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NATIONAL CREDIT ACT, 2005
Fees or charges
102. (1) If a credit agreement is an instalment agreement, a mortgage agreement, a
secured loan or a lease, the credit provider may include in the principal debt deferred
under the agreement any of the following items to the extent that they are applicable in
(a) an initiation fee as contemplated in section 101(1)(6), if the consumer has
been offered and declined the option of paying that fee separately;
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"Green Bank" has advised me that as my loan is an "unsecured personal loan", they did not have to advise me of the fact that the Initiation fee could have been paid upfront, instead of forcing me to include it in my loan amount and thus earning additional interest on that amount over the full loan term.

Is this true? It seems as If "Green Bank" is trying to bend the above credit Act to fit their purposes. Can anyone advise me legally if all banks MUST advise you of the option to pay the Initiation fee upfront? It seems to be the case if you read the Act, but "Green Bank" refuses to admit fault.

Granted the "Green Bank" probably stand to loose millions in refunding all their clients that they have not given this option. But this is not my fault.

Can someone please give me their educated opinion ?