<P> Consumers are entitled to settle their debts in advance at any time, with or without advance notice, after requesting a statement from the credit provider of the amount required to settle the account . No settlement charge is payable for small agreements; interest and other fees are payable only until date of settlement . This means that a consumer may request from the credit provider the balance due, pay the entire amount, and not be penalised for doing so . </P> <P> This, however, does not apply to large agreements such as mortgage bonds . If a consumer wishes to settle a bond he must first give notice of cancellation for a period of three months to the credit provider . When a mortgage bond is cancelled, the consumer will be liable for bond cancellation costs . </P> <P> Consumers may prepay any amount due under a credit agreement (e.g. instalments due) and credit providers are obliged to accept such amounts, even if they are not due . Such payments are used for unpaid interest and fees first, and then to reduce the principal debt . </P> <P> A consumer may, at any time, return to a credit provider goods that are subject to a credit agreement, whether or not the consumer is in default . The credit provider must then sell the goods and use the proceeds to settle the account . In terms of the former Credit Agreements Act, this procedure applied only when the consumer was in default . This new provision gives the consumer an extraordinary right, enabling him to rid himself of the agreement when he chooses to . </P>

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