National Credit Act, 2005 (Act No. 34 of 2005)
Chapter 6 : Collection, Repayment, Surrender and Debt Enforcement
Part A : Collection and repayment practices

124. Charges to other accounts

1)        It is lawful for a consumer to provide, a credit provider to request or a credit agreement to include an authorisation to the credit provider to make a charge or series of charges contemplated in section 90(2)(n), if such authorisation meets all the following conditions-

a)        the charge or series of charges may be made only against an asset, account, or amount that has been-

i)          deposited by or for the benefit of the consumer and held by that credit provider or that third party; and

ii)         specifically named by the consumer in the authorisation;

b)        the charge or series of charges may be made only to satisfy-

i)          a single obligation under the credit agreement; or

ii)         a series of recurring obligations under the credit agreement,

specifically set out in the authorisation;

c)        the charge or series of charges may be made only for an amount that is-

i)          calculated by reference to the obligation it is intended to satisfy under the credit agreement, and

ii)         specifically set out in the authorisation;

d)        the charge or series of charges may be made only on or after a specified date, or series of specified dates-

i)          corresponding to the date on which an obligation arises, or the dates on which a series of recurring obligations arise, under the credit agreement;

and

ii)         specifically set out in the authorisation; and

e)        any authorisation not given in writing, must be recorded electromagnetically and subsequently reduced to writing.

2)        Before making a single charge, or the initial charge of a series of charges, to be made under a particular authorisation, the credit provider must give the consumer notice in the prescribed manner and form, setting out the particulars as required by this subsection, of the charge or charges to be made under that authorisation.

3)        If there is a conflict between a provision of this section and a provision of the National Payment Systems Act, 1998 (Act No. 78 of 1998), the provisions of that Act prevail.

125. Consumer's or guarantor's right to settle agreement

1)        A consumer or guarantor is entitled to settle the credit agreement at any time, with or without advance notice to thecredit provider.

2)        The amount required to settle a credit agreement is the total of the following amounts:

a)        The unpaid balance of the principal debt at that time;

b)        the unpaid interest charges and all other fees and charges payable by the consumer to the credit provider up to the settlement date; and

c)        in the case of a large agreement-

i)          at a fixed rate of interest, an early termination charge no more than a prescribed charge or, if no charge has been prescribed, a charge calculated in accordance with sub-paragraph (ii); or

ii)         other than at a fixed rate of interest, an early termination charge equal to no more than the interest that would have been payable under the agreement for a period equal to the difference between-

aa)      three months; and

bb)      the period of notice of settlement if any, given by the consumer.

126. Early payments and crediting of payments

1)        At any time, without notice or penalty, a consumer may prepay any amount owed to a credit provider under a credit agreement.

2)        A credit provider must accept any payment under a credit agreement when it is tendered, even if that is before the date on which the payment is due.

3)        A credit provider must credit each payment made under a credit agreement to the consumer as of the date of receipt of the payment, as follows:

a)        Firstly, to satisfy any due or unpaid interest charges;

b)        secondly, to satisfy any due or unpaid fees or charges; and

c)        thirdly, to reduce the amount of the principal debt.