In duplum checker
1 point we are still verifying
- The Act does not say how payments made during default affect the limit; courts have considered this. KayaClear does not model payments during default and says so.
Your details
Charges since default use 72% of the limit.
Room left before the limit
R5 700.00
Section 103(5) of the National Credit Act.
- Limit on charges during default
- R20 000.00
- Most that may be owed in total
- R40 000.00
How we worked it out
- Unpaid principal balance when you defaultedR20 000.00
This is also the limit on charges that may build up during default.
- Interest charged since defaultR9 000.00
- Initiation and service fees charged since defaultR1 200.00
- Default administration charges and collection costsR3 500.00
- Credit insurance charged since defaultR600.00
- Total charges since defaultR14 300.00
- Amount above the in duplum limitR0.00
- This checks the limit in section 103(5) of the National Credit Act only. It does not take account of payments made during default, which the Act does not address directly, or of amounts after a court judgment.
- The principal debt is the amount deferred under the agreement, not the full balance on your statement if that already includes interest and fees. Ask the credit provider for a certificate of balance or statement that splits these out.
What section 103(5) says
Section 103(5): despite the common law or the agreement, the amounts in s101(1)(b) to (g) that accrue while the consumer is in default may not, in aggregate, exceed the unpaid balance of the principal debt at the time the default occurs.
Getting the figures
- Principal balance at default. This is the capital still owed, not a balance that already includes interest and fees. Ask the credit provider for a statement or certificate of balance.
- Charges since default. Add up the interest, fees, credit insurance and collection costs on statements from the date of default.
Old unpaid debt may also have prescribed. See the prescription date calculator and how to complain to the NCR.
Frequently asked questions
What is the in duplum rule?
Section 103(5) of the National Credit Act says that the interest, fees, credit insurance, default administration charges and collection costs that build up while you are in default may not, together, be more than the unpaid balance of the principal debt when the default happened.
Does the in duplum rule mean I owe at most double?
In effect, the charges that accrue during default are limited to the principal balance at default, so the total of that balance and those charges cannot be more than twice the balance. Charges from before the default, and payments, are treated separately.
Which charges count?
All the amounts in section 101(1)(b) to (g): initiation fee, service fees, interest, credit insurance, default administration charges, collection costs.
What if the charges are over the limit?
Ask the credit provider or collector for a statement showing the balance at default and every charge since, and raise it in writing. If it is not resolved, you can lodge a complaint with the National Credit Regulator.