The National Credit Act also provides extra protection for consumers who have purchased goods on credit, and default on paying their instalments or who want to cancel the agreement.
For consumers with credit agreements signed from 1 June 2007, consumers can now return the goods to the credit provider within 5 days after they have given written notice that they are cancelling the agreement. The credit provider must then give the consumer a written estimate of the value of the goods. They can then either keep the goods and continue with the contract or allow the creditor to sell the goods for the best possible price. Once the goods are sold the credit provider must give the consumer written notice with details of the sale and any amount that they may owe if there is a shortfall. This shortfall must be paid or the creditor can obtain a judgment against the consumer for the balance outstanding.
If the consumer is unhappy about the sale, they should approach the creditor or get the help of a mediator or approach the Provincial Consumer Court.