At any time before the revocation, a consumer may reinstate a late credit agreement by paying until now all outstanding amounts, plus late fees and debt collection costs. The consumer can repossess the seized property, but not if the goods have already been sold. Long-term rental: this is a modality in which the credit institution temporarily grants the customer the use of a car by paying a monthly rent. With the conclusion of the contract, the customer undertakes to buy the car at the end of the rent. The maximum introduction fee within the meaning of the rules is R150 per credit agreement, increased by 10% of the amount of the contract which exceeds R1,000 but never exceeds R1,000. In addition, the opening tax must never exceed 15% of the main debt. A consumer may at any time return to a credit provider goods which are the subject of a credit agreement, whether or not the consumer is late. The lender must then sell the goods and use the product to pay the bill. Under the former Credit Agreements Act, this procedure applied only in the event of a delay by the consumer. This new provision gives the consumer an extraordinary right which allows him to free himself from the agreement if he so wishes. The credit agreement may be linked to a sales contract or a service contract if it is used exclusively to finance the payment of the goods or services concerned. The two agreements form an economic unit. There is an economic unit in particular where the supplier of the goods or services is involved in the preparation or conclusion of the credit agreement or where the goods or services are expressly included in the credit agreement.
A credit facility is an offer of financial support that a financial institution submits to a business. A document called a credit agreement, ease letter or loan agreement describes the terms. The lender prepares it first – often in the form of a letter – but the borrower can negotiate the terms. “short-term credit operations” means contracts up to R8,000 repayable within six months; These are usually microcredits. The maximum interest rate allowed is 5% per month or sixty percent per year. Ancillary credit agreements are not covered by the definition of credit agreements in the law. Section 5 sets out the limited provisions of the Act applicable to them. Interest rates and fees charged are only maximum amounts. The Ministry of Trade and Industry hopes the credit industry will not “jump on maximum rates” and said it has the power to adjust those rates quickly if necessary. After reading the credit agreement thoroughly, Sarah accepts all the conditions described in the agreement by signing it.
The lender also signs the credit agreement; after the contract is signed by both parties, it becomes legally binding….