Cooling off-period under the National Credit Act

The 5-day cooling-off period (entitling a consumer to rescind a credit agreement) is dealt with in Section 121 of the National Credit Act

This section applies only in respect of a lease or an installment agreement entered into at any location other than the registered business premises of the credit provider.

In these circumstances a consumer may terminate a credit agreement within five business days after the date on which the agreement was signed by the consumer, by-
(a) delivering a notice in the prescribed manner to the credit provider; and
(b) tendering the return of any money or goods, or paying in full for any services, received by the consumer in respect of the agreement.
When a credit agreement is terminated in terms of this section, the credit provider:
(a) must refund any money the consumer has paid under the agreement within seven business days after the delivery of  the notice to terminate; and
(b)  may require payment from the consumer for-
(i) the reasonable cost of having any goods returned to the credit provider and restored to saleable condition; and
(ii) a reasonable rent for the use of those goods for the time that the goods were in the consumer’s possession, unless those goods are in their original packaging and it is apparent that they have remained unused.