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Information Brochure

Understanding your African Bank Contract

THIS INFORMATION BROCHURE EXPLAINS SOME OF THE MOST IMPORTANT ASPECTS OF YOUR LOAN/CREDIT CARD WITH AFRICAN BANK LIMITED (AFRICAN BANK) AND GIVES YOU USEFUL TIPS ON MANAGING YOUR AFRICAN BANK ACCOUNTS. IF YOU DO NOT UNDERSTAND ANY OF THE INFORMATION REGARDING THE LOAN / CREDIT CARD, PLEASE ASK A CONSULTANT TO EXPLAIN IT TO YOU, OR CONTACT AFRICAN BANKS CALL CENTRE ON 086 111 1011.

2 The credit application process

3 How and when do I have to pay my instalments

When you apply for a loan/credit card you will be given a Pre-Agreement Statement and Quotation that is binding for ve (5) business days. The Pre-Agreement Statement and Quotation contains important information on the costs, charges, interest rate, monthly instalment and term for repaying your loan / credit card. Please make sure that you read all the information on the Pre-Agreement Statement and Quotation carefully, together with any other documentation you may be given, and make sure that you fully understand all the terms and conditions before you sign any of the documents. Your African Bank loan / credit card is unique and you need to read all the documentation that you will be given when you receive the loan / credit card. Make sure that you understand how the loan / credit card works, how much you are expected to repay each month, what your credit limit is, as well as the fees and charges. African Bank may refuse to grant you a loan / credit card limit based on the Pre-Agreement Statement and Quotation if your nancial or personal circumstances and/or any information that you provided to the Bank is not correct or has changed since the quotation was issued. How and when will I get my money? If your application for a loan / credit card is successful, the amount that you have borrowed will be paid to you in cash, directly into your bank account, or into your credit card account, in accordance with your request. If your application for a loan / credit card is unsuccessful you may ask for written reasons as to why your application was declined. If the reason for decline is due to any adverse information recorded on any Credit Bureau, African Bank will provide you with the Credit Bureaus name, address and other particulars so that you can investigate the issue with the bureau concerned.

Your loan / credit card instalment payment dates are set out on the front page of your loan / credit card agreement. All deductions will be made in terms of the debit order stop order/ payroll deduction authority form which you have signed. The rst instalment on your loan becomes due 7 days after the date when the money that you have borrowed from African Bank is paid to you or on your behalf, or in the case of a credit card 7 days after you have activated your credit card. Your second instalment and all further instalments on your loan and/or credit card will be due on the rst day of each and every month thereafter. African Bank will use its best efforts to accommodate your request that your instalment should be deducted from your bank account on the day that your salary is paid into your banking account, but African Bank cannot guarantee this. If you are unable to pay any of your instalments please immediately contact African Banks call centre on 086 111 1011. Always ensure that your instalments are paid It is your responsibility to make sure that African Bank receives all your payments. If there is not enough money in your bank account to cover the debit order, or if you are unable to make a cash payment that is due, you must ensure that payment is made to African Bank by some other method for example by paying your instalment in cash at an African Bank branch if they accept cash payments, or by making a direct deposit into African Banks banking account which is held at Standard Bank, the details of which are as follows: For loans Account name: African Bank. Account number: 00011893. Branch code: 000205. For credit cards Account name: Visa Settlement Account. Account number: 0000 54240. Branch code: 000205. Please make sure that you give your African Bank loan / credit card account number (not the number on your card), and your ID number as a reference, to ensure that your payments are correctly allocated to your account.

LOAN / CREDIT CARD

Making sure you can afford your credit When you apply for a loan / credit card you will have to provide certain information that African Bank will use in order to determine if you can afford the loan / credit card that you apply for. This includes information about your income and expenses. It is extremely important that you answer all questions and requests for information fully and truthfully. African Bank will calculate a loan amount / credit card limit together with instalments thereon that you can afford. African Bank will do this by carrying out a full assessment of your income and expenditure with the information that you have given them and by looking at your accounts and/or records on the Credit Bureau and on a register called the National Loans Register. African Bank will do this because it is very important that you are able to afford the loan / credit card limit that African Bank may grant to you, and that you are able to repay the instalments without experiencing nancial difculty.

