Temperate contracts sell personal goods (such as furniture, clothing or a car), the price is paid in installments and the item is delivered to the consumer. The consumer only becomes the owner when all payments are paid. Every adult has the right to apply for a loan, but no one has the right to get credit. A lender may choose to refuse credit on reasonable business grounds, but should not unfairly discriminate against a consumer against other consumers on the basis of race, religion, pregnancy, marital status, ethnic or social origin, sex, sexual orientation, age, disability, culture, language Etc. A consumer may demand reasons for denial of credit that must be communicated in writing by the credit provider. The drastic reduction in interest rates conceals or conceals the actual cost of credit when initiation and service fees are added. These fees may remain largely hidden, with an emphasis on interest rates (better known to consumers) when products are marketed. Fees help keep interest rates low, which makes credit cheaper, although credit is not cheaper. Abandoning the cost of credit away from interest and fees (which consumers do not know about) will increase the likelihood that consumers will be misled about the actual cost of credit. Many are attracted to borrow money that will cost much more than they originally anticipated. It is important that paralegales understand the risk that this concealment of the actual cost of credit will occur in order to warn their customers of this danger. A much larger number of applications for default judgments on credit contracts must now be referred to a judge instead of being dealt with by the court administrator. This will significantly increase the workload of judges and could result in much longer debt enforcement procedures, which could lead to frustration among credit providers.
In this document, credit is referred to as a “double-edged sword” since power between consumers and credit providers has a “considerable power imbalance” due to poor level of consumer education and knowledge of consumer rights and that these rights cannot be implemented through negotiation or legal action. In certain circumstances, consumers may terminate contracts (in writing and formal form) within five business days of signing. This cooling fee applies only to leases and temperance contracts in a location other than the lender`s registered premises. As a general rule, this right applies to increments (such as cars, books, household appliances) made at the consumer`s home or workplace. The consumer must return the purchased goods and the credit provider must repay the amounts paid by the consumer within seven days of the termination, minus the following information: 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) Before entering into a credit agreement, the lender must submit a free declaration and offer to the consumer in the form prescribed by the regulation (form 20 of the regulations, for small credit contracts). No agreement has been reached at this stage; the consumer is not obliged to sign or pay a tax.
This is a new evolution of the law that aims to protect consumers.