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In Duplum Rule

In Duplum Rule
A SA legal rule that stops interest from spiralling out of control. Once the interest charges equal the original amount you borrowed, no more interest can accrue — ever. So a R10,000 debt can't become R25,000 in unpaid interest. It protects people from debt traps.

Usage Examples

"Bongani borrowed R15,000 from a mashonisha in Soweto at 8% monthly interest. The legal maximum would cap interest at R15,000, meaning total owed could never exceed R30,000. Without the in duplum rule, unpaid compound interest could've hit R100,000 in years."

"Lerato ignored a short-term loan from Wonga that charged 5% monthly. After 20 months unpaid, interest alone equalled the original R5,000 borrowed. The in duplum rule kicked in — Wonga couldn't charge any more interest, even though she hadn't settled."

"Thandi defaulted on a retail store card. Interest should've kept compounding, but South African law (through the in duplum rule) capped it. The original R8,000 debt plus R8,000 in interest equalled the max — any further interest was illegal."

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