First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. NCA NATIONAL CREDIT ACT

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. APPLICATION All consumers (includes sole proprietors and Trusts with two or less trustees) Includes businesses with assets or turnover up to R1m

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. BACKGROUND  To open the credit market to all consumers  To wipe out undesirable practices  To improve on consumer rights

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. CREDIT BUREAU  Undesirable practice: Blacklisting Requires reporting of all credit agreements entered into or amended or terminated ito amount, repayment, expiry date and consumer details. Consumer right: to challenge the accuracy of their credit record at the bureau. Credit providers have 20 days to provide credible evidence in support, failing which the information and record of it must be removed.

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. MARKETING AND SALES  Undesirable practice: Negative option selling Marketing consent requirements to cross sell New rules for direct solicitation & use of external databases Automatic increases only with consumer consent. Prescribed advertising requirements.

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. DOCUMENTS  Undesirable practice: misleading disclosure Credit agreements Language Unlawful provisions Prescribed formats for small agreements Introduction of pre agreement & Quote Prescribed content for others

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. PRICING MODELS  Undesirable practice: Extreme pricing  Pricing models Prescribed and maximum rates Fee structure changes Initiation fee Monthly service fees allowed but prescribed maximum Fees not prescribed may not be charged

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. Reckless lending & debt counseling  Undesirable practice: Extreme Over indebtedness  Credit assessments much more detailed & onerous  Affordability checks  Over indebtedness checks  Ensuring the consumers understand the product features and costs, terms & conditions, as well as their obligations

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. Enforcement and debt collection  Undesirable practice: Inflated collection charges Debt Counselors

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. THANK YOU QUESTIONS?

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services Provider. NCA = CAN