National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 5 : Consumer Credit Agreements

Part C : Consumer’s liability, interest, charges and fees

104. Changes to interest, credit fees or charges

Purchase cart Previous page Return to chapter overview Next page

 

(1)A credit provider must not unilaterally increase—
(a)the periodic or incidental service fees, or the method of calculating such fees, that may be charged under the credit agreement; or
(b)the rate of interest applicable to a credit agreement, except with respect to a credit agreement with a variable interest rate.

 

(2)Except as otherwise provided for in this section, a credit provider must give written notice of at least five business days to the consumer setting out particulars of a change concerning—
(a)the rate of interest;
(b)the amount of a credit fee or charge; or
(c)a change in the frequency or time for payment of a credit fee or charge.

 

(3)In respect of a credit agreement that has a variable interest rate, the credit provider must give written notice to the consumer, no later than 30 business days after the day on which a change in the variable interest rate takes effect, setting out—
(a)the new rate and any further prescribed information; or
(b)if a rate is determined by referring to a reference rate as contemplated in section 103(4), the new reference rate.