The introductory fee is intended to cover the cost of launching a credit contract, although it is not clear what the costs are to cover. This is a one-time payment made by the consumer at the time of the conclusion of the credit contract or to be paid in increments (in the form of a separate loan attracting interest). Over-indebtedness is often a disastrous consequence of the high cost of credit. Levenstein summarizes this situation: a credit facility is an agreement by which a credit provider provides goods or services or pays an amount to the consumer. The consumer`s obligation to pay the price or refund the money is set aside, for which the consumer pays interest and fees. For example, a credit facility, the borrowing rates offered by credit providers are regulated with respect to different ceilings applicable to different categories of credit contracts, and the reserve bank repository (« RR ») is used as a repository. Consumers have the right to obtain an offer and a credit contract in an official language that they read or understand, as long as it is reasonable. All documents that are not required must be available in a plain language (a language that an ordinary consumer understands with average reading and writing skills and minimal credit experience). Small, medium and large credit contractsThe law has divided credit contracts into the following categories: For example, when a customer enters into a credit and supply contract with a fishing rights holder who is a legal entity and whose wealth or annual turnover exceeds one million rand or if the amount borrowed exceeds two hundred and fifty thousand rand , the provisions of the Credit Contracts Act do not apply. Overall, the strength of the national credit regulator, the extensive powers of the National Consumer Court and the courts, the almost paternalistic tendency of lawmaker protection and the vast network of dispute settlement accounts for consumer legislation, which will have a huge impact on the huge credit industry in South Africa.  4.1.3 A credit contract entered into by a credit provider that must be registered in accordance with the law but is not registered in this way is an illegal and unvenueed agreement, to the extent that a court must order that all rights of the lender under the credit contract are to recover the money paid or that was provided to the consumer within the meaning of the agreement. , would either lead to undue enrichment of the consumer or to a forfeiture of the state if the court concluded that, in the present circumstances, the abrogation of those rights would unfairly enrich the consumer.
A credit contract can only be declared unwise if it is established that the consumer is over-indebted. If the debtor finds that the consumer is not over-indebted and feels that one or more credit contracts are reckless, these agreements should not be declared unwise. As a result, credit providers may continue to impose credit contracts that are in fact reckless but not formally declared unwise. 6.2.3 A clause purporting to designate a lender or an employee or representative of the lender as the consumer`s representative. There are, however, a few exceptions to this rule. The creditor may be appointed as the debtor`s agent for, among other things, organizing taxes, licences, registration fees, rights or fees. Therefore, if necessary, the client could continue to be designated as a debtor in order to withdraw a debtor`s fishing licence, apply for tax certificates or pay his fishing taxes. Interest rates and fees are only maximum amounts.