StokFella (PTY) LTD. TERMS AND CONDITIONS (NCRCP12735)

Herewith the Terms and Conditions of all/any Loan Agreement (in terms of section 93(2) of the National Credit Act No. 34 of 2005 (‘the Act”) for StokFella (Pty) Ltd (“StokFella”, “we”). These Terms and Conditions form part of and are to be read together with Quotation and Payment Schedule issued. Any reference to “agreement” hereunder will mean the Quotation and Payment Schedule together with these Terms and Conditions. Any reference

to “you, your” hereunder will mean the applicant stokvel group being its executives and members.

1.    INTRODUCTION

• 1.1. StokFella is registered with the National Credit Regulator (“NCR”) and subscribes to the National Credit Act (“NCA”).

• 1.2. The agreement is concluded and binding once StokFella disburses the approved loan application by your stokvel executives to your stokvel group on your StokFella stokvel account. The granting of the loan is entirely within the discretion of StokFella.

• 1.3. The stokvel group warrants that it is the legal, exclusive and rightful holder of the StokFella stokvel account(s).

2.    QUOTATION AND PAYMENT SCHEDULE

• 2.1. The quotation will be auto generated and displayed within the StokFella platform to review and accept. Once accepted, a payment schedule will be issued.

• 2.2. The payment schedule will be auto generated and sent to the stokvel executive(s) and will outlay information relating to the loan amount provide and must be read as part of this agreement.

3.    INTEREST RATE AND FEES

• 3.1. The interest rate is fixed for the duration of the agreement and shall not exceed the maximum interest rate applicable to your agreement under the NCA.

• 3.2. The full interest is calculated upfront based on the loan amount requested and term selected. The full interest together with fees and any charges within the NCA; is charged upfront and collected according to the agreed payment schedule.

• 3.3. Should StokFella change the interest rate, the amount of fees or charges applicable to your stokvel as provided for in the NCA, StokFella will notify your stokvel executives in writing by way of Email of the proposed change(s) at least 5 (five) business days before such change is implemented.

4.    REPAYMENT TERMS

• 4.1. Once the loan amount has been disbursed into your StokFella stokvel account, your stokvel and all its members will be responsible for repayment of the total amount due as stipulated in the agreement.

• 4.2. You furnish StokFella or any appointed 3rd party service provider with the rights to raise a recurring payment in respect of any amount payable under the agreement according to payment schedule on your stokvel account(s) if any payment schedule of loan is missed.

• 4.3. Where any of these recurring payments falls outside the payment schedule or are raised on a weekend or public holiday, StokFella will raise the payment on the next business day.

5.    CESSION

• 5.1. You hereby fully cede in securitatem debiti all rights of any of the stokvel savings on your StokFella stokvel account(s) against the loan agreement, loan amount, full interest together with fees and any charges to StokFella as security/collateral towards payment.

• 5.2. You further agree that all rights and benefits to the security/collateral is ceded to StokFella and StokFella can utilise the collateral as it sees fit provided it does not disadvantage the stokvel interest gained by the security/collateral on the StokFella stokvel account(s).

• 5.3. You warrant that your StokFella stokvel account(s) have not been ceded prior to this deed of cession and that you are lawfully entitled to cede the account as security in terms of this agreement.

• 5.4. StokFella reserves the right, at any time duration of this cession and without notice to you, to withdraw amounts and generally operate the ceded funds, to cede any or all of its rights in and/or claims against your stokvel to a third party elected by StokFella.

• 5.5. By acceptance of this agreement, you hereby accept the cession in securitatem debiti, and irrevocably and unconditionally consent to such cession.

• 5.6. The cession shall endure and be of force and effect until the loan agreement is fully paid.

6.    INSURANCE

• 6.1. Where and when applicable and if selected by you in your application online; a credit life policy will be arranged on your behalf. You then acknowledge that:
• 6.1.1     The policy is offered by a licensed 3rd party insurance provider nominated by StokFella through the StokFella platform;
• 6.1.2     You have not waived the policy proposed on the StokFella platform however you are aware of your right to waive the proposed policy and substitute it with a policy of your own choice;
• 6.1.3     Failure to comply with the insurance requirements is a breach of this Agreement
• 6.1.4     Only the stokvel members at the time of the credit life being insured will be the beneficiary under the policy. New members after will not be covered;
• 6.1.5     The policy schedule including its terms and conditions will be sent to your stokvel executives electronically and you agree to have read and understood all the terms of the policy;

• 6.1.6     The policy will cover the following:
• 6.1.6.1 death cover or permanent disability (which covers your full outstanding balance);
• 6.1.6.2 temporary disability (covers up to 12 months’ premiums); or
• 6.1.6.3 loss of income (which covers up to 12 month’s premiums).

