Credit Agreements and the National Credit Act

---

Liability for the payment of interest is a stock feature of credit agreements, i.e. typically agreements in terms of which the consumer obtains the use of particular goods or services but payment for which is spread out over a period of time in the future, usually in the form of monthly instalments. Interest is sometimes regarded as the lifeblood of commerce (by enabling more consumers to buy more goods this has a positive impact on the economy). The time-value of money clearly justifies some role for an interest mechanism in commerce. In the context of consumer agreements an unrestrained role for interest can work great injustice. A contrary perspective in regard to interest is that it is harmful for consumers and should be disallowed altogether.