If a consumer is late, the credit provider must inform the consumer in writing of its failure. It is in fact a letter of claim. However, the communication must do more: the credit provider must propose to the consumer that the consumer pass on the credit contract, among other things, to a debt advisor in order to resolve the dispute or to agree on a plan to update the payments. The consumer has an obligation to inform the lender of one of the following changes: Mortgage contracts are cash loans secured by the registration of an onshore mortgage and whose income is generally used for the purchase of land or housing. „short-term credit transactions,“ agreements of up to R8,000 that can be repaid within six months; Generally, these are microcredits. The maximum allowed rate is 5% per month or 60% per year. 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. If the loan is not subject to the ANCA, credit insurance on the property is also not subject to the ANCA.
After reading the credit contract correctly, Sarah accepts all the terms described in the agreement by meaning it. The lender also signs the credit agreement; after the signing of the agreement by both parties. Credit contracts can only be amended in specific circumstances, such as reducing or increasing credit limits. Then a debt check must take place. The debtor advisor must notify all credit providers and credit bureaus mentioned in the application; they must cooperate fully with the debtor advisor. The debtor advisor must then assess the consumer`s indebtedness. The assessment may have one of three possible outcomes: rents for personal property – i.e. not the country or housing – would include, for example, a fax machine or a motor vehicle, with rent being paid in increments, with fees and interest. (If interest and fees are not collected, it is not a credit transaction within the meaning of the law).) The total slices generally amount to the value of the article let. Once all payments are paid, the property is transferred to the consumer. This goes against the general right to rent. However, if the agreement provides that the property remains in the hands of the owner, it is still a credit transaction within the meaning of the law.