A summary of consumer rights under the National Credit Act (NCA)
A summary of consumer rights under the National Credit Act (NCA) as extracted from the “DIY Credit Repair Toolkit”: Right Description / Key Provision NCA Section / Regulation 1. Right to Apply for Credit Every adult natural person, juristic person, or association has the right to apply for credit. Section 60 2. Right to Reasons […]
How Should I deal with Debt Collectors
As of 11 August 2003, all debt collectors, whether they are employed by a company or operate individually, have to register with the Debt Collectors Council. Therefore, if you doubt the credibility of a debt collector, you may confirm whether that debt collector is registered with the Debt Collectors Council. Council for Debt Collectors […]
What to know when settling 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. Accounts that you are not legally obliged to pay You are not legally obliged […]
What to look out for when shopping for credit
Understanding Credit Under the National Credit Act 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 […]
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 of settlement amount. (1) At the request of a consumer […]
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 them to solve financial distress. This article provides a basic overview of sequestration and bankruptcy, highlighting their key aspects and how they work. What is Sequestration? Sequestration […]
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 had done so in contravention of compliance […]
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 under a credit agreement where the debt has been extinguished by prescription or […]