If the information that you provide African Bank with is not correct or you cannot afford to pay the instalments you must immediately inform African Bank of this before taking up the loan / credit card limit, because if you dont, and you then experience nancial difculty it could mean that you may not be fully protected by the credit laws (National Credit Act, Act 34 of 2005).

4 You should also fax a copy of the deposit slip to (011) 256 9322 (for loans) and 086 602 9059 (for credit cards).

5 What happens if I become over-indebted and what must I do

If there is not enough money in your account to meet the debit order, your bank may charge you a return debit fee. What happens if I dont, or cant pay my instalments If you are unable to pay your instalment in full and on time please contact African Banks Call Centre on 086 111 1011 as soon as possible so that alternative arrangements can be made. If you do this some of the negative consequences set out below can be avoided. If you do not pay your account on time: The full amount owing at the time of your failure to pay could become immediately payable and you could be charged a default administration fee. Interest is charged on the full outstanding balance of your account at any point in time, this means that interest is calculated on a larger amount and the loan /credit card will cost you more. Always try to bring your account up to date as soon as possible by paying extra into your account to make up the amount that you are in arrears with. African Bank may suspend your credit card and stop you from transacting thereon until you bring your account up to date. Your default could be reported to a Credit Bureau and you could develop a bad credit record. African Bank could cancel your loan / credit card and may also institute legal action against you. This could result in a court judgment being granted against you, and your property being sold to repay your debts, or your instalment payments being deducted directly from your salary. If this happens you may nd it difcult to obtain further credit from other credit providers such as cell phone providers, clothing and furniture shops, etc. You will also be responsible for the lawyers costs as well as collection fees. The negative consequences of a bad credit record can be very unpleasant and will stay with you for a long time. It is therefore very important to ensure that you pay your instalments in full, and on time. If you do this you will develop a good credit record and it will be easier for you to obtain credit in the future.

If you experience difculty in repaying your loan / credit card or fall into default, you must contact African Banks call centre. If you dont do this and default on your repayments, African Bank will notify you of your default, and suggest that you refer your problem to a debt counsellor, alternative dispute resolution agent, or a consumer court. These agencies will help you to resolve your problem or develop a plan to bring your instalments up to date. Be aware that some of these agencies may charge a fee for their services and it is always a good idea to ask the agencies that you approach, to specify the fees they charge upfront before you make use of their services. For your convenience contact details of the National Credit Regulator (NCR) are set out at the end of this brochure They will be able to give you the contact details of a debt counsellor near you. What do I do if I want to pay off my loan / credit card early You may pay off your loan / credit card at any time by contacting your nearest African Bank branch, or African Banks Call Centre. To settle your loan / credit card you will have to pay the unpaid balance of the principal debt, together with any unpaid interest, charges, and all other fees and charges payable by you to African Bank, calculated up to the date of settlement (the Settlement amount). The settlement amount will be different to the balance as reected on your account statement. It is calculated by adding the unpaid balance of the principal debt, together with any unpaid interest, charges, and fees up to the date of settlement. To obtain a settlement quote, contact your nearest African Bank branch, or African Banks Call Centre. If your account is being managed by attorneys, you need to contact the attorney to nd out what the settlement balance is, because there may also be legal charges outstanding on your account. Remember that your settlement quote is only valid for the time stated on the settlement quote. If, for example, you want to settle your account a month later, you will need to obtain a new settlement quote.

6 What happens if I have extended the repayment term of a previous loan that I took with African Bank

7 If you have selected the insurance policy suggested by African Bank (The Standard General Insurance Company Limited (STANGEN) insurance policy then:

