from the Service Provider, The Credit Provider may, but is not obliged, to follow-up with the Service Provider to ensure that the Service Provider has duly performed his/her/its obligations under the relevant agreement concluded with you. You however remain responsible for ensuring that the Service Provider has duly performed the services or delivered the goods for which you have been invoiced prior to The Credit Provider making the payment to the Service Provider.
      4. The Credit Provider will make the payment of the Loan Amount, as set out in the Pre-Agreement Statement and Quotation to the Service Provider, and as directed by the Client, but will not do so as the Client’s agent. The Credit Provider will pay the amount reflected on the invoice issued by the third party supplier or Educational institution, approved by The Credit Provider.
      5. If you require the loan for purposes set out in clauses 4.2.1 and 4.2.2 and you direct The Credit Provider to pay the loan amount to third party supplier or educational institution, you accept that the Supplier or Educational institution will not be permitted to refund any of the funds paid to it by The Credit Provider to the client. The unused funds will be transferred back to The Credit Provider and credited against the Client’s Bayport account.
      6. The Applicant must make consecutive monthly payments to the Credit Provider that are due and payable in terms of this Loan Agreement on or before the payment date without any deductions or demand.
  5. TERM OF THE LOAN AND NUMBER OF INSTALMENTS
    1. The number of instalments and term of the loan (as set out in the Pre-Agreement Statement and Quotation) has been calculated on the basis that you will make full payment of all instalments on the due dates.
    2. If you do not pay all instalments on the due date, The Credit Provider will be entitled, without prejudice to any other rights it may have, to extend the term of the agreement to collect any outstanding amounts and may during this extended term, charge monthly service fees and credit life insurance premiums.
  6. INTEREST
    1. The interest rate will be fixed for the full period of the credit agreement.
    2. Bayport shall be entitled to charge interest daily. Interest will however only be added to the deferred amount (capital amount) once during a month.
    3. Additional interest, being arrears interest, will be charged on all overdue amounts at the lending rate in terms of the credit agreement and the total amounts of interest, service fees and credit life insurance premiums reflected in the Pre-Agreement Statement and Quotation will increase accordingly.
    4. Any loan granted in terms of a credit agreement entered into by you will be repayable to the credit provider together with the fees, charges and interest reflected on the Pre-Agreement Statement and Quotation given to you.
  7. COST OF CREDIT
    1. The credit provider will be entitled to charge and capitalise any charges permissible by the NCA to the maximum extent permitted by the NCA including, without limitation, service fees, credit life insurance premiums (as contemplated in 18), default administration charges and collection costs during –
      1. the term of the loan (as set out in the Pre-Agreement Statement and quotation);
      2. any period for which the loan may be extended; and
      3. after judgment is obtained against you, until the total amount outstanding is paid in full.
    2. Any tracing fees (calculated in accordance with the Magistrate Court Rules) incurred by the credit provider will be recovered from you. All attorney’s or registered debt collector costs will also be recovered from you on the attorney and client scale.
    3. This clause shall survive termination of this agreement for any reason whatsoever.
  8. RENUNCIATION OF BENEFITS
    1. You undertake not to rely on the legal defences that the debt has been pardoned by the credit provider or that the credit provider agreed not to sue.
  9. CERTIFICATE
    1. A certificate of balance signed by any manager of the credit provider may be used as proof of any outstanding amount.
  10. EARLY SETTLEMENT
    1. You may prepay any amount owed to the credit provider under the credit agreement at any time and without notice or penalty.
    2. You may settle the agreement early by paying the settlement amount.
    3. The settlement amount is the total of the following amounts:
      1. the unpaid balance of the principal debt at the time of termination; and
      2. the unpaid interest charges and all other fees and charges payable by you to the credit provider up to the settlement date.
  11. CONSUMER’S RIGHT TO TERMINATE THE AGREEMENT
    1. You may terminate the credit agreement at any time by paying the settlement amount to the credit provider in accordance with clause 10.
  12. ALLOCATION OF PAYMENTS RECEIVED
    1. The credit provider will credit each payment (whether such payment is a full instalment, partial instalment or payment of a settlement amount) made by you under the credit agreement as of the date of receipt of payment, as follows:
      1. firstly, to satisfy any due and/or unpaid interest charges;
      2. secondly, to satisfy any due and/or unpaid fees or charges (including, without limitation, credit life insurance premiums); and
      3. thirdly, to reduce the amount of the principal debt.
  13. STATEMENTS
    1. Your election with regards to the delivery of statements as recorded in the application form will apply in respect of the delivery of statements of account.
  14. CONFIDENTIALITY CONSENT
    1. Except as provided for in this clause, the credit provider will not disclose any of your information without your express consent, unless such disclosure is lawful or is required by law.
