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National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 5 : Consumer Credit Agreements

Part C : Consumer’s liability, interest, charges and fees

102. Fees or charges


(1) If a credit agreement is an instalment agreement, a mortgage agreement, a secured loan or a lease, the credit provider may include in the principal debt deferred under the agreement any of the following items to the extent that they are applicable in respect of any goods that are the subject of the agreement—
(a) an initiation fee as contemplated in section 101(1)(6), if the consumer has been offered and declined the option of paying that fee separately;
(b) the cost of an extended warranty agreement;
(c) delivery, installation and initial fuelling charges;
(d) connection fees, levies or charges;
(e) taxes, licence or registration fees; or
(f) subject to section 106, the premiums of any credit insurance payable in respect of that credit agreement.


(2) A credit provider must not—
(a) charge an amount in terms of subsection (1) unless the consumer chooses to have the credit provider act as the consumer’s agent in arranging for the service concerned;
(b) require the consumer to appoint the credit provider as the consumer’s agent for the purpose of arranging any service mentioned in subsection (1); or
(c) charge the consumer an amount under subsection (1) in excess of—
(i) the actual amount payable by the credit provider for the service, as determined after taking into account any discount or other rebate or other applicable allowance received or receivable by the credit provider; or
(ii) the fair market value of a service contemplated in subsection (1), if the credit provider delivers that service directly without paying a charge to a third party.


(3) If the actual amount paid by a credit provider to another person is not ascertainable when the consumer pays an amount to the credit provider for a fee or charge contemplated in subsection (1) and if, when it is ascertained, it is less than the amount paid by the consumer, the credit provider must refund or credit the difference to the consumer.