Whereas the Credit Contracts Act previously excluded agreements in which the debtor became the owner of the property or re-established the ownership or use of the goods of the definition of “rental-sale,” the amending law explicitly included these types of credit contracts in the definition. This means that the categories of credit contracts under the definition of “credit transaction,” and thus the application of the law, have been extended to these types of transactions. The Credit Contracts Act regulates certain transactions in which personal property is leased or purchased on credit or certain services are provided on credit and sets limits on the amount of deposit payable and the duration of the repayment period for selected leasing or credit transactions. In the past, the provisions of the Credit Contracts Act did not contain agreements on certain sectors, namely mining, mechanical construction, construction, road construction or manufacturing. Under the amending act, the law does not apply to credit contracts related to commercial activities. Although the scope and meaning of the concept of “activity” are not defined in the legislation, we believe, given their normal daily importance, that the law will only apply to leasing contracts or the purchase of personal assets (i.e. non-commercial activities). The amendable law was passed to achieve a general reduction in the credit transactions of ordinary Nibibian citizens, many of whom live beyond their financial means and thus go into debt with credit contracts. It aims to: (i) change the definition of “rental”; (ii) law enforcement; and (iii) possible penalties to be applied in the event of an infringement. In addition, the provisions of the Credit Agreements Act, previously defined under Notice AG 67 of May 27, 1981 (communication 1981), applied only to credit transactions with a cash price of N$100,000 or less. However, the amendable law removed the entirety of the 1981 communication, including provisions limiting the cash price to N100,000 or less. From now on, the provisions of the Credit Contracts Act therefore apply to all credit contracts, regardless of the cash price. The Namibia Credit Agreements Act 75 of 1980 (Credit Agreements Act) has recently been significantly amended.
The amendments to the Credit Agreement Amendment Act 3 of 2016 came into effect on August 1, 2016. “The provisions of this Act apply to those credit contracts or categories of credit contracts that the Minister may set from time to time by notification to the Official Journal: provided that the Minister does not have the authority to apply these provisions to credit contracts in the form of which the amount of the penalty is no more than N$5,000 at an amount not exceeding 50,000 N, N or the amount to be paid in the form of a surety does not exceed 50,000 N. This.B may mean that if the down payment was N$ 80,000, a person who has violated or has not complied with the provisions of the law may pay a fine of N80,000 N , but if the down payment was, for example, N$35,000, such a person can pay a fine of N$50,000. If you want to know how lexology can advance your content marketing strategy, please email firstname.lastname@example.org. Dentons thanks Nawala Kamati-Unger of Engling, Stritter and Partners for her contribution this month to the Africa section of the Denton South Africa newsletter. In this article, Nawala gives an overview of recent changes to Namibia`s Credit Agreements Act “The lexology information flow is very relevant to my practice and I like that you can customize the News Feed to certain exercise areas.