Most of the provisions of a credit contract are developed to deal with the situation. However, credit contracts often contain common provisions. These include provisions that describe the following. A borrower may terminate an open agreement at any time, subject to notice that may not exceed one month. As a creditor, you must have a minimum of two months` notice period to terminate the agreement, which must include fair reasons for termination. Some situations are excluded from this notice period, for example to prevent crime. Before entering into a credit contract, the lender must provide the consumer with a free declaration and offer in the form prescribed by the regulation (form 20 of the settlement, for small credit contracts). No agreement has been reached at this stage; the consumer is not obliged to sign or pay a tax. This is a new evolution of the law that aims to protect consumers. This document should contain the financial details of the proposed agreement (for example.
B the amount of credit provided, the number and amount of payments, interest and other fees, payment required and credit insurance). Consumers must accept or reject the offer within five days to allow them to purchase for better or cheaper credits. Once the offer is accepted by the consumer, the credit contract can be concluded on its own. Credit contracts for individuals vary depending on the type of credit issued to the customer. Customers can apply for credit cards, private loans, mortgages and revolving credit accounts. Each type of credit product has its own industry credit contract standards. In many cases, the terms of a credit contract for a retail credit product are made available to the borrower in his or her credit application. Therefore, the application for credit can also be used as a credit contract.
Institutional credit contracts generally include a lead underwriter. The underwriter negotiates all the terms of the credit agreement. Terms and conditions include interest rates, terms of payment, duration of credit and possible penalties for late payments. Insurers also facilitate the participation of several parties to the loan as well as all structured tranches that may have their own terms individually. Unsecured loans are usually small financial loans (microcredits) repaid in tranches, as the lender does not have a guarantee for debt repayment. Microcredit as a category of NCR is generally intended for credit providers who can borrow a ceiling of R8,000 for up to 6 months. However, there are types of credit contracts that the Consumer Credit Act does not cover. These include gas, electricity and water meter contracts, mortgages, credit unions and money borrowed by Dencern, to name a few.
The National Credit Act is a complex and time-consuming law that attempts to regulate precisely every consumer credit sector. The final provisions of the Act will come into force on June 1, 2007. The Act repealed the Usury Act and the Credit Agreements Act and bears little resemblance to these statutes. It`s a clear break with the past. All consumer credit law is included in the law applicable to all credit contracts and credit providers. If the proceeds of the sale are not sufficient to settle the account, the creditor can go to court to recover the remaining balance owed. This applies to staggered contracts, secured credit or leasing. Surprisingly, there is no mortgage agreement on this list. This implies that the mortgage (a bank, usually) can only rely on the proceeds of the sale of the property to pay the account – even if that is not enough, and even if the Mortgagor (the debtor) is very rich and has other assets that could be added. You should not harass debtors or use “undesirable” collection methods, for example. B, send documents that look like a subpoena or other official documents.