I went to apply for a personal loan at Capitec Bank. The loan amount was approved but when i asked what the interest rate is they said they couldn't tell me or even work it out until the loan application was completed, and i have signed. I insisted that they tell me the interest rate and the consultant and the Branch manager said that they had no idea how to work it out and they will only be able to tell me after i have signed. I worked out the interest rate myself and it came to 39%, which is ridiculously high. This is known as Usury and not informing me of the interest rate is against the credit act. In terms of the act the potential debtor must be apprised of the full amount of indebtedness, ie full disclosure prior to conclusion of the agreement.
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