The drafting of an Acknowledgement of Debt (AOD) in the new world that creditors have to face under the National Credit Act (NCA), has to be carefully done or there is a possibility that the AOD will constitute a credit facility, even though the original debt was an incidental credit agreement.
As has been previously discussed the onus and obligations of a credit provider on credit agreements, other then incidental credit agreements is very heavy. A poorly drafted AOD could novate what was originally an incidental credit agreement and make the …

With Business Report talking about Consumer confidence still cooking and National Credit Regulator (NCR) chairwoman Pansy Tlakula quoted in the Business Day as saying they need to “beef up” the number of debt counsellors to cope with debt needs of the country, one wonders if the final meal the consumers are going to get is get is going to be as tasty and healthy as they hope for.
The Business Report article refers to “consumer confidence levels in South Africa dropped marginally in the second quarter of 2007, remaining …

One day, a man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell to you for $25,000.”
“Sir,” JP Morgan replied, “I do not know what is in the envelope. However, if you show me and I like it, I give you my word as a gentleman that I will pay you what you ask.”
The man agreed to the terms and handed over the envelope. JP Morgan opened it, and extracted a single sheet of …

One of the biggest question marks hanging over the National Credit Act, and there are some big questions dangling out there, is the question of whether there are sufficient suitably qualified and registered debt counsellors to deal with the needs of the NCA.
The debt counsellors are an integral element in the debt relief and restructuring procedures of the NCA. The task of NCA debt counsellor is even greater then that of the debt administrator in terms of Section 74 of the Magistrates Court Act, in that their functions cover amongst …

Business Day reports:
WHILE stopping short of an outright view, economic and market analysts ETM say there is some evidence banks have taken quite a big hit from the National Credit Act (NCA), and this may have repercussions on upcoming credit extension data and hence interest rates.
“We have spoken to one or two key people and it seems to hint at the fact that credit extension and various other services may come off sharply. We may well see a sharp drop in M3 and PSCE,” economic analyst from ETM, Russell Lamberti, …

By Roy Cokayne on IOL for Business Report.
Pretoria – The National Credit Act (NCA) is doing what finance minister Trevor Manuel and Reserve Bank governor Tito Mboweni have failed to achieve since last year: controlling the amount of debt consumers take on.
Motor industry analysts, motor manufacturers and retailers, and finance providers yesterday all attributed the massive slump in new car and light commercial vehicles sales last month to the impact of the NCA.
Tony Twine, a motor industry analyst and director of Econometrix, said the NCA was more effective in controlling …