    2. You confirm that the credit provider may transmit to any credit bureau data about your application for and the granting of credit to you pursuant to a credit agreement .The credit provider will transmit to any credit bureau notice of any non-compliance by you with the terms and conditions of this credit agreement after giving you 20 (twenty) business days’ notice of its intention in this regard. The names and contact details of the credit bureaux to which the credit provider transmits information are provided below:
      1. TransUnion ITC – telephone: 0861 482 4820, email: [email protected];
      2. Experian – telephone: 0861 110 5665; email: [email protected];
      3. XDS – telephone: 011 645 9100; email: [email protected];
      4. Compuscan – telephone 0861 5141 31; email: [email protected]
    3. The credit bureaux to which the credit provider transmits information will provide a credit profile and possibly a credit score on the creditworthiness of you to third parties as provided for in the NCA.
    4. You have the right in terms of the NCA to contact the credit bureaux, have its credit record disclosed and correct inaccurate information.
    5. Further, the credit provider may obtain from and may disclose any fraudulent information and/or activity by you to the South African Fraud Prevention Services (“SAFPS”) and/or any similar organisation. In addition, you consent to the credit provider furnishing information about you to the Bayport group of companies which relates to or has a bearing on any suspected or proven fraudulent activity. The Credit Provider reserves the right to refer any instance of proven fraud to the SAPS and, where possible, will actively seek to prosecute those responsible.
    6. You hereby direct your bank to release any financial information that the credit provider may require relating to your bank accounts. This information includes, but is not limited to:
      1. confirmation that you hold a banking account;
      2. confirmation of the banking account number, the branch at which the account is held and the type of account;
      3. the time period for which the banking account has been active;
      4. a statement relating to transactions that were conducted through the banking account;
      5. the balance and turnover relating to the banking account;
      6. the transactional history relating to the banking account;
      7. an item analysis and reconciliation report indicating the date on which the funds are withdrawn from or deposited into the banking account; and
      8. information relating to any other banking accounts held at the bank.
    7. You consent to the credit provider contacting your employer in order to obtain or confirm any details relating to your employment which the credit provider deems relevant in protecting its rights in terms of this agreement. Among other things, the credit provider may confirm the status of your employment, remuneration, date on which you get paid and the bank account into which your remuneration is paid.
    8. You further consent to the credit provider obtaining any of your personal information or other information it deems relevant including information relating to your financial status, banking details, credit record, payment history, residential and work address from any third party.
    9. Should you have elected to receive marketing material from the credit provider, you consent to the credit provider or any third party appointed by the credit provider marketing to you in the manner and form selected by you even after this agreement has been terminated.
    10. In addition, various third party service providers render services to the credit provider including, without limitation, independent sales agents and service providers that render information technology services, bureaux services, tracing services, account management services, marketing services, research services, hosting of information, email and websites, printing of documents and other such services. In order for those third parties to render those services, the credit provider may have to disclose certain of your personal information to such third party service providers. By signing this agreement, you consent to the credit provider disclosing and/or transferring and/or hosting your personal information to or with third parties appointed by or on behalf of the credit provider to render services to it. You also consent to such third parties using your personal information to perform services to the credit provider.
  15. NON-VARIATION
    1. No change to these terms and conditions nor any waiver of rights nor any agreed cancellation will be of force or effect unless recorded in writing and signed by or on behalf of both the credit provider and you, provided that nothing in this agreement prohibits or restricts –
      1. any method or process of amending a credit agreement as contemplated in the NCA; and/or
      2. the credit provider from unilaterally amending this agreement as permitted in terms of the NCA; and/or
      3. a change in the commencement date and last date for payment (as quoted in the pre-agreement statement and quotation) if –
      1. your salary date differs from the dates quoted (in which event the payment dates shall be amended to coincide with the date on which your salary is paid to you); and/or
      2. if you default on any repayment (in which event the last payment date may (in The Credit Provider’s sole and absolute discretion) be extended to a later date).
  16. CESSION
    1. The credit provider has the right to transfer all its rights in terms of this agreement to a third party. W here such transfer is effected, unless instructed otherwise, you must continue to pay the original credit provider in its capacity as agent for the third party.
  17. ADDRESSES (DOMICILIA CITANDI ET EXECUTANDI) – ALL NOTICES
    1. All notices by either party to the other must be in writing and sent by registered post or delivered by hand to:
      1. the credit provider at: Bayport House23A 10thAvenueRivonia.
      2. you at your physical address as reflected in the Pre-Agreement Statement and Quotation for the purposes of sending notices.
    2. Where notices are delivered by you to the credit provider, signature acknowledging the date and fact of receipt must be obtained. The credit provider and you choose your respective addresses as given above (or any changed address within the Republic of South Africa notified to the other in the same way) as the place where all documents, notices, legal letters and other legal process may be sent or delivered and given effect.
