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Loans we offer range from R 500 - R 150 000
Our payment terms for loans range from 1 month to 48 months
Interest rates are based on clients individual application and do comply with the National Credit Act
We comply with all the NCR regulations

 

Implications of Late & None Payments

We fully support the National Credit Act. It's our aim to meet your loan needs in a responsible manner. The only way costs will mount beyond our initial calculation is if you don't keep your promise. In other words, if you ask our service providers to change your repayment date, or don't ensure sufficient funds are available for automatic collection. If there is an early morning collection attempt is declined by your bank - because you haven't made sure there are enough funds available - they will do their best to contact you throughout the day. They always hope to resolve the situation that day but your bank may charge you for not having sufficient funds available in your account.

They will then make further attempts to collect the money from your account and their professional collections team will also keep trying to contact you to discuss the situation. If your circumstances have changed significantly, they will do their best to offer a solution and come to an arrangement that helps you get back on track.

They will try their utmost to keep penalty fees and charges to a minimum but interest and service fees will continue to mount on your balance for up to 90 days if they can't reach a fair agreement in the meantime. If you don't work with them and they can't recover the money over a reasonable period, your account may be passed to an external collections partner.

Continued failure to repay a loan will also mean credit bureaus will record the outstanding debt. Records remain on file for a number of years after they are closed, whether settled by you or defaulted.

 

Renewal Policy

We do assist clients with more than 1 active loan as long as their current loan with our providers is up to date. Once you made 3 payments on your current loan you can apply for another loan with us. We will work out if you do qualify for another loan according the NCR rules as with the first loan

 

The Act:

·         Provides one set of rules for all credit & loan activities

·         Aims to prevent reckless lending and over-indebtedness

·         Establishes new and improved rights for credit consumers

 

 

Implications

 

Max Interest rates and Fee`s (APR)

Please note that interest and fees are charged by the various credit providers in accordance with the National Credit Act no 34 of 2005 and are set out below:

Small unsecured credit agreements with loan amounts from R0 – R8000.00 and with a loan repayment period of 0-6 months are calculated at a rate of 5% per month. Unsecured credit transactions with loan amounts of R8000.01+ or a loan taken over a repayment period longer than 6 months will be calculated at (RR x 2.2) + 20% per year. RR indicates the reference rate, being the ruling SA Reserve Bank Repurchase Rate.

Initiation fee is R150.00 per credit agreement, + 10% of the amount of the agreement in excess of R1000.00 but never to exceed R1000.00 excl. Vat

Monthly NCA service fee is R57.00 incl. Vat.

 

Implications of non or late payment

It is in your best interest to contact a credit provider should something happen and you will not be able to meet your payments as per the credit agreement. The credit provider will then try to assist with alternative arrangements that will be acceptable by both parties.

In the event of late payment interest will be charged in accordance with the NCA. This interest will be calculated monthly and may be added daily to your account. Short term unsecured credit transactions (Loans between R 0.00 and R8000.00 with a repayment period of 6 months) will be calculated at the same interest rate as your original agreement which is 5% per month in accordance with the National Credit Act.

With unsecured credit transactions (Loans above R8000.00 or with a repayment period longer than 6 months) the interest rate will be calculated and added to your account by using this formula.(RR x 2.2) + 20% per year. RR indicates the reference rate, being the ruling SA Reserve Bank Repurchase Rate. This amount will also be calculated monthly and may be added daily in accordance with the NCA.

Other default administration charges that will be added to your account will be in terms of Regulation 46 of the National Credit Act no 34 of 2005.

Should your failure to pay continue you will be contacted by the Credit provider in an attempt to resolve your account or to discuss a plan of action to bring the account up to date.

Continued failure to meet your obligations in terms of the Credit Agreement may result in you being handed over to attorneys by the credit provider in order to apply to a court to enforce their rights under the credit agreement and your obligation to pay under such an agreement. You will then be liable for all legal cost  which may include but are not limited to:

·         Legal fees on a “client attorney scale”

·         Collection charges and tracing fees

·         sheriff fees and revenue stamps

Note that any failure to pay may reflect adversely on your credit record with credit bureaus and may have a negative impact on future credit applications.

Judgment may also be (taken) issued against you in a magistrates court to enforce the rights of the credit provider which may also influence future credit applications negatively.

 

·         30 days late

This record will damage your credit scores only when it is reported as currently 30 days late. The exception is if you are 30 days late often. Otherwise, a 30-day late payment will not cause lasting damage.

·         60 days late

This record will also damage your credit scores when it is reported as currently 60 days late. Again, the exception is if you are 60 days late often. Otherwise, it will not cause long term damage.

·         90 days late

This record will damage your credit scores significantly for up to 7 years. It doesn't make a difference whether or not your account is currently 90 days late. Remember, the goal of the scoring model is to predict whether or not you will pay 90 days late or later on any credit obligation. By showing that you have already done so means that you are more likely to do it again compared to someone who has never been 90 days late. As such, your credit scores will drop.

·         120+ days late

Late payment reporting beyond the initial 90 day missed payment does not cause additional credit score damage directly. However, there is an indirect impact to your scores. At this point, your debt is usually charged off or sold to a 3rd party collection agency. Both of these occurrences are reported on your credit files and will lower your credit scores further.

If you continue to miss your payments beyond 90 or 120 days, the following records may also harm your credit score:

·         Collections

Collections are the result of late payments. There are two types of collections; those that have been sold to a 3rd party collection agency or those that have been turned over to an internal collection department. Regardless of which one shows up on your credit reports, your scores will suffer.

·         Settlements

Settlements are deals made between you and a creditor who is trying to collect a past due debt. Normally, you and the creditor would agree on an amount that is less than what you really owe them. Once you pay them, they consider the matter closed and paid off. However, they will report that you have made a debt settlement for less than your contractual obligation. This will hurt your scores as much as any other serious delinquency.

 

 

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