For the purposes of this question, a credit contract is an important contract when it comes to a mortgage contract. A consumer is over-indebted when available information indicates that the consumer is unable to pay in a timely manner the amounts due under a credit contract. In deciding whether or not a consumer is over-indebted, a court must take into account the policy framework of the 2004 Department of Trade and Industry, which describes credit as a „double-edged sword“: credit contracts can only be changed in specific circumstances, such as reducing or increasing credit limits. A credit bureau is a company that is responsible for receiving reports or investigating credit applications and agreements, payment designs and other consumer credit information. Credit bureaus are also responsible for the production and maintenance of data and the publication of consumer reports based on this data. As noted above, credit bureaus were required to register with the NCR by July 28, 2006. Credit agencies provide information that could prevent consumer over-indebtedness and reckless lending. In the form of secured loans, money is paid and the lender receives a commitment for personal property or something of value as collateral for the repayment of the loan. CREDIT AGREEMENT: A credit contract is entered into when a consumer buys goods or services on credit or borrows money from a credit provider for interest and/or fees. Guaranteed bank loans, credit card accounts or checking accounts are covered by the „credit facility“ category. The maximum interest rate is also linked to the SARB Bank Repurchase Rate and is currently 29.8 per cent per annum.
If a consumer is late, the credit provider must inform the consumer in writing of its failure. It is in fact a letter of claim. However, the communication must do more: the credit provider must propose to the consumer that the consumer pass on the credit contract, among other things, to a debt advisor in order to resolve the dispute or to agree on a plan to update the payments. The lender will not recover the money or property sold and the court will not have the power to order it.