Consumer Rights under the National Credit Act explained

IntroductionThe right to apply for creditProtection against discriminationThe right to reasons for refusal of creditThe right to information in an official languageThe right to information in plain and understandable languageThe right to receive documentsThe right to...

Early settlement of debt and how to get there

The National Credit Act regulates how accounts can be settled early. To begin with, a consumer would need a settlement amount from the credit provider and the NCA gives the consumer certain rights with regard to this. Section 113 of the National Credit Act: Statement...

The In Duplum Rule – How much do you owe?

In Duplum – How much do you owe? Section 103(5) of the National Credit Act limits the amount that a creditor may recover for a credit agreement, by limiting the collection costs that may be charged if a consumer was to default on a credit agreement. The maximum...

The right to receive a statement of account

Section 108 of The National Credit Act enforces: The right to know how much you owe and how it has been calculated. In respect of a mortgage bond, the credit provider must deliver a periodic statement at least every six months to the consumer. In the case of an...

Sequestration, Administration and Debt Review Compared

Sequestration some salient points: High Court procedure – more costly Court grants only IF it is in the interests of your creditors – no guarantees: Your assets must cover the debts Associated costs of sequestration are paid out of your estate, i.e. bad for creditors....

Beware! Upfront fees for credit repair are unlawful

Credit repair in South Africa has become a formidable industry. Only ten years ago, one needed an attorney to improve one’s credit record. Today there are dozens of so-called credit repair agencies and most do not employ attorneys, and many do not have any legal...

Can a Garnishee Order or Emoluments Attachment Order be Set Aside?

An emoluments attachment order, or “garnishee” may be amended or rescinded provided the person bringing the application shows a valid reason for doing so. However, this is limited to the existence or validity of the order or the correctness of the balance being...

Debt and the defence of prescription clarified

The collection of prescribed debt has been is now prohibited. No person may sell a debt under a credit agreement that has been extinguished by prescription under the Prescription Act 68 of 1969. Further, no person may continue the collection of, or re-activate a debt...

Trapped in administration? Cancel it or write it off!

An administration order is granted in terms of the Magistrates’ Court Act 32 of 1944 where the consumers debt is less than R50 000.00. An administrator is then appointed to collect a monthly amount that is distributed amongst the consumers’ creditors as detailed in...