National Credit Act, 2005 (Act No. 34 of 2005)
Chapter 5 : Consumer Credit Agreements
Part F : Rescission and termination of credit agreements

121. Consumer's right to rescind credit agreement

1)        This section applies only in respect of a lease or an instalment agreement entered into at any location other than the registered business premises of the credit provider.


2)        A consumer may terminate a credit agreement within five business days after the date on which the agreement was signed by the consumer, by-

a)        delivering a notice in the prescribed manner to the credit provider; and

b)        tendering the return of any money or goods, or paying in full for any services, received by the consumer in respect of the agreement.


3)        When a credit agreement is terminated in terms of this section, the credit provider-

a)        must refund any money the consumer has paid under the agreement within seven business days after the delivery of the notice to terminate; and

b)        may require payment from the consumer for-

i)          the reasonable cost of having any goods returned to the credit provider and restored to saleable condition; and

ii)         a reasonable rent for the use of those goods for the time that the goods were in the consumer’s possession, unless those goods are in their original packaging and it is apparent that they have remained unused.


4)        A credit provider to whom property has been returned in terms of this section, and who has unsuccessfully attempted to resolve any dispute over depreciation of that property directly with the consumer and through alternative dispute resolution under Part A of Chapter 7, may apply to a court for an order in terms of subsection (5).


5)        If, on an application in terms of subsection (4), a court concludes that the actual fair market value of the goods depreciated during the time that they were in the consumer’s possession, a court may order the consumer to pay to the credit provider a further amount not greater than the difference between-

a)        the depreciation in actual fair market value, as determined by the court; and

b)        the amount that the credit provider is entitled to charge the consumer in terms of subsection (3)(b).

122. When consumer may terminate agreement

1)        A consumer may terminate a credit agreement at any time by paying the settlement amount to the credit provider, in accordance with section 125.


2)        In addition to subsection (1), a consumer may terminate an instalment agreement, secured loan or lease of movable property, by-

a)        surrendering to the credit provider the goods that are the subject of that agreement in accordance with section 127; and

b)        paying to the credit provider any remaining amount demanded in accordance with section 127(7).

123. Termination of agreement by credit provider

1)        A credit provider may terminate a credit agreement before the time provided in that agreement only in accordance with this section.


2)        If a consumer is in default under a credit agreement, the credit provider may take the steps set out in Part C of Chapter 6 to enforce and terminate that agreement.


3)        A credit provider in respect of a credit facility may-

a)        suspend that credit facility at any time the consumer is in default under the agreement; or

b)        close that credit facility by giving written notice to the consumer at least ten business days before the credit facility will be closed.


4)        A credit agreement referred to in subsection (3) remains in effect to the extent necessary until the consumer has paid all amounts lawfully charged to that account.


5)        A credit provider may not close or terminate a credit facility solely on the grounds that-

a)        the credit provider has declined a consumer's request to increase the credit limit;

b)        the consumer has declined the credit provider's offer to increase the credit limit;

c)        the consumer has requested a reduction in the credit limit, unless that reduction would reduce the credit limit to a level at which the credit provider does not customarily offer or establish credit facilities; or

d)        the card, personal identification code or number or other identification device used to access that facility has expired.


6)        The unilateral termination of a credit agreement by a credit provider as contemplated in this section does not suspend or terminate any residual obligations of the credit provider to the consumer under that agreement or this Act.

Debt Counsellors

Marsia Kuypers

Tel: 082 396 2568

Fax: 086 556 3328

Area: Pretoria

Jan-Viljoen Coetzee

Tel: 084 549 1755

Fax: 086 621 9193

Area: Nina Park

Valerie Nakale

Tel: 018 381 8768

Fax: 018 381 8604

Area: Mafikeng

Dean Morris

Tel: 083 645 4094

Fax: 031 763 4363

Area: La Lucia

Joana Vivier

Tel: 053 832 6229

Fax: 086 543 4640

Area: Kimberley

Jacques Jooste

Tel: 011 794 7555

Fax: 011 794 9965

Area: Johannesburg

Marlene Stein

Tel: 012 667 4177

Fax: 086 527 2203

Area: Irene

Heidi Naude

Tel: 044 873 0281

Fax: 086 512 5012

Area: George

Herbert Theron

Tel: 011 472 0088

Fax: 086 655 6730

Area: Florida

Isabe Landman

Tel: 041 933 1189

Fax: 086 591 2676

Area: Despatch

Andiswa Tinto

Tel: 021 431 9134

Fax: 086 523 7084

Area: Cape Town

Jaco Janse Van Rensburg

Tel: 082 568 4969

Fax: 086 645 0389

Area: Barberton

Monique Snyders

Tel: 032 946 3024

Fax: 086 588 4605

Area: Ballito

Christopher Beukes

Tel: 084 2577599

Fax: 021 637 5023

Area: Athlone

Lydia Kinnear

Tel: 082 824 6338

Fax: 086 537 5976

Area: Annlin

Anlizette Schuurman

Tel: 031 903 3840

Fax: 031 701 5570

Area: Amanzimtoti

Kelebogile Mooketsi

Tel: 082 299 3430

Fax: 086 695 3280

Area: Amandasig

Annerie Marais

Tel: 083 703 0486

Fax: 045 838 6572

Area: Aliwall North

Rerandzo Mokgwatlheng

Tel: 082 430 6329

Fax: 011 805 8348

Area: Alexandra Township

Daniel Lezar

Tel: 011 907 1022

Fax: 011 907 1490

Area: Alberton