National Credit Act, 2005 (Act No. 34 of 2005)Chapter 5 : Consumer Credit AgreementsPart F : Rescission and termination of credit agreements121. Consumer's right to rescind credit agreement |
| (1) | This section applies only in respect of a lease or an instalment agreement entered into at any location other than the registered business premises of the credit provider. |
| (2) | A consumer may terminate a credit agreement within five business days after the date on which the agreement was signed by the consumer, by— |
| (a) | delivering a notice in the prescribed manner to the credit provider; and |
| (b) | tendering the return of any money or goods, or paying in full for any services, received by the consumer in respect of the agreement. |
| (3) | When a credit agreement is terminated in terms of this section, the credit provider— |
| (a) | must refund any money the consumer has paid under the agreement within seven business days after the delivery of the notice to terminate; and |
| (b) | may require payment from the consumer for— |
| (i) | the reasonable cost of having any goods returned to the credit provider and restored to saleable condition; and |
| (ii) | a reasonable rent for the use of those goods for the time that the goods were in the consumer’s possession, unless those goods are in their original packaging and it is apparent that they have remained unused. |
| (4) | A credit provider to whom property has been returned in terms of this section, and who has unsuccessfully attempted to resolve any dispute over depreciation of that property directly with the consumer and through alternative dispute resolution under Part A of Chapter 7, may apply to a court for an order in terms of subsection (5). |
| (5) | If, on an application in terms of subsection (4), a court concludes that the actual fair market value of the goods depreciated during the time that they were in the consumer’s possession, a court may order the consumer to pay to the credit provider a further amount not greater than the difference between— |
| (a) | the depreciation in actual fair market value, as determined by the court; and |
| (b) | the amount that the credit provider is entitled to charge the consumer in terms of subsection (3)(b). |