I am in the process of converting our 'service agreements' in to preferred languages as outlined by the NCA. We were going to use the most common languages spoken, i.e. English, Afrikaans, Zulu and Xhosa Having spoken to colleague at one of the financial institution I was shocked to discover that the credit agreements not only has to be in the preferred language but also what needs to be considered is what is the preferred languages spoken in that province. Ultimately you would need to have your credit agreements in all 11 official languages . IS THIS THE CASE
Would the preferred language obligation effect companies that are listed as ‘incidental credit ‘
Jazz, during the seminar I have attended with mr Davel from the NCR they are more concerned about the pre-agreement disclosure (quotation) for credit agreements that have to be uniform. The disclosure document should be in the prescribed format and preferably in the language of the consumer. For that purpose the NCR has made available the forms available for download from: http://www.ncr.org.za/REG_Forms.html (all 11 language are there).
As far as I could establish the NCR is fine with credit agreements being in either English and/or Afrikaans, but was informed that they will in future revise their view on this and might insist that credit agreements are in the official language spoken in a certain area as well as English. For now, you should be fine if your agreements are only available in English and Afrikaans as long as your pre-disclosure agreement is made available in English and one other language.
As for incidental credit, you should bear in mind that we do not work here with the stricht formalities of a formal credit agreement - one does not give out the pre-disclosure agreement or quotation when dealing with a incidental agreement as the initial agreement between the parties was never intended to be a formal credit agreement governed by the NCA. Again, you should be fine when making your agreement available in English and one other language for the time being. Remember that an incidental credit agreement also falls under the ambit of the NCA and thus subject to all provisions of the NCA.