Why you need to understand ‘statutory in duplum’

Statutory in duplum, which section 103(5) of the National Credit Act is commonly known as, protects you from exploitation by creditors by limiting the costs that you may be charged when you are in default. This is to prevent you from being charged exorbitant fees relative to your actual debt.

It states that once the sum of the charges, including interest, listed in the act equal the principal debt outstanding when you defaulted, no further charges may lawfully be levied against your account until you have purged the default.