Tag Archivesnational credit act
acknowledgement of debt

Are Acknowledgement of Debt’s subject to the provisions of the National Credit Act 34 of 2005?

Consider the following practical example: You loaned R 20 000.00 from a friend/colleague. You could not repay the loan as you initially promised due to financial difficulties. Your friend/colleague draws up an Acknowledgment of Debt (hereafter referred to as ‘AOD’) whereby the new repayment terms are clearly specified. Furthermore, he or she requests that your […]

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Prescribed Debt

Reviving Prescribed Debts

In terms of the Prescription Act 68 of 1969 most debts prescribe within three years. It seems obvious that once a matter has prescribed, that is where it ends. The problem starts where the Debtor has no idea the debt has prescribed and continues to make payment or signs an Acknowledgment of Debt and thus […]

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Reckless Credit: Obligations of the Credit Provider and Consumer

The National Credit Act No. 34 of 2005, as amended from time to time, (hereinafter called “the Act”) first introduced the concept of reckless credit or lending in South Africa. The Act aims to promote responsible credit granting and use, and for that purpose prohibits reckless credit granting by credit providers. Upon reading the preamble […]

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The National Credit Act and your Debt Review: How does it really work?

The subject of credit and over-indebtedness remains an important and deeply concerning topic in the current economic climate in South Africa. Over the years we have seen consumers incurring debt, not only to live exorbitant lifestyles above their means, but to actually for day to day financial survival. On the flip side of the coin – credit […]

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credit

Threshold for registering as credit provider possibly reduced

In terms of Section 42(1) of the National Credit Act 34 of 2005 (the Act), the Minister of Trade and Industry can determine and publish the principal debt threshold for registration as a credit provider. The previous threshold was a principal debt of R 500 000.00. This means any credit provider with a principal debt of […]

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