Landmark judgement over unsecured lending?
LAC was seeking to have certain sections of the Magistrate Court’s Act (MAC), relating to Emolument Attachment Orders (EAOs), declared as unconstitutional.
The decision of which will be heard in the High Court tomorrow (Wednesday, 8 July).
The LAC also reportedly wants some EAOs already in force made null and void, as well as to create more clarity around the law.
“The confusion in law; every court and every magistrate in the court applies the law and interprets the law differently, that creates confusion, and [so the] credit industry –when they do approach a court for relief – what the requirements are.
Because everyone interpreters in differently. And that is why we approached the court, to get clarity,” said Marius Jonker, CEO of the Association of Debt Recovery Agents (ARDA).
Jonker said that the main purpose of the case is to have legal clarity.
“But the legal uncertainly is the reason why credit providers make use of a consent to jurisdiction as they prefer to go through the courts where they know what the requirements are,” he said.
Credit providers obtain the debt owed to them by attaching an EAO to a customer’s salary, having that portion of the money automatically taken from them each month.
Not enough man power
Another one of LAC’s arguments is that clerks of court should not be allowed to process EAOs, as their role doesn’t require them to do this.
However, Jonker doesn’t agree, stating that there just aren’t enough magistrates to accept every EAO case.
“We believe that legally a clerk of the court as the department of justice also believes, and as the current amendments state that the clerk of the court with special training should be allowed to grant such a judgment and EAO orders. It is just not practical if they insist on a magistrate granting such a judgment, the whole judicial system would come to a standstill, because they just do not have the capacity; it would be impossible,” said Jonker.
Judgement is set to be passed tomorrow morning, and some commentators claim that it could drastically change the way debt is collected in South Africa.
Featured Financial conflict can lead to divorce – here’s how to prevent it
Talking about money is an intimate matter, and it may be uncomfortable for couples who’ve managed to avoid this discussion. However, it will become necessary at some point or other. Do you think you’re ready to talk to your partner about money?
This is how much you should spend on accommodation
As your salary changes over time, your expenses will change too. But what if you’re spending an exceedingly large percentage of your income on accommodation? Is it feasible or even recommended in our current stressful financial climate?
How to be “future greedy” with passive income
Setting up numerous streams of income is a safe way to protect yourself from the loss of your main stream of income. Better yet, setting up passive streams of income will ensure you always have money coming in, without costing you additional working hours. So, what is “passive income”, and how can you earn this?
Can your debt be cancelled?
It sometimes happens that you struggle so much to pay your debt that you think of asking your creditor to write it off. But debt doesn’t just get written off. There are conditions that must be met and procedures that must be followed before the creditor cancels your debt.
FNB senior customers can earn up to 30% back in eBucks at Clicks
Price: Available on request
When: From 5 August 2020
Bakwena Spa Women’s Day Special
Price: R549 per person
When: Until 31 August 2020
Where: Centurion, Hartbeespoort, Kuils River
Dis-Chem Pap Test Special
When: From 3 August to 11 September 2020