BER 210- Ch 14: Termination of Credit Agreements,

Repayment, Debt enforcement, dispute settlement

RESCISSION AND TERMINATION OF CREDIT AGREEMENTS:
• Cooling-off right: Consumer’s right to rescind/cancel credit agreement without a
reason: only if:
• lease OR instalment agreement;
• Entered into at any location other than business premises of credit provider
• within 5 business days after date signed
• delivering written notice to the cr provider
• Offer return of any goods/money to the cr provider
• Cr provider must refund and money the cons has paid under the agreement
• When consumer may terminate credit agreement:
• Right to settle an agreement at any time by paying the settlement amount (total principle debt
still outstanding with the interest due and payable up to the date of the settlement)
• Surrender of goods
• only instalment agreement, secured loan, lease
• consumer may give written notice to terminate agreement
• if goods still in credit provider’s possession, require to sell
• otherwise return goods to credit provider’s place of business
 REPAYMENT & DEBT ENFORCEMENT
• Early payments:
• Consumer may prepay any amount owed to cr provider
• At any time without notice or penalty
• Cr provider has to accept payment even if its before the due date
• Cons is entitled to pay bigger instalments than the agreed instalments (despite the loss of interest of the cr
provider)
• Debt enforcement by repossession or judgement:
• Cons commit beach by mora debitoris by failing to pay instalments on time.
• Cr provider choose to either:
• Enforce payment of arrear instalments by claiming specific performance OR
• Cancel agreement and claim to repossess the goods
• Both instances may claim damages as a combination remedy
• Termination of credit agreement by credit provider:
• consumer in default enforce and terminate agreement by means of repossession or judgment
• required procedures prior to enforcement: If cons is in default, the cr provider has to draw the default to the
notice of the cons in writing by a Section 129(a) notice

DISPUTE SETTLEMENT OTHER THAN DEBT ENFORCEMENT:

• In the event of a contravention of the Acts provision, the aggrieved person ay direct complaint
to the Regulator- Complaints to NCR
• Alternative dispute resolutions (ADR) may also be used to resolve a dispute