MFRC

 

Regarding dispute of interest rates

 

Contact details:

 

info@mfrc.co.za

info@mfrc.co.za

 

Alternate contact details are:
info@mfrc.co.za and complaints@mfrc.co.za 

 

As opposed to quite some time ago you may have
since noted that more caution has been exercised in applying interest
rates and you’re advised to contact above,

should you like to ascertain to what extent interest rate has been
adapted.

With reference to Contract & USURY ACT

This writing hereby applies to all account departments regarding copies of the
Usury Act, being of opinion that interest charged more than cumulative
annual 25% should be refunded.

Government Gazette 1June 1999
“In the schedule any word to which a meaning has been ascribed to it in
the Usury Act, shall have meaning as ascribed to it in the Act.

–        assuming include annual rate for charge of “annual interest rate.”

Definition:

1.1      “Annual rate for the total charge of credit” means total charge if
credit” means total charge of credit in respect of a money lending
transaction expressed as a nominal annual percentage rate.

Exemption is in condition as set out in schedule, thus as “any word shall
have meaning ascribed to it in the Act.” Interest rate would be deemed as
same as originally & exemption should only apply to Annexure A, being
Confidentiality, Disclosure, Consideration, Cooling-off Period &
Collection Methods.

Attention: With regards to MFRC
Read up: Usury Exempt – Gov. Gazette 1 June ’99 Vol. 408 No. 73 of 20148

In relation to micro loans, Government Gazette Volume 408 1 June 1999
states Notice in terms of Section 15A of the Usury Act, 1968 (Act. No. 73
of 1968):

In terms of above exempt money lending transactions  with exemption of
section 13, 614 & 17A of the Act.

Comments obtained from Usury Act (Maria Gaines, Butterworths)

–        Exorbitant interest rates currently charged by micro-lenders can hardly
be described as nominal as outlined in Usury Exemptions Notice
–        Read Quality Trade Contracts in SA

Micro loans

Government Gazette Volume 408 1 June 1999 No. 70145 DTI No. 713 Notice in
terms of Section 15A of the Usury Act, 1968 (Act. No. 73 of 1968)
In terms of the above exempt money lending transactions  with exemption of
section 13, 14 & 17A of the Act,

With sincere appreciation for your due consideration in this regard.

P.S. Re. hire-purchase agreement interest may be charged at maximum on
arrears accounts. Query & dispute interest rates on accounts by referring
to initial contract.

 

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