STUDY UNIT 2: CHAPTER 13

Question 1

SECTION 100(1):

Answer 1

prohibits the credit provider from charging an amount to, or imposing a monetary liability on, a consumer in respect of:
a. a credit fee or charge prohibited by the Act
b. an amount exceeding the amounts regarding to fees or charges that may be charged in terms of the Act
c. interest under a credit agreement that exceeds the amount that may be charged consistent with the Act
d. any fee, charge or other amount payable by a credit provider to a third party in respect of a credit agreement.

Question 2

INCLUDED UNDER THE LISTED AMOUNTS THAT A CONSUMER MAY BE REQUIRED TO PAY IN TERMS OF S101(1) ARE:

Answer 2

1. the principal debt
2. an initiation fee
3. a service fee
4. interest
5. the cost of any credit insurance provided in terms of s106
6. default administration fee
7. collection costs

Question 3

THE IN DUPLUM RULE;

Answer 3

entails that a debtor who is in default is protected in respect of the indefinite accrual of interest and/or other costs.

Question 4

THE COMMON LAW IN DUPLUM RULE:

Answer 4

dictates that due but unpaid interest may not exceed the outstanding capital at the time.

Question 5

The Magistrate’s Court may subsequently:

Answer 5

• reject the debt counsellor’s recommendation or consumer’s application
• make an order declaring any credit agreement reckless
• make an order re-arranging the consumer’s obligations in the manner set out in section 87(7)(c)(ii)

Question 6

The consumer’s obligations may be re-arranged by:

Answer 6

• extending the period of the agreement and by reducing the amounts of each payment due accordingly
• postponing, during the specified period, the dates on which payments are due under the agreement