Unsecured loans are usually small financial loans (microcredits) repaid in tranches, as the lender does not have a guarantee for debt repayment. Microcredit as a category of NCR is generally intended for credit providers who can borrow a ceiling of R8,000 for up to 6 months. The consumer is required to notify the credit provider of one of the following changes: secured bank loans, credit card accounts or cheque accounts fall under the “credit facility” category. The maximum interest rate is also linked to the SARB Bank Repurchase Rate and is currently 29.8 per cent per annum. If a consumer is late in a credit contract and the credit provider has already started a debt enforcement procedure, the agreement may not be possible. This could encourage credit providers to initiate debt collection proceedings earlier than they would otherwise have done. Overall, the strength of the national credit regulator, the extensive powers of the National Consumer Court and the courts, the almost paternalistic tendency of lawmaker protection and the vast network of dispute settlement accounts for consumer legislation, which will have a huge impact on the huge credit industry in South Africa. [12] For mortgage loan contracts, the maximum interest rate is 24.9% per annum. The pre-agreement offer gives the consumer five days to review and accept the credit contract and, if the credit provider is accepted, must enter into the contract at the specified prices. 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. A consumer is over-indebted when available information indicates that the consumer is unable to pay in a timely manner the amounts due under a credit contract. In deciding whether a consumer is over-indebted or not, a court must consider the consumer document This document continues to be called a “double-edged sword” because the “considerable imbalance of power between consumers and credit providers” is a duty of credit providers because of the poor level of consumer education and knowledge of consumer rights and the inability to enforce these rights through negotiations or actions. in court. Credit providers` obligations are heavy; they bear many administrative burdens. Some of the lender`s most important tasks are when the proceeds of the sale are insufficient to settle the account, the credit provider may issue the court with an order to recover the remaining balance owed.