• 6.1.7     You are familiar and understand the exclusions contained in the policy of the 3rd party insurance provider.
• 6.1.8     On the occurrence of one of the insurable events under the policy, StokFella will receive the cover payable in terms of the policy to settle any outstanding amount in terms of your payment schedule;
• 6.1.9     You irrevocably authorise 3rd party insurance provider to obtain from any person, doctor or institution (whom you hereby authorise and request to provide) any information that the 3rd party insurance provider deems necessary to facilitate the consideration of any claim for any benefits payable in terms of the policy;
• 6.1.10  You have chosen to have StokFella act as your agent in arranging the insurance therefore agent fee will be levied against your premiums;
• 6.1.11  You authorise StokFella to pay the premiums on your behalf and we can recover these premiums as part of the payment schedule.
• 6.1.12  If you arranged your own insurance policy, you must provide the 3rd party insurance provider with documentary evidence that the policy is effective, and all premiums are up to date.

7.  STATEMENTS

• 7.1    You agree the statement of payment schedule to be incorporated in your current StokFella stokvel account statement. You can download this statement up to 90 days in arrears for Free anytime you wish from your StokFella profile.

• 7.2    Non-receipt of statements does not free you from your obligation to pay the loan agreement.

8 . RIGHT TO TERMINATE THE AGREEMENT

• 8.1    You and your stokvel can terminate this agreement by closing your StokFella stokvel account by which you agree that StokFella may immediately claim the entire amount you owe in terms of the agreement from the locked cede stokvel savings on StokFella stokvel account(s) (which includes, without limitation, loan amounts, arrear interest, fees and any other monies owing against the outstanding loan amount).

9. NON-COMPLIANT OF THE LOAN AGREEMENT

• 9.1    If you do not comply strictly with the rules set out in this agreement, commit any act of insolvency, are sequestrated, make any untrue statements or representations, fail to disclose any information that is pertinent to the loan application or do anything that may prejudice the rights of StokFellla, we may, without prejudice to any other right that may accrue to us, claim the full amount outstanding which includes, without limitation, the loan amount, arrear interest or any other monies owing against the outstanding loan amount.

10. JURISDICTION

• 10.1 In terms of section 45 of the Magistrates’ Court Act, 32 of 1944, you hereby consent that StokFella may institute any legal proceedings that have to do with this agreement, in the Magistrates’ Court. Your stokvel consent that StokFella may institute action in any Magistrates’ Court, which, in terms of section 28 of the Magistrates’ Court Act, has jurisdiction over you. If we have to go to court for any reason related to this agreement, your stokvel executives will have to appear in the Magistrates’ Court. We can however choose to institute action against your stokvel in any court having jurisdiction.

11. LEGAL COSTS AND CHARGES

• 11.1 You shall be liable and reimburse StokFella on demand, all legal costs, fees and expenses (including legal fees on the attorney, fees and expenses of advisers and other out-of-pocket expenses) incurred by StokFella in connection with the preservation or enforcement (unless and to the extent of a contrary cost order made by any court of competent jurisdiction) of StokFella’s rights under this Agreement (and any documents referred to in this Agreement).

• 11.2 And further, you absolve StokFella from any other liability for and holds it harmless against any loss or damage sustained in or by reason of the enforcement of the said rights or the Stokvel’s failure or omission to enforce any of the said rights.

12. CERTIFICATE

• 12.1 If a certificate is required to verify the loan and the outstanding amount; the StokFella stokvel account statement will be deemed to be sufficient proof of the loan and the outstanding amount. Else a certificate signed by a StokFella manager will be emailed and deemed sufficient and constitutes prima facie proof of the extent of the Stokvel’s liability towards the StokFella under the indebtedness and that it is due and payable unless proven otherwise.

13. WHOLE AGREEMENT

• 13.1 The terms of this agreement to be read in conjunction with terms and conditions of the utilisation of the StokFella platform as well as StokFella Private Policy document. There are no additional unspoken or implied terms and conditions, unless amended by agreement.

14. YOUR RIGHTS

• 14.1 Should you wish to lodge a complaint you can email StokFella on support@StokFella.com or contact us +2711 568 3497.

• 14.2 Your complaint will either be classified as a non-serious complaint or a serious complaint. Serious complaints are those deemed by you and/or StokFella to negatively impact the status of this agreement.

• 14.3 If your complaint is considered to be a serious compliant; it will be attempted to be resolved by way of alternative dispute resolution. If this is not to your satisfactory; you have the right to file a complaint with the NCR or make an application to the National Consumer Tribunal (“the Tribunal”);

• 14.4 The contact details of the NCR and the Tribunal are as follow:

NCR

• Tel: 0860 627 627
• Fax: +27 (0)11 805 4905
• Email: complaints@ncr.org.za
• Website: www.ncr.org.za