1. Overview

This function generates an official Statement of Settlement, which details the exact amount a client needs to pay to settle their credit agreement in full as of a specific date. This is a legally significant document governed by the National Credit Act.

• Navigation: Client Administration > Search for Existing Client > Select the client > Loans > Select the loan > Statement for Settlement

2. Legal Requirements (South African National Credit Act, No. 34 of 2005)

Generating a Statement of Settlement is subject to specific legal obligations under Section 113 of the Act. As a credit provider, you must be aware of the following:

• Consumer's Right: A client or their guarantor has the right to request a settlement statement at any time, and it must be provided free of charge.
• Delivery Timeframe: The statement must be delivered to the client within five business days of their request.
• Delivery Methods: The statement can be delivered orally (in person/by phone) or in writing (in person, SMS, mail, fax, or email), as directed by the client.
• Binding Period: The settlement amount quoted in the statement is legally binding for five business days from the date of delivery.
• Credit Facility Exception: For open credit facilities (like a revolving loan), the statement is not binding against any new charges or credits made to the account after the statement was prepared.

3. How to Generate the Statement

After navigating to the function, you will need to specify the parameters for the statement.

Filters and Selections

Available Actions

4. Additional Notes

• Company Logo: When printing the Statement of Settlement in HTML format, your organization's logo can be configured to appear on the report.
• Viewing on Receipt: The calculated settlement amount is also made available in the Receipt function, ensuring accuracy when you process the client's final settlement payment.