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

Chapter 6 : Collection, Repayment, Surrender and Debt Enforcement

Part A : Collection and repayment practices

125. Consumer's or guarantor's right to settle agreement


(1) A consumer or guarantor is entitled to settle the credit agreement at any time, with or without advance notice to the credit provider.


(2) The amount required to settle a credit agreement is the total of the following amounts:
(a) The unpaid balance of the principal debt at that time;
(b) the unpaid interest charges and all other fees and charges payable by the consumer to the credit provider up to the settlement date; and
(c) in the case of a large agreement
(i) at a fixed rate of interest, an early termination charge no more than a prescribed charge or, if no charge has been prescribed, a charge calculated in accordance with subparagraph (ii); or
(ii) other than at a fixed rate of interest, an early termination charge equal to no more than the interest that would have been payable under the agreement for a period equal to the difference between—
(aa) three months; and
(bb) the period of notice of settlement if any, given by the consumer.