[7 Mar 2016 | No Comment | ]
Prescribed Rate of Interest Act Changes Explained

The Prescribed Rate of Interest Act (Act 55 of 1975) sets the maximum rate of interest that can be charged on mora interest (over-due payment) and is also used in court orders relating to damages claims.
Mora interest applies where payment is due and the rate of interest has not been agreed between the parties. In order for a creditor to become entitled to such interest there has to be demand made for payment or a due date for payment. The creditor is then entitled to charge mora interest from such …

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Credit Law, Headline, Legal News »

[7 Mar 2016 | No Comment | ]
Prescribed Rate of Interest Act Changes Explained

The Prescribed Rate of Interest Act (Act 55 of 1975) sets the maximum rate of interest that can be charged on mora interest (over-due payment) and is also used in court orders relating to damages claims.
Mora interest applies where payment is due and the rate of interest has not been agreed between the parties. In order for a creditor to become entitled to such interest there has to be demand made for payment or a due date for payment. The creditor is then entitled to charge mora interest from such …

Debt Collections, Featured »

[2 Mar 2016 | No Comment | ]
Big Week for Legal Debt Collections – Stellenbosch case and Mag Court Amendment

The University of Stellenbosch Legal Aid Clinic & Others v Minister of Justice & Others case will be heard in the Constitutional Court tomorrow, the 3 March 2016.
Moreover the Dept of Justice & Constitutional Development Deputy Min. Jeffery has indicated that the Magistrates Court Amendment Bill dealing with numerous aspects of the debt collection process will be tabled before the National Assembly this week.This is probably more important in the long term than the case, which will get more publicity.
We will look at both in detail in due course.

Debt Collections, Featured, Legal News »

[15 Feb 2016 | No Comment | ]
Submission on Debt Collectors Amendment Bill

 

In October of last year the Department of Justice and Constitutional Development published a draft Debt Collectors Amendment Bill. The main amendment to the Debt Collectors Act was the proposed inclusion of attorneys into the ambit of the Act.
As I had not seen any research or motivation in this regard I wrote to the Deputy Minister of Justice and Constitutional Development, Mr J Jeffery to ask what the motivation was and he was kind enough to take the time out of his busy schedule to reply (a copy of the letter …

Credit Law, Credit News, Featured, Headline, National Credit Act »

[2 Feb 2015 | No Comment | ]
Proposed Guidelines for “Statutory in Duplum” Interest & Charges Cap

With consumer debtor’s under pressure the government seems to focusing on the interest that they are being charged. The Department of Trade and Industry has published a PROPOSED GUIDELINES FOR THE INTERPRETATION AND APPLICATION OF SECTION 103(5) OF THE NATIONAL CREDIT ACT 34 OF 2005 (GOVERNMENT GAZETTE No. 38419 , 30 JANUARY 2015). This as a result of “uncertainty in the credit industry regarding the implementation of Section 103(5) of the National Credit Act. The National Credit Regulator therefore publishes these proposed guidelines for information and comment by the public …

Credit News, Featured, Legal News »

[29 Jan 2015 | No Comment | ]
The Prescribed Rate of Interest to be linked to the Repo Rate

In July last year we wrote on the first change to the interest rate in terms of the Prescribed Rate of Interest Act in over 20 years.
Yesterday the Department of Justice and Constitutional Development announced an Judicial Matters Amendment Bill, which included a fixed method of calculating and making the Prescribed Rate of Interest more market related.
The relevant part of the Departments news Statement read:
“At present the Prescribed Rate of Interest Act, 1975, provides that if a debt bears interest and the rate at which the interest is to be calculated …