Default fees and collection costs
When a payment fails, additional charges follow — and they are regulated too. A credit provider may recover certain default administration charges and collection costs, but those are capped and must be genuinely incurred. Unexplained charges appearing on a statement are worth challenging.
What you need to know
A default administration charge may be levied where a payment is missed, and collection costs may be recovered where the lender takes steps to collect. Both are limited by the National Credit Act and the regulations made under it, and neither may be used to inflate the debt.
Interest continues to accrue on the outstanding balance while you are in arrears, which is usually the larger cost. On short-term credit this compounds quickly, which is why arrears on a small loan can grow surprisingly fast.
Ask for a full statement showing every charge and what it was for. If the answer is unsatisfactory, the Credit Ombud handles disputes with non-bank credit providers at no cost to you, and the National Credit Regulator handles complaints about unlawful charging.
If something goes wrong
- Complain to the lender firstPut it in writing and keep the reference number. Most credit providers must give you a decision within a set number of business days under their own complaints policy.
- Escalate to the Credit OmbudIf the lender does not resolve it, the Credit Ombud handles disputes with non-bank credit providers at no cost to you.
- Report it to the National Credit RegulatorThe NCR is the regulator. Report reckless lending, an unregistered provider, or a lender that will not give you a pre-agreement quote.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
- National Credit Regulator — register of credit providers — Regulator, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.