If you have entered into an arrangement with African Bank to extend the term of a previous loan that was granted to you: all the information contained in this letter will apply to your loan from the date upon which you extended the term of your loan; and you must understand that even though your instalment may have been reduced you will be paying interest, fees, insurance premiums and charges for a longer period of time and this will make the repayment of the loan a lot more expensive for you. When and how will I receive my statements When you apply for a loan, you will be asked if, and how you want to receive your statements. You can choose if you want to receive your loan statements monthly or quarterly. Statements for your credit card will be sent to you on a monthly basis. Statements will be sent to you at the address and in the manner in which you have informed African Bank. Please make sure that you provide African Bank with the correct address and contact details and ensure that you update them regularly so that you always receive the statements sent to you. If you have selected not to receive statements and want to receive them at later stage, please contact the African Bank call centre, who will gladly assist you. You may request the call centre to fax a copy of your statement to you, but before doing this they will need to do a verication check to protect your right to privacy. You can also visit an African Bank branch and request a statement at any time (please make sure that you have your ID with you).

if you die whilst still owing money to African Bank, the insurance company will pay the outstanding amount that you owe, directly to African Bank in order to settle your obligations. if you become permanently or temporarily disabled, the insurance company will for as long as you remain permanently or temporarily disabled and you have an outstanding obligation to African Bank in terms of the credit agreement that you entered into with African Bank, pay an amount equal to your monthly obligations directly to African Bank, so that you are able to continue to meet your obligations in terms of the credit agreement. if you are retrenched, the insurance company will for as long as you remain unemployed and you have an outstanding obligation to African Bank in terms of the credit agreement that you entered into with African Bank, pay an amount equal to your monthly obligations to African Bank so that you are able to continue to meet your obligations in terms of the credit agreement with African Bank. if you become re-employed, within a period of 6 months from being retrenched, and all your obligations in terms of the credit agreement that you entered into with African Bank are not fullled, the insurance company will pay an amount equal to your monthly obligations directly to African Bank, for a period of 2 months, from the date upon which you become reemployed. This is to assist you during your rst 2 months of being re-employed to meet your payment obligations to African Bank in terms of the credit agreement. If you have a credit card the amounts described above will be paid directly to African Bank. The insurance policy will only cover your outstanding balance up to a maximum amount equal to 9 months of arrear charges after the insured event. The insurance policy will not cover you for any increase in your debt after the date of your death or the date on which you become disabled or are retrenched. The insurance cover will apply during the contractual repayment term of your agreement and will also cover the outstanding balance for a period of 12 months after the expiry of the contractual term if you fall into arrears with your payments.

CREDIT INSURANCE
Must I have credit insurance African Bank requires that you have credit life insurance cover during the term of the loan / credit card. If you die, are permanently or temporary disabled, or retrenched, the benets of your credit life insurance will be used to assist you to meet your obligations in terms of your loan / credit card and will be paid directly to African Bank on your behalf. You have the choice to purchase insurance cover from an insurer suggested by African Bank, or alternatively, to provide African Bank with an insurance policy of your own choice, provided that your own policy benets are acceptable to African Bank.

8 You will have to pay your insurance premiums for as long as the insurance cover is in effect as explained above and African Bank may pay the insurance premiums on your behalf and debit your account accordingly. These premiums that are paid to the insurance company on your behalf by African Bank (if your instalment is not paid as per the contract) will become part of your outstanding debt owing to African Bank.

CREDIT BUREAUS
African Bank has to report and share certain aspects of your personal information with others The law (the National Credit Act (NCA) requires African Bank to report information such as your personal details, the details of any credit agreement entered into, terminated or settled, to either the National Credit Register or to a registered Credit Bureau. The information that African Bank reports to these organisations may be used by African Bank to determine whether you are creditworthy, to trace you, verify your educational qualications and/or employment information and to prevent fraud. If you have given African Bank permission to market to you in future, African Bank will use its best efforts to check your credit record before it markets any of its products to you. What is a Credit Bureau? A Credit Bureau is an organisation that keeps record of all your credit applications, credit agreements, payment history and patterns and other consumer credit related information concerning your credit, nancial and personal history. All this information is used to make up and determine your credit record. How to maintain a good credit record Always fully and truthfully disclose information when applying for credit. Never apply for credit if you cannot afford to pay the instalment. Always pay your instalments in full and on time. Always contact your credit provider as soon as possible if you have a problem. If you default on any payment, contact your credit provider and make a payment arrangement in order to bring your payments up to date as soon as possible. How do I get my Credit Bureau report? You have the right to request your Credit Bureau report once within every period of 12 months free of charge, whereafter you will be required to pay the necessary Credit Bureau fee. You can contact Experian Credit Bureau on 086 110 5665 or the TransUnion Credit Bureau on 086 148 2482 for more information.

