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 demand to sign a consent to judgment. This reduces the time and legal costs incurred and it is a common tool of consumer credit providers and their attorneys.

Until this judgment , the Pretoria magistrates court was refusing to grant Section 58 judgments based on , with respect, some very convoluted and ill conceived reasoning in terms of the National Credit Act. This was challenged by, probably the largest user of Section 58 proceedings in the country, African Bank. The National Credit Regulator in terms of its power set out in Section 16(1)(b)(ii) of the National Credit Act, joined the application and while opposing the Pretoria Magistrates interpretation that Section 58 was excluded by the NCA, did seek clarification on the marriage between the provisions  and application S58 and the National Credit Act.

The net result was that the High Court over ruled the Pretoria Magistrates court and held that the NCA did not repeal Section 58, nor render it nugatory with debts that fall under the NCA.

The Court went on to rule on various practical aspects that should be complied with by credit providers wishing to use the Section 58 proceedings, in light of the provisions of Section 129 and Section 130 of the National Credit Act. Those wishing to look at the full judgment can click on the hyperlink on the case to get to the relevant webpage to download the judgment.