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It is essential that the meanings of important terms used in the practice of consumer law are clearly understood.
Most of the definitions below are obtained from the National Credit Act 34 of 2005 (“the Act”). “Credit” means a deferral or delay of payment of a sum of money to another person, or a promise to pay money.
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The credit provider is often also referred to as “the creditor,” in particular when steps are taken to recover amounts due from the consumer.
A consumer is the party to whom goods or services are sold, or to whom money is loaned in any of the examples referred to above.