Incidental credit agreements

[Dave A]

Cost of credit
101. (1) A credit agreement must not require payment by the consumer of any money or other consideration, except�

(d) interest, which�

(i) must be expressed in percentage terms as an annual rate calculated in the prescribed manner; and
(ii) must not exceed the applicable maximum prescribed rate determined in terms of section 105;

(f) default administration charges, which�

(i) may not exceed the prescribed maximum for the category of credit agreement concerned; and
(ii) may be imposed only if the consumer has defaulted on a payment obligation under the credit agreement, and only to the extent permitted by Part C of Chapter 6; and

(g) collection costs, which may not exceed the prescribed maximum for the category of credit agreement concerned and may be imposed only to the extent permitted by Part C of Chapter 6.


Maximum rates of interest, fees and charges
105. (1) The Minister, after consulting the National Credit Regulator, may prescribe a method for calculating�

(a) a maximum rate of interest; and

(b) the maximum fees contemplated in this Part,

applicable to each subsector of the consumer credit market, as determined by the Minister.

(2) When prescribing a matter contemplated in subsection (1), the Minister must consider, among other things�

(a) the need to make credit available to persons contemplated in section 13(a);

(b) conditions prevailing in the credit market, including the cost of credit and the optimal functioning of the consumer credit market; and

(c) the social impact on low income consumers.

(3) When establishing regulations contemplated in this section, the Minister�

(a) must establish different maximums for credit agreements within each subsector of the consumer credit market; and

(b) may prescribe the method, consistent with section 101(3), for allocating service fees between the provision of credit and the provision of related financial services, in circumstances in which a credit provider offers multiple financial services under a single agreement.

[Dave A]

Part D - Statements of account

107. Limited application of this Part
108. Statement of account
109. Form and content of statement of account
110. Statement of amount owing and related matters
111. Disputed entries in accounts
112. Dating and adjustment of debits and credits in accounts
113. Statement of settlement amount
114. Tribunal may order statement to be provided
115. Disputes concerning statements

[Dave A]

Part E - Alteration of credit agreement

116. Alteration of original or amended agreement document
117. Changes by agreement
118. Reductions to credit limit under credit facility
119. Increases in credit limit under credit facility
120. Unilateral changes by credit provider

[Dave A]

Part A - Collection and repayment practices

124. Charges to other accounts
125. Consumer’s or guarantor’s right to settle agreement
126. Early payments and crediting of payments

[Dave A]

Part C - Debt enforcement by repossession or judgment

129. Required procedures before debt enforcement
130. Debt procedures in a Court
131. Repossession of goods
132. Compensation for credit provider
133. Prohibited collection and enforcement practices