In the  the previous article on the report by the Debt Review Task Team, the National Credit Regulator, Mr Davel commented that, “We also found many cases where debt counsellors promote the debt review process as a payment holiday, with no realistic intention of effective rehabilitation”.
This is a sentiment that has been experienced by the writer and seen in a recent matter our law firm dealt with where the Debt Counsellor set down the application of debt rearrangment for the 22 November 2010. We check with the clerk of the court in …

We previously reported on the appointment and interim report of the Debt Review Task Team appointed by the National Credit Regulator.
The Task Team has now released a report which has been commented on firstly by the Business Report we it was written that:
“The National Credit Regulator’s Debt Review Task Team admitted on Tuesday it has had heated debates with big banks around the final resolution to delays in the debt review process.
Johan de Ridder, a banker and member of the task team, says the big tussle within the banks is …

We previously reported on the uncertainty and problems created by the National Credit Act “in duplum” ruling in the NCR declaratory order granted by Judge Du Plessis on the 21st August 2009 in the North Gauteng High Court.
The major banks involved in the application shortly thereafter indicated their intention to appeal this aspect of the judgment, which seemed to drastically curtail the rights of credit providers to charge interest on defaulting debt. Now eventually the slow wheels of justice have begun turning on this issue when Judge Du Plessis on the …

The most recent significant case impacting on the National Credit Act is the currently unreported decision in the case of African Bank Limited v Additional Magistrate Myambo NO and Others (34793/2008) [2010] ZAGPPHC 60 (9 July 2010), in which Judge Du Plessis gave another declaratory judgment on various provisions of the NCA, this time in regard to the application of Section 58 of the Magistrates Court.
Section 58 is a provision of the Magistrates Court Act which allows a debtor who has received either a summons or an appropriate letter of …

Gabriel Davel, CEO of the National Credit Regulator, said today that nearly half (45.3%) of the 18.07 million credit-active, consumers on record are struggling to meet their debt obligations. Further analysis shows the growth in the number of accounts falling within the three plus months’ arrears category has risen by just over half a million accounts to 10.16 million in the quarter ended December 2009. It does appear that the rate at which consumers are falling into the impaired record category is slowing.
The number of consumers with impaired records is still increasing, with an increase …

Moneyweb reports that:
ABSA agreed to lend an 81-year-old client R350 000 to help his daughter’s business. Group, the South African bank controlled by Barclays Plc, said it may appeal a charge of “reckless lending” handed down by the Port Elizabeth Magistrate’s Court.
About 20 months ago, ABSA agreed to lend an unidentified 81-year-old client R350 000 to help his daughter’s business, Louis von Zeuner, deputy chief executive of the bank, said. The daughter stood surety and was a guarantor on the loan, he said.
“Now it appears her business didn’t do what was …

Moneyweb reports that:
ABSA agreed to lend an 81-year-old client R350 000 to help his daughter’s business. Group, the South African bank controlled by Barclays Plc, said it may appeal a charge of “reckless lending” handed down by the Port Elizabeth Magistrate’s Court.
About 20 months ago, ABSA agreed to lend an unidentified 81-year-old client R350 000 to help his daughter’s business, Louis von Zeuner, deputy chief executive of the bank, said. The daughter stood surety and was a guarantor on the loan, he said.
“Now it appears her business didn’t do what was …

The National Credit Regulator responded  to the drafting debacle of the National Credit Act, in particular in relation to its debt counselling provisions, by firstly bringing the High Court application for declaratory order. Subsequent to the order being made the National Credit Regulator has been proactive in December 2009 appointing a Debt Counselling Task Team headed up by former advocate and banking ombudsman and consisting of players from both sides of the fence in Peter Setou, Paul Slot,  Johan de Ridder and Rob Easton-Berry.
The mandate of the task team was to:
• Identify the primary causes for the current …

The Department of Trade and Industry has published a draft set of regulations to govern aspects of the debt re-arrangement application to court by both debt counsellors and debtors themselves, as well as applications to court for an order declaring credit agreements reckless agreement in terms of Section 86(7)(c).
A copy of the draft regulations is downloadable at polity.org.za , amongst other and submissions on the draft have to reach the DTI on or before the 25th February 2010.

Previously we had commented on the in duplum rule and its connection to the NCA and also reported on the judgment of Judge du Plessis on the declaratory order brought by the National Credit Regulator which dealt with procedural and other legal issues relating to the debt rearrangement process, but also dealt with the issue of the so-called statutory “in duplum” in terms of Section 103(5) of the National Credit Act.
Now Maureen Marud, a Consumer Editor at Independent Newspapers, reports on IOL that:
“Two of the four major banks are challenging …