The debt advisor will help the client reorganize/restructure his obligations in negotiations with his credit providers, depending on the amount the consumer can afford to pay each month for his debts. Some information about credit contracts concluded before the law came into force must also be provided. This registry is available to anyone who requests it in the prescribed form. It will also provide a way to monitor South Africa`s debt, as the NCR is required to do. The introductory fee is intended to cover the cost of launching a credit contract, although it is not clear what the costs are to cover. This is a one-time payment made by the consumer at the time of the conclusion of the credit contract or to be paid in increments (in the form of a separate loan attracting interest). Auxiliary credit contracts are not covered by the definition of credit contracts in the act. Section 5 defines the limited provisions of the law that apply to them. 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 law contains only a relatively short list of offences that are the subject of criminal prosecution. On the other hand, the Usury Act provided that anyone who violated a provision of the law would commit a crime. For example, it was an offence to collect interest higher than the Usury Act Maximum, which is no longer the case. In certain circumstances, consumers may terminate contracts (in writing and duly provided) 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.