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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

126. Early payments and crediting of payments


(1) At any time, without notice or penalty, a consumer may prepay any amount owed to a credit provider under a credit agreement.


(2) A credit provider must accept any payment under a credit agreement when it is tendered, even if that is before the date on which the payment is due.


(3) A credit provider must credit each payment made under a credit agreement to the consumer as of the date of receipt of the payment, as follows:
(a) Firstly, to satisfy any due or unpaid interest charges;
(b) secondly, to satisfy any due or unpaid fees or charges; and
(c) thirdly, to reduce the amount of the principal debt.