    3. The credit provider will give you a copy of the signed Pre-Agreement Statement and Quotation to keep.
  18. CREDIT LIFE INSURANCE COVER
    1. As a condition for the grant of the loan you are required to take out a credit life insurance policy. This requirement is a material term of the agreement. You can take out an insurance policy underwritten by Guardrisk Life Limited(“Guardrisk”) which provides death (outstanding balance), permanent (outstanding balance) and temporary disability (maximum 6 (six) months’ instalment cover), retrenchment (maximum 6 (six) months’ instalment cover) and dread disease benefits, subject to the terms, conditions and exceptions of this policy. A copy of the policy will be given to you with the Pre-Agreement Statement and Quotation. You have 30 (thirty) days to either accept or refuse the policy.
    2. Should you not wish to take insurance with Guardrisk, you must provide and cede (on the basis set out in 18.5) a policy of similar cover and value to the credit provider and which is acceptable to the credit provider.
    3. If you accept the Guardrisk Credit Life Insurance policy, you declare that you have been made aware of your entitlement of your freedom of choice regarding your application for credit life insurance and that you were able to exercise your freedom of choice as to which insurer provides the credit life insurance product, and were not subject to any coercion or inducement as to the manner in which you exercised that freedom of choice.
    4. You, the life insured, understand, agree and, where applicable, declare that:
      1. any doctor, other person or institution is authorised before and after your death to disclose any information concerning your health, including the results of any blood tests, to the Insurer;
      2. the credit provider (or its nominee) shall be entitled in its sole and absolute discretion (but shall not be obliged) to pay the monthly credit life insurance premium to the insurer, notwithstanding that the credit provider has not, at that time, received payment from you in respect of the monthly credit life insurance premium. The credit provider shall be entitled to recover the costs of such monthly credit life insurance premiums from you by including the amount so paid in the monthly instalment payable by you in terms of this agreement;
      3. you will comply with all the terms, conditions and warranties of any credit life insurance policy effected pursuant to this agreement until such time as all amounts outstanding by you under this credit agreement have been paid in full; and
      4. you will not, whilst there is an amount outstanding by you under this agreement, without the credit provider’s prior written consent, cancel, vary or agree to any cancellation or variation of any of the terms, conditions and warranties of any credit life insurance policy, nor will you release or agree to release the insurer in terms of any such policy from its obligations thereunder.
    5. You hereby cede, transfer, assign and make over to the credit provider all your right, title and interest in the credit life insurance policy to the credit provider, including, without limitation, the right to receive any payment from the insurer in terms of such policy, and you undertake, upon demand, to deliver such insurance policy to the credit provider. The credit provider shall be obliged to return each such policy to you and hereby cedes its right, title and interest therein back to you with effect from the date on all amounts outstanding under this agreement (regardless of whether such amounts are due and payable) have been repaid by you to the credit provider in full, provided that all claims made or to be made under such credit life insurance policy in respect of causes that arose whilst you owed any amount under this agreement have been paid by the insurer.
    6. When an insured event occurs in terms of the credit life insurance policy, the credit provider shall have the sole and exclusive right to accept payment of, compromise or agree to a settlement with the insurer or underwriter of the amounts payable under the policy. All payments under the policy shall be made to and received by the credit provider, upon receipt of which the credit provider shall be obliged to credit the amount of such payment against any amount outstanding by you to the credit provider in terms of this agreement.
    7. If the credit life insurance policy should lapse, expire or terminate for any reason whatsoever whilst there is an amount outstanding under this agreement, the credit provider shall be entitled in its sole and absolute discretion (but shall not be obliged) to insure your life in order to mitigate credit risk. The credit provider shall be entitled to recover the costs of these premiums from you. You have the right to offer your own, alternative credit cover in these circumstances provided that it is reasonably acceptable to the credit provider.
    8. It is recorded for the sake of clarity that –
      1. in the collection of premiums, the credit provider (or its nominee) does so as agent of the insurer and not as your agent; and
      2. a related party of the credit provider has a financial interest in a related party of Guardrisk which enables the credit provider’s related party to benefit from the overall performance of the credit life insurance scheme.
  19. CREDIT PROVIDER’S RIGHT TO TERMINATE THE AGREEMENT
    1. Where you are in default, the credit provider may terminate the credit agreement before the time, provided it does so in compliance with the provisions of the NCA relating to enforcement and termination.
