The National Credit Act stipulates that there should be freedom of choice for consumers.
1. Credit providers may require a consumer:
• To maintain life assurance for the period of the agreement
• To maintain home-owners insurance on the value of the property
• Mortgage agreements
2. Credit Provider may not offer/demand consumers pay or maintain insurance which is unreasonable or at an unreasonable cost.
3. The consumer must be given the option to take out insurance of his/her choice
4. If the client elects his/her own insurance:
• The credit provider may debit the consumers account with the premium
Before entering into a credit agreement, credit providers must:
• Deliver a written quote that contains all of the financial details of the transactions instalment, interest rates, insurance premiums and all costs and fees.
• The quote is valid for five days