ARTICLES
What to know before you settle an account that is on your credit report
Where you do not dispute any information on your credit record and you want to repair your credit record by remedying any negative listing on it, the first step is to consider whether you are legally obliged to pay the account….
The right to be issued with a clearance certificate and the cancellation of the debt review process
(as extracted from Nicky Campbell’s Chapter 6, “The consumer’s rights and credit provider’s obligations”, in The Guide to the National Credit Act by JW Scholtz, Jannie Otto, E Van Zyl, Corlia Van Heerden, and Nicky Campbell)
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What to look out for when shopping for credit
The noun “credit” is strictly defined in the National Credit Act 34 of 2005 as “a deferral of payment of money owed to a person, or a promise to defer such a payment” or “a promise to advance or pay money to or at the direction of another person”. A credit provider is required to ….
The effect of Rougier v Nedbank on the cancellation of debt review
The National Credit Act 34 of 2005 essentially gives a consumer the right to apply to a debt counsellor for debt review if he is of the opinion that he is over-indebted. This right is entrenched in section 86(1) and …
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 …
Sequestration Basics: How Does Bankruptcy Work
Individuals facing insurmountable debt have legal options to relieve their financial burden, with sequestration and bankruptcy among the most notable. Understanding these processes is essential for anyone considering …
Dereliction and Relegation of Debt Counsellor’s Duties may prove costly for Debt Counsellors
In December 2016, three people were ordered to pay R180 000.00 in fines for failing to comply with debt counselling regulations. The fines were imposed by the National Consumer Tribunal (the “NCT”) after it was discovered that the guilty parties had been operating a debt counselling business, but …
Property Auctioned for Debt? You have rights to fair treatment!
Joe was diagnosed with heart disease and had to reduce his working hours, with the resultant effect that his monthly income decreased. As a result, Joe tried to negotiate with his bank to try and save the house he had bought just a few years ago, the said house having been purchased in terms of a credit agreement …
Data-retention periods for credit bureau information
The National Credit Act prescribes the maximum periods for which consumer credit information may be recorded on the consumer’s credit record. Regulation 17(1) of the National Credit Act sets the maximum periods for the retention of credit bureau information as follows …
Sequestration, Administration and Debt Review Compared
Over-indebted South Africans have several statutory debt relief measures available. These include Sequestration or Voluntary Surrender; Administration under Section 74 of the Magistrates Court Act, and Debt Review as prescribed by the National Credit Act. But how do they compare? …
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 …
Debt and the defence of prescription clarified
The collection of prescribed debt is 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 …
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 qualifications. …