There are six different types of fees that moneylenders are allowed to charge their clients, which is applicable beginning June 1, 2012 (according to IPTO). These fees including the following:
- For late payment of interest or principal amount loaned
- For any changes in the loan contract terms made upon request
- For dishonoured cheques you have issued
- For failed GIRO deduction from the borrower’s bank account, which is made as payment to lenders
- For early termination of the loan contract or premature redemption of the loan
- For any legal fees incurred upon recovering the loan
Fees other than the ones stated are not permitted, which means these should not be enforced by the lender.
