With effect from 11 November 2016, the Minister has prescribed the new threshold as nil. In other words, every person who provides credit to another is required to register as a credit provider, no matter how much credit he or she has provided.
Registration as a credit provider is crucial because a credit agreement which is concluded by a credit provider who is not registered as such, but is required to be so registered, is an unlawful agreement, with two limited exceptions. The agreement would be lawful if:
1. at the time the credit agreement was concluded, or within 30 days after that time, the credit provider had applied for registration and was awaiting a determination of that application
2. at the time the credit agreement was concluded, the credit provider held a valid clearance certificate issued by the National Credit Regulator
If the credit agreement is unlawful, then, despite any other legislation or any provision in an agreement to the contrary, a court is required to make a just and equitable order including a directive that the credit agreement is void as from the date on which the agreement was concluded.