NATIONAL CREDIT ACT (NCA):

MUNICIPAL CLEARANCE CERTIFICATES
July 11, 2011
A GREAT MAN
July 18, 2011

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.

 

 

SRA
SRA
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