Consumers can pay in advance any amount owed under a credit contract (for example. B payments due) and credit providers are required to accept these amounts, even if they are not due. These payments are first used for unpaid interest and fees, and then for the reduction of the main debt. As part of a credit guarantee, a third party agrees to pay a creditor, on request, the amount owed by a consumer (for example. B in the case of a guarantee that provides a personal guarantee on another person`s debts from an excess cheque account). In accordance with Section 89 (2) of the NCA, a credit contract is illegal in the following circumstances: the debt verification procedure could be used by savvy consumers to delay or avoid payments under a credit contract. This is because there are many legislation that limits the rights of credit providers to enforce their claims. However, if the consumer is under an audited credit contract, the credit provider can provide the consumer, the debt advisor and the NCR with the end of the audit. This notification can be made at least 60 days after the date of the debt review request, i.e. if the debt review process takes too long. The credit provider can then take steps to enforce the agreement. The court then has the power to order the resumption of the debt review, if any.

A consumer`s request for a debt review has serious implications for their creditworthiness and for future agreements. Different types of credit contracts are subject to different interest rates: an illegal provision is not valid. Whenever a court has before it a case involving a credit contract containing an illegal provision, the court can present the National Credit Act as a complex and time-consuming legislation that attempts to precisely regulate every sector of the consumer credit market. The final provisions of the Act will come into force on June 1, 2007. The Act repealed the Usury Act[2] and the Credit Agreements Act[3] and bears little resemblance to these statutes.