INCLUSION OF INITIATION FEES IN THE DEFERRED AMOUNT
It has come to the attention of the National Credit Regulator that some credit providers include initiation fees
in the deferred amount of unsecured and short-term loans and levy interest on the deferred amount inclusive
of the initiation fees.
In terms of Section 102 of the National Credit Act, an initiation fee may be included in the principal debt
deferred under an instalment agreement, a mortgage agreement, a secured loan or a lease.
Where the consumer is unable to pay an initiation fee upfront on an unsecured or short-term loan, the credit
provider must reflect the initiation fee separately on the credit agreement and not charge interest on the
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