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.
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