CONSUMER CREDIT & RESPONSIBLE LENDING
POLICY MANUAL

Aligned to the National Credit Act 34 of 2005 (as amended),
National Credit Regulations and applicable NCR requirements

 

COMPLIANCE NOTICE

This manual is a compliance framework and must be reviewed against FinTrust Loans’ final credit products, NCR registration conditions, current statutory fee/interest caps and operational processes before implementation.

 

Document Control

This manual sets minimum consumer-facing and operational standards for FinTrust Loans. Where legislation, regulations, a binding NCR condition or a lawful regulatory directive imposes a higher or different standard, that requirement prevails.

Legislative and Regulatory Framework

• National Credit Act 34 of 2005, as amended (NCA).
• National Credit Regulations, including applicable affordability-assessment requirements.
• Protection of Personal Information Act 4 of 2013 (POPIA), where consumer personal information is processed.
• Applicable NCR registration conditions, circulars, guidelines and prescribed forms.
• Other applicable South African laws governing debt collection, electronic transactions, consumer communications and financial crime prevention.

Contents

1. Consumer Credit & Fair Treatment Policy
2. Responsible Lending & Affordability Assessment Policy
3. Credit Application & Verification Policy
4. Pre-Agreement Disclosure & Credit Agreement Policy
5. Interest, Fees & Cost of Credit Policy
6. Consumer Rights Policy
7. Repayment, Settlement & Account Administration Policy
8. Arrears, Default & Collections Policy
9. Debt Review & Over-Indebtedness Policy
10. Credit Bureau & Consumer Information Policy
11. Complaints & Dispute Resolution Policy
12. Privacy & POPIA Policy
13. Marketing & Advertising Policy
14. Fraud Prevention & Document Verification Policy
15. Record Keeping & Regulatory Reporting Policy
16. Staff Conduct, Training & Compliance Monitoring
17. Consumer Declaration
18. Policy Approval

1. Consumer Credit & Fair Treatment Policy

Purpose

FinTrust Loans will provide consumer credit fairly, transparently and consistently, and will maintain processes designed to support the purposes of the NCA, including responsible credit granting and improved consumer information.

Policy Principles

FinTrust Loans will not unfairly discriminate in access to credit; will communicate in plain and understandable language; will disclose material loan terms before contracting; will not require a consumer to waive statutory rights unlawfully; and will treat consumers respectfully throughout the credit lifecycle.

Scope

This policy applies to applications, affordability assessments, quotations, agreements, disbursements, repayments, collections, complaints, credit-bureau interactions and account closure.

2. Responsible Lending & Affordability Assessment Policy

Prohibition on Reckless Credit

No credit may be granted without the assessment required by the NCA and applicable regulations. Staff may not override an adverse affordability result merely to meet sales or production targets.

Assessment Standard

Before approval, FinTrust Loans must take reasonable steps to assess the consumer’s understanding of the proposed credit, debt repayment history, existing financial means, prospects and obligations, and affordability as required by law.

Income Verification

FinTrust Loans will obtain and retain appropriate documentary evidence of income in accordance with the applicable affordability-assessment rules. Variable income must be assessed conservatively and in accordance with prescribed methodology.

Existing Obligations and Credit Report

A credit report from a registered credit bureau will be obtained within the legally required period where applicable. Existing credit obligations and repayment history must be considered.

Living Expenses

Declared living expenses must be assessed against applicable minimum expense norms. Any material deviation must be supported and documented where required.

Outcome

Credit may only be approved when the assessment supports affordability. If the requested amount is unaffordable, FinTrust Loans may decline the application or consider a lower amount only after ensuring the revised credit is affordable.

3. Credit Application & Verification Policy

Application Requirements

Consumers must provide accurate identity, contact, income, expense, employment/source-of-income and existing-debt information reasonably required for the credit assessment.

Supporting Documents

FinTrust Loans may request identity documents, bank statements, payslips, proof of income, proof of address or other lawful verification documents appropriate to the application.

False or Incomplete Information

Materially false, misleading or unverifiable information may result in an application being declined or referred for investigation, subject to the consumer’s rights under applicable law.

Approval Authority

Only authorised staff or systems operating within approved credit rules may approve credit. Approval decisions and overrides must be traceable.

