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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

105. Maximum rates of interest, fees and charges


(1) The Minister, after consulting the National Credit Regulator, may prescribe a method for calculating—
(a) a maximum rate of interest; and
(b) the maximum fees contemplated in this Part,

applicable to each subsector of the consumer credit market, as determined by the Minister.


(2) When prescribing a matter contemplated in subsection (1), the Minister must consider, among other things—
(a) the need to make credit available to persons contemplated in section 13(a);
(b) conditions prevailing in the credit market, including the cost of credit and the optimal functioning of the consumer credit market; and
(c) the social impact on low income consumers.


(3) When establishing regulations contemplated in this section, the Minister—
(a) must establish different maximums for credit agreements within each subsector of the consumer credit market; and
(b) may prescribe the method, consistent with section 101(3), for allocating service fees between the provision of credit and the provision of related financial services, in circumstances in which a credit provider offers multiple financial services under a single agreement.