National Credit Act, 2005 (Act No. 34 of 2005)Chapter 6 : Collection, Repayment, Surrender and Debt EnforcementPart A : Collection and repayment practices125. Consumer's or guarantor's right to settle agreement |
| (1) | A consumer or guarantor is entitled to settle the credit agreement at any time, with or without advance notice to the credit provider. |
| (2) | The amount required to settle a credit agreement is the total of the following amounts: |
| (a) | The unpaid balance of the principal debt at that time; |
| (b) | the unpaid interest charges and all other fees and charges payable by the consumer to the credit provider up to the settlement date; and |
| (c) | in the case of a large agreement— |
| (i) | at a fixed rate of interest, an early termination charge no more than a prescribed charge or, if no charge has been prescribed, a charge calculated in accordance with subparagraph (ii); or |
| (ii) | other than at a fixed rate of interest, an early termination charge equal to no more than the interest that would have been payable under the agreement for a period equal to the difference between— |
| (aa) | three months; and |
| (bb) | the period of notice of settlement if any, given by the consumer. |