Q. Is the quotation document part of the instruction documents which are imported from the bank? - 7 May
A. Banks will instruct their panel attorneys differently in this regard. In the majority it will form part of the instruction documents.
Q. At what point would instructions be sent to the conveyancer? - 17 May
A. Banks will differ in this regard. In some cases the instruction will be sent some hours after the quotation was sent to the consumer. In other cases the bank will wait until the customer has accepted the quotation before sending out the instruction. Please refer to the bank's manuals which we will publish in theGhostDigest on the NCA Documents page when they become available.
Q. Are instructions received as normal? - 17 May
A. Yes. Although the instructions might include additional information, the instructions will still generally be sent and received as they were before 01 June 2007.
Q. If the loan is entered into on or before 30 May 2007, does it need to be an NCA loan or not? - 17 May
A. The banks have taken the view that the need to be an NCA-compliant loan will depend on the date the instruction is sent to register the bond to the conveyancer and not when the agreement is entered into. Some banks have chosen 26 May 2007 as the cut-off date for non-NCA instructions while others have chosen 02 June 2007 as their cut-off date (NOTE: These dates have changed and could be changed again!). The approach of choosing the instruction date rather than the agreement date was necessary as in some cases the instruction to enter into the bond preceded 01 June 2007 by some months. However s4 of the NCA makes it clear that the NCA applies to all "credit agreements" entered into after the implementation date. As the implementation date of the relevant section is 01 June 2007 (in terms of Government Gazette no. 28824 published on 11 May 2006) there appears to be some difference between the more practical approach taken by the banks and the strict letter of the law, but it is understood that the National Credit Regulator is aware of the logistical problems faced by the banks in this regard.
Q. I know that the quotation is valid for 5 working days, but what do we do if the client informs us that he/she is waiting for quotations from other banks? - 5 July
A. If the attorney has received an instruction from a bank before the client has accepted the quotation, then the bank would be aware of the possibility that the loan would not be taken up. What might occur - if the client is waiting on other quotations - is that the original five days expires without the client accepting any quotation. In this case the attorney will need to contact the bank to establish whether the quotation is valid for a further period of time, or a new quotation needs to be provided if the offer to the client has expired.