National Credit Act, 2005 (Act No. 34 of 2005)

Regulations

Purchase

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]