The offer before the contracts gives the consumer a five-day cooling-off period to review and accept the credit agreement and, if accepted, the credit provider must conclude the contract at the rates indicated. This provision helps to prevent credit providers from taking shortcuts by simply accepting debtors who appear to be solvent at face value. A lender may use its own valuation mechanisms, provided they are fair and objective. The consumer, for his part, must provide the requested information in a complete and truthful manner. Otherwise, the lender could provide a full defense against the ruthless loan charges. 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. With regard to each credit agreement, credit providers are required to provide the following information: where a credit agreement proves to be illegal, a court must order An affordability check is an assessment process conducted by a credit provider with a consumer to determine whether or not the consumer has credit. The affordability assessment determines whether or not the consumer can meet his or her obligations under a credit agreement. Reckless credit is credit granted to a consumer under a credit agreement in which the lender: mortgage contracts are cash loans secured by the registration of a mortgage on land the proceeds of which are generally used for the purchase of land or housing. It is therefore advisable that any lender turn to his lawyer to determine whether he must register as a lender within the meaning of the provisions of the law. Does the notice of delay really have to reach the consumer to be effective? In Sebola v Standard Bank, the Constitutional Court held that, although there is no clear meaning for « delivering », the law requires the lender to prove, during the performance of a credit agreement, that the notification has been served on the consumer. Where the creditor publishes the notification, proof of the registered dispatch to the consumer`s address, together with proof that the communication was obtained by the post office competent for notification to the consumer, shall constitute sufficient proof of service (unless otherwise specified).
Unsecured monetary credits are generally smaller monetary credits (microcredits) repayable in tranches, with no guarantee for the lender for debt repayment. Microcredit, a category of the NCR, is generally aimed at solvent providers who can borrow a maximum of R8,000 for a maximum period of six months. Conversely, where a creditor does not renew credit within the meaning of a credit agreement within the meaning of the law, that credit agreement is not governed by law at all and is therefore not taken into account in determining whether the creditor must register as a creditor, even though certain other provisions of the law may remain applicable to that credit agreement. depending on the nature of the agreement. . . .