Special Investigating Units and Special Tribunals Act, 1996
R 385
National Credit Act, 2005 (Act No. 34 of 2005)Chapter 5 : Consumer Credit AgreementsPart F : Rescission and termination of credit agreements123. Termination of agreement by credit provider |
| (1) | A credit provider may terminate a credit agreement before the time provided in that agreement only in accordance with this section. |
| (2) | If a consumer is in default under a credit agreement, the credit provider may take the steps set out in Part C of Chapter 6 to enforce and terminate that agreement. |
| (3) | A credit provider in respect of a credit facility may— |
| (a) | suspend that credit facility at any time the consumer is in default under the agreement; or |
| (b) | close that credit facility by giving written notice to the consumer at least ten business days before the credit facility will be closed. |
| (4) | A credit agreement referred to in subsection (3) remains in effect to the extent necessary until the consumer has paid all amounts lawfully charged to that account. |
| (5) | A credit provider may not close or terminate a credit facility solely on the grounds that— |
| (a) | the credit provider has declined a consumer's request to increase the credit limit; |
| (b) | the consumer has declined the credit provider's offer to increase the credit limit; |
| (c) | the consumer has requested a reduction in the credit limit, unless that reduction would reduce the credit limit to a level at which the credit provider does not customarily offer or establish credit facilities; or |
| (d) | the card, personal identification code or number or other identification device used to access that facility has expired. |
| (6) | The unilateral termination of a credit agreement by a credit provider as contemplated in this section does not suspend or terminate any residual obligations of the credit provider to the consumer under that agreement or this Act. |