    2. If an event of default occurs the credit provider:
      1. may propose that you refer the credit agreement to a debt counsellor, alternative dispute resolution agent, consumer court or ombud with jurisdiction, with the intent that the credit provider and you resolve any dispute under the credit agreement or develop and agree on a plan to bring the payments under the credit agreement up to date; and
      2. subject to the NCA, may commence legal proceedings to enforce the credit agreement after (i) providing the notice referred to in clause 19.2.1 or terminating the review in terms of section 86(10) of the NCA (as the case may be); and (ii) meeting any further requirements set out in section 130 of the NCA.
    3. An event of default will have occurred where:
      1. you fail to make payment of any amount payable under this agreement on the due date thereof;
      2. your employment is terminated;
      3. you breach any of the provisions of the credit agreement;
      4. you commit any act of insolvency;
      5. you die;
      6. you provide incorrect information; or
      7. you do anything to prejudice the credit provider’s rights in terms of the credit agreement.
    4. No relaxation or indulgence which the credit provider may show to you shall in any way prejudice or be deemed to be a waiver of its rights and, in particular, no acceptance by the credit provider of payment after due date (whether on one or more occasions) nor any other act or omission by the credit provider shall preclude or estop it from exercising any rights enjoyed by it hereunder by reason of any subsequent payment not being made strictly on due date or by reason of any subsequent breach by you.
  20. DISPUTE RESOLUTION
    1. You may:
      1. contact the credit provider’s complaints department on telephone number 087 287 4002;
      2. resolve a complaint by way of alternative dispute resolution in terms of the NCA;
      3. apply to a debt counsellor for assessment and debt review in terms of section 86 of the NCA, pursuant to which:
        1. the debt counsellor may make an appropriate proposal to you and credit provider regarding (among other things):
          1. a re-arrangement or re-calculation of your obligations to the credit provider;
          2. a postponement of your obligations to repay the amount outstanding under the credit agreement; and
          3. an extension of the term of the credit agreement;
        2. you may be found to be over-indebted, in which case the debt counsellor may make an appropriate recommendation to the relevant Magistrate’s Court regarding (amongst other things) whether the credit agreement constitutes reckless credit for the purposes of the NCA;
      4. file a complaint with the National Credit Regulator established in terms of the NCA (“National Credit Regulator”);
      5. file a complaint with the National Consumer Tribunal established in terms of the NCA (“National Consumer Tribunal”);
      6. during office hours and upon reasonable, written request to credit provider, access any of its personal information which is held by the credit provider.
    2. The contact details of the National Credit Regulator and National Consumer Tribunal are as follows:
      1. The National Credit Regulator – telephone: 0860 627 627;
      2. The National Credit Tribunal – telephone: 012 394 1450.
  21. MATRIMONIAL PROPERTY ACT
    1. If you are married –
      1. in community of property;
      2. in terms of a customary marriage in which your spouse is not a partner in any other existing customary marriage;
      3. in terms of a customary marriage where you or your spouse is a partner in any other customary marriages and the agreement governing such marriages requires all or any spouses to consent to the conclusion of a credit agreement; or
      4. in accordance with the law of a foreign country, you confirm that you have received the written consent of your spouse/s to enter into this agreement as required by section 15 of the Matrimonial Property Act, 1984.
  22. DEBIT ORDER MANDATE
    1. By signing the debit order mandate which credit provider has included with the Pre-Agreement Statement and Quotation, you have authorised the credit provider to satisfy your obligations by making a charge against an account held by you.
  23. DUE DATES AND PAYMENT DATES
    1. The first instalment under this credit agreement shall be due on the first salary date occurring after the loan is paid to you (“first due date”). The salary date is the date on which your employer pays your salary to you. If you are paid –
      1. weekly and the first salary date occurs within 5 days after the loan is paid to you, then, notwithstanding the fact that your first instalment is due on the first salary date, the first instalment shall be payable on the salary date in the following week; or
      2. monthly and the first salary date occurs within 10 days after the loan is paid to you, then, notwithstanding the fact that your first instalment is due on the first salary date, the first instalment shall be payable on the salary date in the following month.
    2. All other instalments (other than the first instalment) shall become due and payable on the date on which your salary is paid to you by your employer, as it may change from time to time. If, for whatever reason, you are not paid a salary in any week or month (as the case may be), the instalment shall be due and payable on the date on which you were usually paid your salary as was previously confirmed by the credit provider with your employer.
    3. If the instalment is not received by the credit provider on the date on which it is due and payable, the credit provider may, in its sole discretion (but shall not be obliged to), elect to write off arrear interest on overdue amounts if the full amount of the instalment is received by the credit provider within 5 days (or such shorter or longer period as the credit provider may determine in his sole discretion) of the date on which the instalment was due and payable.
    4. The credit provider shall present debit orders to your bank on your salary date or when funds are available in your account. Should funds not be available at the time that the debit order is presented to your bank, the credit provider may continue presenting the unpaid debit order for as long as it is permissible to do so.