Capfin is the registered credit provider; PEP is where documents are handed in. Most guidance about this arrangement stops at the application. This page covers what comes after it — repayment, what happens when a collection fails, and what your options are if you cannot pay.
That is the part worth understanding before you sign, because the consequences of a missed instalment are set by the agreement and by law, and they are much easier to manage if you know them in advance.
Eligibility Requirements at a Glance
The qualifying criteria are the credit provider’s.
- Be 18 years or older
- Hold a valid South African ID document or smart card
- Have a regular, verifiable income paid into a bank account in your own name
- Hold a bank account able to carry an authenticated debit order
- Not be under debt review, sequestration or administration
- Have your own cellphone for one-time PIN verification
Income and Affordability Requirements
The affordability assessment sets the instalment before anything else happens.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Choosing the collection date. This is the single most useful decision you make. A debit order dated shortly after your salary lands almost always succeeds; one dated before it, or late in the month, is the commonest cause of a failed collection. Ask for a date you know works.
Failed collections are expensive twice over: your bank charges for the returned debit order, the credit provider may charge as well, and the missed payment is reported to the credit bureaux.
Credit and Financial Requirements
Repayment is collected by authenticated debit order under DebiCheck, which you approve through your own bank before the first collection. The mandate fixes the amount, the date and the frequency, and nothing outside those terms may lawfully be collected.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
If you cannot pay, act before the collection date, not after. Contact the credit provider and ask what arrangements are available. Providers deal with this constantly and a rearranged date or a temporary reduction is often possible. What is never possible is undoing a failed collection after the fact.
Do not simply stop the debit order. Instructing your bank to block a collection does not cancel the debt — it puts you in default while the balance keeps growing, and it removes the goodwill you would have had by calling first.
If you cannot service your obligations generally, debt review under section 86 of the National Credit Act is the proper route. A registered debt counsellor restructures your obligations through the courts and you gain legal protection from enforcement while you comply. Debt counsellors are listed on the NCR website.
Documents and Verification Required
For the application itself, take everything on the first visit.
- South African ID document or smart card
- Latest three complete consecutive months’ bank statements
- Latest payslip, or the latest three where income varies
- Proof of residence, where requested
- Your own cellphone for verification
- Exact banking details — account number, branch code and account type
How to Apply and Improve Approval Readiness
Apply through the credit provider’s channels and submit documents at a participating store. Then set the repayment up so that it works.
- Choose a collection date shortly after payday
- Approve the DebiCheck mandate through your own banking app, checking every field against your agreement
- Keep enough in the account on the collection date
- Call the provider before a payment you cannot make, never after
- Never stop a debit order without speaking to the provider first
- Keep your copy of the agreement and the pre-agreement quotation
- If your total debts are unaffordable, contact a registered debt counsellor
Frequently Asked Questions
What happens if a debit order fails?
Your bank and possibly the credit provider charge a fee, and the missed payment is reported to the credit bureaux. Contact the provider before the date rather than after.
Can I change my debit order date?
Ask the provider. A date aligned to your payday is in everyone’s interest, and providers will usually accommodate a reasonable request.
Can I stop the debit order?
You can instruct your bank to block it, but that does not cancel the debt. It puts you in default while interest continues. Speak to the provider first.
What is debt review?
A statutory process under the National Credit Act in which a registered debt counsellor restructures your obligations through the courts, giving you legal protection from enforcement while you comply.
Loan terms, fees and collection arrangements are set by the credit provider and change. Confirm current criteria with Capfin, and contact a registered debt counsellor listed on ncr.org.za if your debts are unaffordable.