Does standard communication really have to reach the consumer to be effective? In Sebola/Standard Bank,[14] the Constitutional Court held that, although the law does not have a clear meaning for “supply,” it requires the credit provider to demonstrate the application of a credit contract and proves that the notification was sent to the consumer. When the creditor publishes the notification, the proof of the shipment registered to the consumer, accompanied by proof that the communication has reached the corresponding post office for delivery to the consumer, constitutes sufficient proof of the delivery (in the absence of contrary evidence). Yes, for example. B, a credit card company provides you with a line of credit of $1,000 and you spend $500, you must use $500 for later use. If you pay only a minimum of $25 and the card has an APR of 19.9%, it would take you 25 months to pay for the credit card. With this rate, you would pay an additional $112 in interest for your initial purchase of $500. A consumer can return goods subject to a credit contract to a credit provider at any time, whether the consumer is late or not. The lender must then sell the merchandise and use the product to settle the account. With regard to the old Credit Contracts Act, this procedure applied only in cases of consumer delay. This new provision gives the consumer an extraordinary right to opt out of the agreement if he chooses to do so.

As you can see, the payment history is the biggest piece of the puzzle. Whatever type of credit you have, you want to make your payments on time. Any payment made more than 30 days after the due date is considered a late payment and can damage your creditworthiness. As this represents 35% of your credit history, this can have an effect. The law uses the term gender-neutral “ombude” (often referred to as mediator). The law provides that certain disputes between a financial institution (such as a bank) and a consumer arising from a credit contract may be referred to the appropriate ombudsman. The Ombudsman then acts as an intermediary between the institution and the consumer, with a complaint. The installment loan takes the form of a loan with a fixed loan amount, firm payments and a specified repayment plan.

Unlike revolving loans, the installment credit gives you a specific time frame to pay what you lend, usually over a period of months to several years. In addition, you do not have access to available credits as with a credit card – you borrow a lump sum and you get the total amount of the loan at a time. In the form of secured loans, money is paid and the lender receives a commitment for personal property or something of value as collateral for the repayment of the loan.