National Credit Act, 2005 (Act No. 34 of 2005)RegulationsNational Credit Regulations, 2006Chapter 5 : Interest and FeesPart C : Interest applicable to different products44. Maximum service fee |
The maximum monthly service fee, prescribed in terms of section 105(1) of the Act, is R60.
[Words preceding regulation 44(1) substituted by regulation 5(a) of Notice No. 1080, GG 39379, dated 6 November 2015]
(1) | Where an annual service fee is levied, the applicable limit is |
(a) | the monthly limit on the service fee, multiplied by 12, and |
(b) | where the period for which the fee is levied is less than 12 months, the monthly service fee multiplied by the number of months in such a period. |
(2) | If a service fee is payable on a transaction basis, or on a combination of periodic and transaction bases, the total of such fees may not exceed the monthly or annual limit. |
(3) | The service fee covers the cost of administering a credit agreement which is the operational cost of the credit provider such as rent, labour, communication, banking, processing of repayments and any other costs related to the administration of a credit agreement. |
[Regulation 44(3) inserted by regulation 5(b) of Notice No. 1080, GG 39379, dated 6 November 2015]
(4) | A service fee must be charged for a calendar month in which it is due and payable and on a pro rata basis where the credit agreement was concluded during the course of that calendar month. |
[Regulation 44(4) inserted by regulation 5(b) of Notice No. 1080, GG 39379, dated 6 November 2015]