Service charges are defined as a fee that can be charged by a credit provider at regular intervals (usually monthly) in relation to the routine administrative costs associated with maintaining a credit contract. The maximum service fee in the form of regulations is R50 per month or R600 per year. All categories and sizes of credit contracts are subject to the same maximum « flat rate » tax of R50. It appears that the service commission has been standardized to simplify the application of the law, which is justified by the fact that every loan, regardless of size, must be managed. If the customer misses payments or falls more than a certain amount, you must provide payment notices in case of a delay. You must also indicate whether you intend to impose a late amount – for example. B if you violate the agreement by missing a rate – or if you collect interest. The right of withdrawal applies to all regulated consumer credit contracts, except: a credit contract is a credit contract when it provides for a deferral of payment or a delay in payment and a commission or interest is collected for the deferred payment. The law does not require a credit contract to be signed in writing and by both parties, even though this is implicit in the law as a whole.
A credit contract can be a credit facility, a credit transaction or a credit guarantee (or a combination of these). These three terms are defined in section 8 of the act. A « credit transaction » can refer to one of the different types of transactions. The most important for current purposes is the consequence Everyone is entitled to a free credit bureau report once a year. Then it costs 20 R20 per application. Two major credit bureaus with contact numbers are: – ITC – 086 148 2482 (website: www.mycredit.co.za). Experian – 086 110 5665 (website: www.creditexpert.co.za) During this process, a consumer cannot use their credit facility (for example. B credit card); nor can he enter into any other credit contract. A credit provider who enters into a credit contract with a consumer while the consumer is in the process of controlling the debt risks making the credit contract a reckless credit. Note that the Consumer Credit Directive has changed the rules for calculating the Total Appropriations Commission (TCC) on which the RPA is based. Credit providers and credit bureaus were required to register with the NCR by July 28, 2006.