• Dangerous games

    Employers' body Neasa is playing a potentially dangerous game, says Terry Bell.

  • Rational thinking

    All players should first consider the net result of their actions, says Leopold Scholtz.

  • Telkom's property poser

    BEE may be hindering Telkom's plans to offload redundant real estate, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Decision a boost for consumer rights

Dec 04 2012 15:56 Sapa

Related Articles

Bread class action bid gets new life

Joburg property rates 'unlawful'

Cosatu mulls challenge to strike ruling

Dos and dont's of returning goods

European charter to protect internet users

Regulator keeps right to accredit agents

 
Bloemfontein - Consumer rights have received a major boost with a recent Supreme Court of Appeal (SCA) decision, the National Credit Regulator said on Tuesday.

The SCA ruled in favour of the National Credit Regulator (NCR) against Standard Bank, for overcharging on administration fees on home loans granted under the Usury Act.

It stipulated that money lenders could not charge a fee of more than R5, excluding VAT, for administration.

The Usury Act has since been repealed by the National Credit Act (NCA).

However, the NCA includes transitional provisions relating to pre-existing agreements, and some of its provisions apply to pre-existing credit agreements which would have been subject to the NCA had it been in effect when the agreements were concluded.

The SCA held that Standard Bank was not entitled to charge an administration fee greater than that allowed by the Usury Act on home loans which existed at the time the NCA came into operation, until the fee is amended under the powers conferred by section 105(1) of the NCA.

NCR legal adviser Annemarie Friedman said the section indicated that the trade and industry minister could prescribe a method of calculating fees contemplated by the act.

"Since the NCA came into operation, the minister has not increased the home loan administration fees and the maximum of R5 is therefore still applicable," she said.

Friedman said consumers who entered into home loan agreements prior to June 1, 2007, with mortgage amounts less than R500 000 should check their bank statements to establish whether they had been overcharged on their home loan administration fees.

If so, they should approach the NCR or Standard Bank.
supreme court of appeal
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
13 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No need to keep up with the Joneses

Fin24 users provide their own personal tips on how to save money instead of trying to keep up with the Joneses.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...