Large Credit Agreement

Interest rates and fees charged are only maximum amounts. The Ministry of Trade and Industry hopes the credit industry will not “jump on maximum rates” and said it has the power to adjust those rates quickly if necessary. During this process, a consumer cannot use their credit facility (for example. B his credit card). nor may he conclude another credit agreement. A creditor who borrows a credit agreement with a consumer while the consumer is subject to debt control risks declaring the credit agreement ruthless. § 90 lists many provisions of credit agreements (unlike all contracts[9]) that are illegal and unauthorized. There are too many of them to list here. The list is broad and broad; Many of these provisions are likely to be open to a large number of interpretations, which should create uncertainty. For example, a provision is unlawful if its general purpose or effect is to thwart the purposes or directives of the law or to “deceive” the consumer. In addition, a provision is illegally credit agreements in South Africa are agreements or contracts in South Africa where payment or repayment by one party (the debtor) to another (the creditor) is deferred. This contribution examines the essential elements of credit agreements within the meaning of the National Credit Act and the consequences of entering into a credit agreement in South Africa.

[1] Credit cannot therefore be considered as a basic universal service to which access should be extended in the same way as access to water, healthcare and electricity. There is a greater need to reconcile access to credit with the protection of consumers, in particular the vulnerable. A credit provider may not use an identity document, credit or debit card, access card or PIN code to enforce a credit agreement or collect the contract. Violation of this provision is a criminal offence. The new credit calculation structure will work better for larger credit advances over R8,000. The cost of credit for contracts below R1,000 is comparable to 30% per month, calculated without limitation of interest rates for small loans. The poorest households bear the heaviest debt burden. .

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