4. Pre-Agreement Disclosure & Credit Agreement Policy

Pre-Agreement Statement and Quotation

Before entering into a credit agreement, FinTrust Loans will provide the prescribed pre-agreement statement and quotation. For a small credit agreement, the prescribed form applicable to that agreement must be used.

Required Disclosure

The quotation must clearly disclose the principal debt, interest, applicable fees and charges, instalments, total amount payable and other prescribed cost information.

Validity

The quotation will remain open for the period required by law. If the agreement is concluded within that period, FinTrust Loans will honour the quoted rates and costs as required.

Agreement Copy

The consumer must receive a copy of the concluded credit agreement in the prescribed manner. No consumer may be asked to sign blank or materially incomplete credit documentation.

5. Interest, Fees & Cost of Credit Policy

Lawful Charges Only

FinTrust Loans will charge only interest, initiation fees, service fees, insurance costs, default administration charges, collection costs and other amounts permitted by the NCA and applicable regulations.

Statutory Caps

Product pricing must be configured and reviewed against the statutory maximums applicable to the relevant category of credit agreement. No generic percentage may be used if it would cause any component or total charge to exceed a legal limit.

Disclosure

All applicable charges must be disclosed before conclusion of the agreement and reflected accurately in consumer documentation.

Change Control

Any change to pricing, fees or loan structure requires compliance review before implementation.

6. Consumer Rights Policy

Core Rights

FinTrust Loans recognises consumers’ rights to apply for credit, receive reasons for a declined application where required, receive prescribed disclosure, receive information in plain language, have information treated confidentially, access and challenge credit-bureau information, and seek assistance when over-indebted.

Language and Understanding

Required documents will be made available in a manner consistent with the NCA’s language and plain-language requirements. Staff must not pressure a consumer to sign documentation they do not understand.

No Unlawful Waiver

No agreement, declaration or internal procedure may unlawfully waive or limit a consumer’s rights under the NCA.

7. Repayment, Settlement & Account Administration Policy

Repayment Schedule

The agreement must state instalment amounts, due dates, frequency and approved payment methods.

Payment Allocation

Payments must be allocated accurately and account balances maintained in a reliable, auditable manner.

Statements and Information

Consumers will receive statements or account information where and when required by law or the agreement.

Early Settlement

Consumers may settle credit in accordance with the NCA. Settlement figures must be calculated lawfully and no prohibited early-settlement penalty may be charged.

Account Closure

After lawful settlement, the account will be updated and any required credit-bureau updates processed within applicable requirements.

8. Arrears, Default & Collections Policy

Early Engagement

Consumers in arrears may be contacted promptly and respectfully. Consumers experiencing financial difficulty should be given appropriate information about available lawful options.

Collection Conduct

FinTrust Loans and its agents may not harass, intimidate, threaten unlawful action, misrepresent legal consequences or improperly disclose a debt to unrelated third parties.

Charges

Default administration charges and collection costs may only be imposed where authorised and within applicable legal limits.

Enforcement

Formal enforcement must follow the NCA’s required procedures, notices and waiting periods. Legal action may only be taken through lawful channels.

Third-Party Collectors

External collectors or attorneys must be appropriately appointed and contractually required to comply with applicable law and FinTrust Loans’ conduct standards.

9. Debt Review & Over-Indebtedness Policy

Recognition of Debt Review

Valid debt-review notices and related legal processes will be recorded and handled in accordance with the NCA.

No Improper Circumvention

Staff may not encourage consumers to conceal debt-review status or enter into prohibited new credit.

Cooperation

FinTrust Loans will respond to lawful requests from registered debt counsellors, courts, the NCR and other authorised parties within applicable requirements.

Consumer Assistance

Consumers who indicate serious repayment difficulty should be informed, without pressure, of appropriate lawful avenues for assistance.

10. Credit Bureau & Consumer Information Policy

Permitted Purpose

Credit information may only be obtained, used, submitted and retained for lawful purposes.

Accuracy

Information reported by FinTrust Loans must be accurate, complete and capable of substantiation.

Adverse Information

Any notice required before reporting negative information must be provided in accordance with the NCA and applicable regulations.

