Service charges are defined as a fee that can be charged by a credit provider at regular intervals (usually monthly) in relation to the routine administrative costs associated with maintaining a credit contract. The maximum service fee in the form of regulations is R50 per month or R600 per year. All categories and sizes of credit contracts are subject to the same maximum « flat rate » tax of R50. It appears that the service commission has been standardized to simplify the application of the law, which is justified by the fact that every loan, regardless of size, must be managed. A « credit transaction » can refer to one of the different types of transactions. Most important for current purposes are the provisions of the National Credit Act that have made great strides towards consumer protection, and the new interest rate limits will provide welcome relief for many borrowers. However, the combined effect of interest, introductory fees and service charges will result in the cost of credit for small credits remaining exorbitant. This will have devastating adverse effects on the poorest people and communities. A student loan could, for example, be granted to an unemployed consumer who may not have a credit file (so that the lender does not know its payment history). The consumer may not be solvent and there is no security. The nature of these agreements excludes reckless loans.

An illegal provision is null and fore. Whenever a court has a case involving a credit contract containing an illegal provision, it can be extremely difficult for consumers to find the money to pay the initiation fee in advance at a time when they are borrowing precisely because they need cash. As a result, most lenders will not be able to afford to pay the introductory fee for the loan, particularly in the case of very bad consumer borrowing. These individuals will therefore be required to capitalize and repay the introductory tax, probably in the same number of payments as the initial loan and subject to the same interest rate as the original loan. The result will be that actual monthly borrowing costs will increase. The rental of personal property – that is, no land or dwelling – would include, for example, a fax machine or a motor vehicle, with rent in increments, fees and interest.