In terms of secured loans, the money is paid and the lender receives a pledge of movable property or something else of value as collateral for the repayment of the loan. During this process, a consumer cannot use his credit institution (for example. B his credit card). Nor can he enter into another loan agreement. A creditor who concludes a credit agreement with a consumer while the consumer is subject to debt control runs the risk that the credit agreement will be declared as reckless credit. Borrowers benefit from loan agreements because these documents provide them with a clear record of the details of the loan, such as the interest rate, so they: A credit provider must advise a debtor before reporting adverse information to a credit bureau. Any person may challenge the accuracy of information reported to a credit bureau or held by a credit reporting agency. The credit bureau or NCR is then required to conduct investigations free of charge and correct any incorrect information. The form of the document registering the credit agreement is prescribed by the regulations and varies for credit agreements of different sizes.

The information required for a small credit agreement (a principal debt of less than R15,000) is set out in Form 20.2 of the Regulations. It is not really a form, but rather a framework for the minimum content of the agreement. These details include institutional credit agreements, which typically involve a senior underwriter. The subscriber negotiates all the terms of the lending activity. The terms of the transaction include the interest rate, payment terms, loan term, and any late payment penalties. Subscribers also facilitate the inclusion of multiple parties in the loan, as well as any structured tranche, which may individually have their own terms. The common practice is for a lender to apply to the court for an "interim garnishment order" until the contract is terminated to protect vulnerable assets (such as a motor vehicle) from deterioration or damage. This order allows the sheriff to seize the goods to keep them in a safe place until the legal proceedings are completed, which can be time-consuming. It is not clear in the law whether lenders will still be able to obtain interim garnishment orders.

The previous practice of obtaining such orders can certainly be continued. It has been argued that consumers are often responsible for over-indebtedness by recklessly borrowing too much money or buying too much on credit. This is usually the result of economic despair and a lack of understanding of the difficulties of repaying or servicing their debts. However, lenders are often responsible for recklessly lending too much credit to consumers who cannot afford to repay their debt. One of the most important objectives of the law is to combat over-indebtedness and reckless lending. Sections 78 to 88 of the Act contain detailed, far-reaching and extremely important provisions in this regard. The debt assessment procedure may well be used by smart consumers to delay or avoid payments under a credit agreement. That is because there are many provisions in the act that limit the rights of lenders to enforce the debt that is under review. However, if the consumer is late in a credit agreement that is under review, the lender may ask the consumer, the debt advisor and the NCR to terminate the review. This notification may be made at least sixty days after the date of the request for debt review, i.e.

if the debt review process takes too long. The lender can then take steps to enforce the agreement. The court then has the discretion to order the resumption of the debt review if necessary. A request for a consumer to examine the debt has a serious impact on the consumer in terms of solvency and the conclusion of future contracts. Secured bank loans, credit card accounts or chequing accounts fall under the category of "credit facilities". The maximum interest rate is also linked to the redemption rate of SARB Bank and is currently 29.8% per year. A consumer may at any time return goods subject to a credit agreement to a creditor, whether or not the consumer is in default. The lender must then sell the goods and use the proceeds to pay the bill. .