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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 …

Credit Law, Credit Management, Credit News, Credit Seminars, Featured »

[6 Oct 2014 | No Comment | ]
Commercial Credit Management Seminar – Durban 16th October 2014

COVERING:
With the continuing effects of the economic downturn being felt by businesses, the importance of good credit management has been   magnified and all companies credit management policies need to be reviewed and upgraded in order to avoid your company becoming a statistic of the poor economy. In addition credit management is also being impacted by the new legislation such as the National Credit Act, the Consumer Protection Act and the new Companies Act.
This is a full day seminar in Durban on the  16th  October 2014 aimed at commercial creditors (businesses who supply …

Credit Law, Credit Management, Credit News, Credit Seminars, Featured »

[6 Aug 2014 | No Comment | ]
Commercial Credit Management Seminar – Cape Town 10th October 2014

COVERING: With the continuing effects of the economic downturn being felt by businesses, the importance of good credit management has been   magnified and all companies credit management policies need to be reviewed and upgraded in order to avoid your company becoming a statistic of the poor economy. In addition credit management is also being impacted by the new legislation such as the National Credit Act, the Consumer Protection Act and the new Companies Act. This is a full day seminar in Cape Town on the  10th  October 2014 aimed at commercial …

Credit Law, Credit Management, Credit News, Featured »

[30 Jul 2014 | No Comment | ]
Prescribed Rate of Interest to change and it’s not a variable rate

 
We previously pointed out that the Prescribed Rate of Interest was set to change after having remained unchanged at 15.5% per annum from 1 October 1993.
 
It has now been confirmed that the prescribed rate of interest will be reduced to 9% on the 1st August 2014 in terms of GOVT NOTICE NO R.554 of the 18 July 2014.
 
Furthermore, and as explained previously, the Prescribed Rate of Interest Act (55 of 1975) sets the maximum rate of interest that can be charged on mora interest (over-due payment) and which is also used in …

Credit Law, Credit Management, Debt Collections, Featured, National Credit Act »

[21 May 2014 | No Comment | ]
National Credit Amendment Act of 2014 Signed into Law

 
The National Credit Amendment Act of 2014 was signed into law by the President on the 20th May 2014.
The Amended Act deals with a number of issues in terms of the National Credit Act, the most significant of which include:
• The creation of industry codes of conduct
• Removal of the minimum thresholds for registration as a credit provider in terms of the NCA
• The removal of the NCR’s board and requires the regulator to account directly to the minister of trade and industry
• The formalisation of the payment distribution agents …

Credit News, Debt Collections, Featured »

[14 May 2014 | No Comment | ]
Monetary Jurisdiction of Courts to Change

The jurisdiction of which court hears any particular matter is largely (but not soley) determined by the monetary value of the claim.
With effect from 1 June 2014, the monetary jurisdiction in Magistrates Courts is changing:
District Magistrates Court – up to R 200 000
Regional Magistrates Court – up to R400 000
The High Court will therefore will hear matters where the monetary value exceeds R 400 000.00.
 

Credit Law, Credit News, Featured »

[9 May 2014 | 2 Comments | ]
The Prescribed Rate of Interest Set to Change

 
The Prescribed Rate of Interest 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.
 
To explain further, mora interest is where payment is due and the rate interest has not been agreed between the parties. In order for a creditor to become entitled to such interest there has to be demand of payment or a due date for payment and from such date the creditor is entitled to charge mora …