Disputes

Credit-bureau disputes and correction requests must be investigated promptly and supported by proper records.

11. Complaints & Dispute Resolution Policy

Access

Consumers may lodge complaints through FinTrust Loans’ designated email, telephone, online or written channels once these channels are formally adopted.

Logging and Acknowledgement

Complaints must be logged with a reference number, date, consumer details, issue, owner and status.

Investigation

Complaints must be investigated fairly, using relevant account records and applicable law. Staff involved in the disputed decision should not improperly obstruct escalation.

Response and Escalation

FinTrust Loans will provide a clear outcome and, where unresolved, inform the consumer of available external escalation avenues, including the NCR or other competent dispute-resolution body as applicable.

Root Cause

Material or recurring complaints must be reviewed for process, training or system improvements.

12. Privacy & POPIA Policy

Lawful Processing

Consumer personal information will be processed for lawful and defined purposes such as application assessment, identity verification, fraud prevention, loan administration, collections, regulatory compliance and permitted credit-bureau activities.

Data Minimisation

Only information reasonably necessary for the relevant purpose should be collected and accessed.

Security

Reasonable technical and organisational safeguards must protect consumer information from loss, unauthorised access, alteration or disclosure.

Sharing

Personal information may only be shared with authorised service providers, credit bureaux, regulators, legal representatives or other parties where lawful and necessary.

Retention

Personal information and credit records will be retained for legally required or justified periods and securely disposed of when no longer required.

13. Marketing & Advertising Policy

Fair Marketing

Credit marketing must be clear, accurate and not misleading. Material costs or conditions may not be concealed.

No Guaranteed Approval Claims

Marketing must not create a false impression that approval is automatic or guaranteed where an affordability and credit assessment is required.

Prohibited Practices

FinTrust Loans will comply with NCA restrictions on prohibited credit marketing, negative-option marketing and other unlawful solicitation practices.

Approval of Materials

Consumer-facing advertising and campaigns must receive compliance approval before publication.

14. Fraud Prevention & Document Verification Policy

Verification

FinTrust Loans may verify identity, bank, employment and income information using lawful methods.

Red Flags

Suspected identity theft, altered documents, inconsistent information or unusual payment/refund requests must be escalated for review.

Fair Treatment

Fraud controls must not be used as a pretext to discriminate or deny statutory rights.

Reporting

Suspected unlawful activity may be reported to appropriate authorities where required or permitted by law.

15. Record Keeping & Regulatory Reporting Policy

Records

FinTrust Loans will retain applications, assessments, verification documents, bureau results, quotations, agreements, payment histories, communications, complaints, collection records and settlement records as required.

Audit Trail

Key credit decisions, approvals, changes and consumer communications must be traceable.

Regulatory Returns

Required NCR reports and returns must be prepared accurately and submitted by the applicable deadlines.

Access Control

Records must be accessible only to authorised persons and available for lawful audits, inspections and investigations.

16. Staff Conduct, Training & Compliance Monitoring

Conduct

Employees and agents must act honestly, fairly and within their authority.

Prohibited Conduct

Staff may not falsify affordability data, alter consumer documents, conceal fees, coach consumers to misstate expenses or obligations, or use unlawful collection tactics.

Training

Relevant staff must receive induction and periodic training on the NCA, affordability assessment, consumer rights, complaints, privacy, collections and fraud controls.

Monitoring

FinTrust Loans will conduct periodic file reviews, pricing checks, complaint reviews and other compliance monitoring appropriate to its size and risk profile.

Breaches

Material breaches must be escalated to management and may result in corrective action, disciplinary action, consumer remediation and regulatory reporting where required.

17. Consumer Declaration

Declaration

The consumer may be required to declare that information supplied is true and complete; material financial obligations have been disclosed; FinTrust Loans may lawfully verify information; the consumer has had an opportunity to review the proposed costs and obligations; and an application does not guarantee approval.

Important Limitation

A declaration does not remove FinTrust Loans’ own statutory duty to conduct the required credit and affordability assessment.

18. Policy Approval

Adoption

This manual becomes effective only after formal approval by FinTrust Loans’ authorised governance body or director(s).

Review

The manual must be reviewed at least annually and sooner where legislation, regulations, NCR requirements, product design or material compliance risks change.