10 What are my rights relating to the Credit Bureaus?

11 For enquiries / complaints about your insurance policy, contact:

Your insurance premium is calculated daily as a percentage of your outstanding balance and it is charged to your account at the end of each month. You must understand that the insurance company will not pay out under the retrenchment cover if: you have not been continuously employed on a full-time basis for at least 6 months at the time of applying for the loan or credit card. you lose your employment as a result of a disciplinary dismissal or you resign whilst still owing African Bank money. you lose your job because of any strikes or lockouts. you lose your job within 90 days of taking a loan or a credit card being issued to you. How to claim from the insurance company (STANGEN) Obtain a claim form from your nearest African Bank branch and make sure that you attach the required proof and documents. Once you have completed the claim form you need to submit it to an African Bank branch and the branch will forward your claim to the Insurer. For enquiries about insurance claims, you may contact: The African Bank Insurance Collections Department 59 16th Road, Halfway House, Midrand, 1685 Private Bag X170, Halfway House, 1685 Telephone: (011) 256 9321 Fax: (011) 207 4774 Email: insuranceclaims@africanbank.co.za

If you are in arrears and you do not contact African Bank, or African Bank is unable to assist you in resolving your problems, African Bank has to give you notice of at least 20 (twenty) business days prior to African Bank submitting any adverse information concerning you to a registered Credit Bureau. (This notice will only be given to you once). You may request African Bank to provide you with a copy of the adverse information that African Bank intends submitting to the Credit Bureau. Judgments are listed automatically by the Credit Bureaus from information received from the courts. If you dispute information on your bureau report You have the right to challenge the correctness of the information on your Credit Bureau record. You can do this by contacting the Credit Bureau who will assist you with this. The Credit Bureau may not report any information that you challenge before the challenge has been resolved. If you are not satised with the Credit Bureaus ndings, you may contact the Credit Information Ombud at 086 166 2837. If you are still unsatised, you can complain to the National Credit Regulator on 086 062 7627.

STANDARD GENERAL INSURANCE COMPANY LIMITED (STANGEN) 59 16th Road, Halfway House, Midrand, 1685 Private Bag X170, Halfway House, 1685 Telephone: 086 112 2222 Fax: (011) 256 9161 Email: stangen@africanbank.co.za STEP 2 IF YOU ARE NOT SATISFIED with the help offered or the resolution received from the Consumer Service Call Centre, STANGEN, or your African Bank branch you can escalate the matter to African Banks Consumer Advocates Ofce: The ABIL CONSUMER ADVOCATES OFFICE at: Telephone: (011) 256 9284 Fax: (011) 207 4724 E-mail: consumeradvocate@africanbank.co.za STEP 3 IF YOU ARE STILL NOT SATISFIED with the help offered or the resolution received from the ABIL CONSUMER ADVOCATES OFFICE contact: For loan / credit card related complaints contact: The OMBUDSMAN FOR BANKING SERVICES Telephone: 086 080 0900 OR The NATIONAL CREDIT REGULATOR Telephone: 086 062 7627 OR The CONSUMER TRIBUNAL Telephone: (012) 663 5615 For insurance related complaints contact: The OFFICE OF THE OMBUD FOR FINANCIAL SERVICE PROVIDERS Telephone: 086 032 4766; OR The OMBUDSMAN FOR LONG-TERM INSURANCE Telephone: (021) 674 0330 Important: Before you follow STEP 3, you must have followed STEPS 1 and 2.

QUERIES AND COMPLAINTS


What steps do I follow if I have a query or complaint? STEP 1 If you dont understand any aspect of your loan/credit card, or you are unhappy about any other issue: For enquiries / complaints about your loan / credit card, contact your nearest African Bank branch, or The AFRICAN BANK CONSUMER SERVICE CALL CENTRE at: Telephone: 086 111 1011 Fax: (011) 207 4733 Sms: 082 886 6384 E-mail: resolutions@africanbank.co.za