Implementation of Geneva Conventions Act, 2012
R 385
Usury Act, 1968 (Act No. 73 of 1968)6. Reduction of instalments in the event of advanced payment, refinancing or consolidation of debt |
| 1) | Where the principal debt and finance charges offing by a borrower or a credit receiver in connection with a money lending transaction or credit transaction concluded before the date of commencement of the Limitation and Disclosure of Finance Charges Amendment Act, 1980, have, in terms of an agreement between himself and the moneylender or credit grantor concerned, to be paid in instalments over a period in the future and the finance charges form part of the said instalments, the borrower or credit receiver shall at all times be entitled to pay any instalment before it is due, and shall, if he pays all instalments still unpaid (not being the final instalment) in one amount, be entitled to a reduction of every instalment not due on the date upon which payment is thus effected, by an amount calculated at the rate of 7,5% per annum on such instalment in respect of the period by which the payment of the said instalment is advanced. |
| 2) | Where the principal debt and finance charges owing by a borrower or a credit receiver in connection with a money lending transaction or a credit transaction concluded before the date of commencement of the Limitation and Disclosure of Finance Charges Amendment Act, 1980, have, in terms of an agreement between himself and the moneylender or credit grantor concerned, to be paid in instalments over a period in ;he future and the finance charges form part of the said instalments, the borrower or credit receiver shall, if he enters into an agreement with the moneylender or credit grantor concerned in terms of which the said principal debt and finance charges have as from a stated date to be paid by way of smaller or larger instalments than the instalments agreed upon at the time of the conclusion of the transaction concerned, be entitled, for the purpose of the calculation of the amount still outstanding, to a reduction of every instalment which has to be paid in terms of the first-mentioned agreement but which is not due on the said date, by an amount calculated on the basis prescribed by subsection (1). |
| 3) | The provisions of subsection (2) relating to the calculation of the amount still outstanding shall mutatis mutandis apply also where a borrower and a moneylender or a credit receiver and a credit grantor agree, as from a fixed date and for the purpose of payment, to treat as a single debt two or more amounts which are owing and have to be paid in instalments as contemplated in the said subsection in respect of principal debt and finance charges in connection with various money lending transactions or credit transactions concluded before the date of commencement of the Limitation and Disclosure of Finance Charges Amendment Act, 1980. |
| 4) | A borrower or credit receiver shall not be entitled to any reduction referred to in subsection (1) or (2) where finance charges are not levied-- |
| a) | for the period by which the payment of an instalment is advanced; or |
| b) | in respect of an instalment which is not due on the date of arrangement is made in terms of subsection (2) or (3). |
