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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

104. Changes to interest, credit fees or charges


(1) A credit provider must not unilaterally increase—
(a) the periodic or incidental service fees, or the method of calculating such fees, that may be charged under the credit agreement; or
(b) the rate of interest applicable to a credit agreement, except with respect to a credit agreement with a variable interest rate.


(2) Except as otherwise provided for in this section, a credit provider must give written notice of at least five business days to the consumer setting out particulars of a change concerning—
(a) the rate of interest;
(b) the amount of a credit fee or charge; or
(c) a change in the frequency or time for payment of a credit fee or charge.


(3) In respect of a credit agreement that has a variable interest rate, the credit provider must give written notice to the consumer, no later than 30 business days after the day on which a change in the variable interest rate takes effect, setting out—
(a) the new rate and any further prescribed information; or
(b) if a rate is determined by referring to a reference rate as contemplated in section 103(4), the new reference rate.