Section 17: Prohibition of charge for expenses on loan
consolidated text (as at 2007). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
17. Prohibition of charge for expenses on loan
(1) Where a borrower or prospective borrower agrees with a moneylender
to pay to him any sum on account of costs, charges or expenses incidental
to or relating to the negotiations for or the granting of the loan or proposed
loan, the agreement shall be illegal.
(2) Where any sum is paid under the agreement to the moneylender for
or on account of any costs, charges or expenses mentioned in subsection (1), that sum shall be—
(a) recoverable as a debt due to the borrower or prospective borrower; or
(b) where not recoverable in the event of the loan being completed,
be set off against the amount actually lent and the amount shall
be deemed to be reduced accordingly.
(3) This section shall not apply to the costs, charges and expenses specified in section 13 (3).