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The Running Account Credit Agreement is a fundamental document used in South African credit arrangements where ongoing credit facilities are required. It establishes a revolving credit relationship between credit providers and consumers, allowing for multiple transactions within a pre-approved credit limit. This agreement type is essential for businesses offering store accounts, credit cards, or flexible credit facilities. The document must comply with the National Credit Act 34 of 2005, which mandates specific disclosures, interest rate caps, and consumer protection provisions. It includes comprehensive details about credit limits, interest calculations, repayment terms, and default procedures, while also ensuring compliance with other relevant legislation such as POPIA for data protection and FICA for anti-money laundering requirements. The agreement is particularly relevant in retail and financial services sectors where ongoing credit relationships need to be formally documented and regulated.

1. Parties: Identification of the credit provider and the consumer, including registration numbers and contact details

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Credit Facility: Details of the running account credit facility including credit limit and purpose

5. Pre-agreement Disclosure: Mandatory NCA disclosures including principal debt, interest rate, and all fees and charges

6. Credit Assessment and Limit: Process for credit assessment and determination of credit limit

7. Interest and Fees: Calculation and charging of interest, service fees, initiation fees, and other charges

8. Statements and Payments: Requirements for monthly statements and payment terms

9. Rights and Obligations: Key rights and obligations of both parties under the agreement

10. Default and Enforcement: Consequences of default and enforcement procedures

11. Duration and Termination: Term of the agreement and termination provisions

12. Communication: Methods and requirements for formal communications between parties

13. Personal Information: Treatment of personal information in compliance with POPIA

14. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement