NEW PRESCRIBED RATE OF INTEREST The Prescribed Rate of Interest Act 55 of 1975 prescribes the maximum rate of interest that may be claimed by a creditor in respect of interest bearing debts where the rate of interest is not governed by another law, agreement or trade custom.
In other words the amount of interest you can add to your claim once your attorney has demanded performance by a debtor and placed him in mora. For the past 20 years the prescribed interest rate as set by the Minister of Justice and Constitutional Development was 15.5% per annum. However this has now changed. As from 1 August 2014, all debts claimed, in which the debtor has been placed in mora, the new prescribed rate of 9% per annum will be applicable. All debts in which interest was already accruing before 31 July 2014 the previous prescribed rate shall remain applicable and be levied at 15.5%.
NEW PRESCRIBED RATE OF INTEREST
