The early termination of credit agreements in terms of the National Credit Act 34 of 2005

Abstract

This dissertation discusses and investigates the early termination of credit agreements by consumer in terms of the National Credit Act 34 of 2005 (National Credit Act). The dissertation aims to critically analyse and interrogate the rights of consumers to terminate agreement before the time allowed for in the credit agreement. My dissertation consists of four chapters. Chapter 1 is a general background and introduction to the dissertation and also provides the problem statement together with the research objectives. A short overview regarding the aspects which will be discussed in each subsequent chapter are also addressed in this chapter. Chapter 2 discusses the overview of the general principles (common law) of early termination of credit agreements in South Africa. Chapter 3 concerns the investigation of consumer’s rights in terms of the National Credit Act to terminate the credit agreements early. The National Credit Act, drastically, gives the consumer a right to terminate the credit agreements and therefore it is necessary for purposes of this dissertation to fully dissect the circumstances under which the consumer can exercise the right to terminate the credit agreements early. This dissertation, to a certain extent, also seeks to demonstrate the changes or influence that the National Credit Act has brought on the common law principles regarding the termination of credit agreements. Chapter 4 involves my comprehensive final conclusions and recommendations in relation to the heightened consumer protection by the National Credit Act as well as areas that requires further improvement to strengthen the consumer rights to termite the credit agreements early.