Interest charged - In duplum rule

[mudyguts]

Hi,

In 2007 I had a loan of R25 000 through Direct Axis, at that time I was under debt review. Recently I was contacted by Lynn & Main for collection of an amount of R38 900. I signed an acknowledgment of debt and commenced monthly payments of R2000 per month.
A couple of months ago I had some financial difficulties and could not pay my normal instalment but made a payment of R500.
I have been contacted by Lynn & Main and asked to resume payments of R2000. Togeather with their request was a statement of the account and I noticed that the balance was R52 500, the interest charged on this amount was 25%.
They also offered a discount of a once of payment of R38 000.

I fell that that that the interest, collection fees and admin fees charged on this amount are far in excess and wanted to know what I can do regarding this.

How does the "in duplum rule" work and can I apply this rule to my case.

Regards.

[Dave A]

What was the capital balance due at the time of original default?

[mudyguts]

Hi Dave,

I thank you for your reply, originally when the debt was with Direct Axis the capital balance was R21 237,41

Regards.

[Dave A]

I did a post with a few links regarding in duplum and the National Credit Act here that may assist.

As for how to proceed, as you're communicating with Lynn & Main, point them to Section 103.5 of the National Credit Act and see what the response is.