Where can a consumer complain about credit-related disputes? Secure bank credits, credit card accounts or chequing accounts fall under the “credit facility” category. The maximum interest rate is also linked to SARB Bank`s redemption rate and is currently 29.8 percent per annum. A credit provider is the party that provides goods or services (for example. B under an installment purchase agreement) or who pays money (for example. B in respect of a secured or unsecured cash loan, overdraft, mortgage or mortgage). The lender is often referred to as a “lender”, especially when steps are taken to recover sums due from the consumer. Payment of Accounts – A consumer may pay any amount due at any time in advance and pay the account in full at any time, subject to cancellation fees not exceeding 3 months of interest, only in the case of mortgage obligations or agreements greater than R250,000. Registrations – Credit providers are required by law to keep records of all credit applications, credit agreements, and credit accounts for a prescribed period of time. Section 8 of the ACA defines what credit agreements are and divides the definition into four categories.

The NCR may be invited by the Minister to create a single national register of outstanding credit agreements, but it has not yet done so. Once established, borrowers must provide the following information about each credit agreement: this result is so unfair that borrowers are discriminated against by very small loans (almost all from the poorest municipalities). The law itself provides that service charges must vary from the main debt, that is, they should be higher for larger loans and lower for smaller ones. This is not the case. The regulations should be amended to determine the service fee at a percentage of the loan amount, subject to a minimum and a margin maximum (as is the case for the opening fee). Alternatively, for smaller credit agreements, the service fee should be waived and, if necessary, the maximum interest rate increased. If the service fee is not changed or waived, it should be challenged in court. The impact of initiation and service fees on small loans distorts the cost of credit relative to interest and fees, which reduces interest rates relative to these fees.

This distortion has the dangerous effect of concealing the consumer`s true borrowing costs and misleading the consumer. . . .