The form of the document that records the credit agreement is prescribed by the regulation and varies for credit agreements of different sizes. The information required for a small credit agreement (principal debt less than R15,000) is indicated in Form 20.2 of the Regulation. It is not really a form, but rather a framework for the minimum content of the agreement. Among these details is the fact that over-indebtedness is often a disastrous consequence of the high cost of credit. Levenstein sums it up: the drastic reduction in interest rates has the effect of concealing or concealing the true total cost of credit, if we add the costs of initiation and service. It is possible that these fees are largely hidden, with an emphasis on interest rates (better known to consumers) when products are marketed. Fees help keep interest rates lower, making credit cheaper, although credit may not be cheaper. The distortion of credit costs relative to interest and fees (unknown to consumers) increases the likelihood that consumers will be misled by the true cost of credit. Many will be incentivized to borrow money that will cost much more than they originally anticipated. It is important that Paralegals understands the risk of concealing the real costs of credit, so that they can warn their customers of this risk. The opening fee is intended to cover the costs of establishing a credit agreement, but the exact costs of the fee are unclear. This is a one-time payment made by the consumer at the time of conclusion of the credit agreement or payable in instalments (in the form of a separate loan without interest). If a case has been referred to the National Consumer Court, the debtor adviser, the Ombudsman, the alternative dispute resolution body or the consumer court, or if the credit agreement is subject to a debt review, the court adjourns the case.

The crucial role of credit in the economy is explained in the framework of the Ministry of Trade and Industry of August 2004: a student loan could, for example, be granted to an unemployed consumer who might not have a credit record (so that the credit provider does not know his payment history). The consumer may not be solvent and there is no security. The nature of these agreements precludes them from granting ruthless loans. Under the law, a number of other agreements are not considered credit agreements, of which “development credit agreements” are credit agreements concluded for the development of a small business, an education loan or a loan for the construction of cheap housing. . . .