Business as usual?

Day 7 Covid Campaign

We've all seen the words "business days" in our agreements, either in our loan, sale or other credit agreements. It's mostly used as the timeframe in which a debtor has to rectify a breach of contract, in most cases, payment of an outstanding amount due in terms of a contract. The National Credit Act governs these credit agreements and processes related to credit bureaus.

With the lockdown, we however ask ourselves, is it still business as usual?

TPN is a registered credit bureau (NCRCB08) which services the education and property markets in South Africa and the bureau confirmed on Monday the 30^th March, that the business days as referred to in terms of the National Credit Act ("NCA"), has been suspended during the period of lockdown.

This means that any "day" during the lockdown in terms of that credit agreement will not be included as business days for the purpose of timelines. Please note, this applies (at this stage) only to credit agreements (car financing, home loans and similar) and credit bureaus; and does not apply to the timelines to rectify breach in residential lease agreements where the business days in terms of the Consumer Protection Act have not been affected.

NCA Business days extended, what this means for you...

There were two fundamentally important updates that occurred in the first week of national lockdown:

The National Credit Act: all business days are extended until after the lockdown ends. Currently, this date is set as the 16th of April but this may be extended further.

South African Post Office: this is an essential service and Post Office branches will remain open for SASSA grant payments - all mail sorting centres will be closed and there will be no mail movement during this time.

The following processes have been affected by the lockdown:

Credit Bureau Dispute Process:

• Consumers have the right to log a dispute on the credit bureau.
• The credit bureau will continue to log consumer disputes and request credible evidence from the supplier of the information.
• Data in dispute will be masked on the consumer's credit profile.
• The credit bureau has 20 business days to make a finding on the accuracy of the disputed data based on the credible evidence provided by the supplier of the information.
• These 20 business days do not include Saturdays, Sundays or Public Holidays and also now does not include the days during lockdown.

Blacklisting (Adverse Listings):

• In terms of National Credit Act Regulations, before listing an adverse listing on a consumer's credit profile, the following requirements need to be met:
  1. the account must be 3 billing cycles in arrears, and
  2. the consumer must have been give 20 business days notification of intention to load the adverse listing on the credit bureau(s).
• These 20 business days do not include Saturdays, Sundays or Public Holidays and also now does not include the days during lockdown.

Letter of Demand for Rent:

• In terms of the Consumer Protection Act (CPA), the Letter of Demand refers to 20 business days to remedy the breach prior to the landlord or property manager being able to cancel the lease.
• Importantly, there has been no communication yet from the Consumer Tribunal to suspend business days as they relate to the CPA; business days are counted as usual for cancelation purposes.
• During the lockdown, the South African Post Office is not sorting mail and there will be no mail movement.
• Many lease agreements to make provision for the tenant's email address in the domicile and may be used to deliver demand during lockdown.
• In terms of the National Credit Act, the Letter of Demand reminds the consumer that non-payment of the arrears could have adverse consequences for their credit profile.
• As noted in point 2, when determining the date of an adverse listing, the calculation of the 20 business days' notice does not include Saturdays, Sundays or Public Holidays and also now does not include the days during lockdown.

Letter of Demand for School Fees (Public Schools):

• It is important for schools to note that in terms of section 39 of the Schools Act, parents or guardians can apply for full or part exemption of school fees. There is no doubt with many people facing retrenchment, unpaid temporary leave or loss of commission earnings that this will have a big impact on exemption applications.
• In terms of the Schools Act, a letter of demand must be sent by registered mail and the consumer must be given 3 months before legal action can be taken.
• During the lockdown, the South African Post Office is not sorting mail and there will be no mail movement, but until there is confirmation that the 3 month period provided in the Schools Act has been extended, schools are entitled to send out letters of demand as normal.
• In terms of the National Credit Act, the Letter of Demand reminds the consumer that non-payment of the arrears could have adverse consequences for their credit profile.
• As noted in point 2, when determining the date of an adverse listing, the calculation of the 20 business days' notice does not include Saturdays, Sundays or Public Holidays and also now does not include the days during lockdown.

Letter of Demand for School Fees (Private Schools):

• In terms of the Consumer Protection Act (CPA), the Letter of demand refers to 20 business days to remedy the breach prior to the school being able to take legal action.
• Importantly, there has been no communication yet from the Consumer Tribunal to suspend business days as they relate to the CPA; business days are counted as usual for cancelation purposes.
• During the lockdown, the South African Post Office is not sorting mail and there will be no mail movement.
• In terms of the National Credit Act, the Letter of Demand reminds the consumer that non-payment of the arrears could have adverse consequences for their credit profile.
• As noted in point 2 above, when determining the date of adverse listing, the calculation of the 20 business days' notice does not include Saturdays, Sundays or Public Holidays and also now does not include the days during lockdown

By Alet Smit I Group Head of Marketing

Article content: TPN Credit Bureau https://blog.tpn.co.za/2020/03/business-days-extended-what-this-means.html?fbclid=IwAR0xim2Jjs4g9D6JaA6N6ayxLDMicn9sCdVY_E2H73f7IrlF4U_djyzR_9k