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NATIONAL CREDIT ACT (NCA):

18 Jul

Enforcement of credit agreements

 As most of you might have been aware of, in terms of section 86 of the National Credit Act (NCA)  a credit provider was prohibited from pursuing legal action against the debtor/consumer who has applied for debt review. As a result, a credit provider therefore had to wait for the outcome of the debt review, before pursuing legal action. However, the Supreme Court of Appeal (SCA) in the Collett v Firstrand Bank case changed this.

 The SCA in this case  held that a credit provider is now entitled to terminate a debt review applied for by a debtor/consumer , at any time, even after the matter has (already) been referred to the Magistrate Court, if the debtor/consumer is in default under the credit agreement.

 

 

 
1 Comment

Posted by on 18/07/2011 in Content

 

One response to “NATIONAL CREDIT ACT (NCA):

  1. Meyer de Waal

    23/07/2011 at 11:15 am

    Very few debt collectors follow the intent of section 129 (1) of the NCA – that is to develop and agree on a plan of repayment. It is most often a case of issuing a letter of demand, not available to negotiate a plan of repayment, and sell the assets on an auction. The debt collector is not interested to develop and agree of a plan of repayment, as he is ensured payment of his fees if the property is sold, and other fees generated – like the transfer fees from the conveyancing, from such sale. One a property is sold for 40 % less than the actual (or pervious) market price, the value of all the surrounding properties deflate. No wonder is appears that there is a negative or slow growth in property values – this in times when we have a shortage of housing!

     

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