To promote transparency the following must happen before entering into a credit agreement:
- Credit providers must:
- Deliver to the consumer a pre-agreement statement containing relevant terms and conditions of the credit - this will be presented at the attorney's offices
Cancellation Of Mortgage Agreements
Penalty fees have been prohibited by the Act, but cancellation fees are still allowed.
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Find out moreCalculation of the fee has remained similar to the current calculation:
- The charge/fee may not exceed the interest that would have been levied on the account for the period equaling a 3 months notice period, i.e.
- If the client gives 3 months notice
- The fee will be R30 (3-3)
- If the client gives 2 months notice
- The fee will be equal to 1 month's interest (3-2)
- If the client gives 3 months notice