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Business Practices Committee Report 77

Financial Research Foundation (Pty) Ltd

6. Notification of a further section 8(1)(b) Investigation



It was stated above (see section 1) that the Minister, in Notice 2422 of 1998 in Government Gazette 19353, declared unlawful the business practice whereby interest recalculators accept up-front payments. In spite of the order by the Minister, the BPC unfortunately still received a steady flow of complaints against interest recalculators. It would appear that there were interest recalculators who eluded the order of the Minister. It came to the attention of the BPC, for example, that there are interest recalculators who now sell computer software programmes apparently to enable consumers to calculate fees, charges, and/or interest charged on their account, including accounts held at financial institutions. It further appears that consumers could be misled by statements made by these recalculators. The BPC thus resolved to revisit the business practices of interest recalculators, hence the following notice in Notice 517 of 1999 in Government Gazette No 19896 dated 1 April 1998.


"In terms of the provisions of section 8(4) of the Harmful Business Practices Act, 1988 (Act No 71 of 1988), notice is herewith given that the Business Practices Committee intends undertaking a further investigation in terms of section 8(1)(b) of the said Act into the business practices of interest recalculators. This would include a reconsideration of payment in advance for services to be rendered as well as other possible harmful business practices.


Interested parties were to make written representations regarding the investigation to the Secretary of the BPC.