Firms must inform creditors by post

By Staff Writer

Consumers will have the right to challenge debt judgements made against them by organisations if there is no proof that they had been informed of a default, the Constitutional Court ruled yesterday.  Before the ruling, it was enough that firms to show that they had sent default notices to chosen addresses before starting recovery proceedings under the National Credit Act.


The Banking Association of South Africa welcomed the decision. “We are pleased with the judgement. It is a win-win. Under the ruling, companies will have to prove the despatch of the registered letter and prove that it went to the right post office,” said Nicky Lala Mohan general manager: legislation and regulatory oversight of the Banking Association of South Africa. Mohan added that he was pleased the court did not go to the extreme of ordering personal service of notice to debtors.


But the ruling doesn’t leave consumers off the hook. “If for some reason a consumer says they did not receive a notice the court will conduct an investigation into the matter. It [the Court] will adjourn the matter but not dismiss the case and will direct the course of action,” explained Mohan.


Luke Hirst, managing director at debt management service provider DebtBusters, added: “The ruling makes sense and evens up what the credit provider and consumer need to do. But consumers still need to pay serious attention to such notices because if they don’t there could be additional expenses or the possibility of them losing secure assets such as their home or car and getting a negative credit score.”
 

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)