Debt collection for beginners
Taking legal action: initiating process
Recovering outstanding amounts can be done effectively through various debt collection mechanisms.
Drafting and dispatching a letter of demand has become a...
Tag: credit agreement
The National Credit Act and reckless lending
The National Credit Act, Act 34 of 2005 (‘NCA’).
The provisions that prohibit reckless credit granting form part of the measures that were introduced by the...
The in duplum rule – How far does it go? Is it limited to credit agreements or not?
The in duplum rule has been part of South African law for more than 100 years – translated, in duplum means ‘double the amount’. This common law rule provides that interest on a debt will cease to run where the total amount of arrear interest has accrued to an amount…
Provided By SchoemanLaw Inc
Unlawful credit agreements
The majority of South Africans are using some form of credit or have access to some form of credit, whether by way of credit cards, clothing account credit cards, personal loans, etcetera. The National Credit Act 34 of 2005 (hereinafter referred to as “the NCA”) purports…
Provided By SchoemanLaw Inc
Drafting loan agreements in consideration of the National Credit Act
IMPORTANT CONSIDERATIONS
Mr X wants to finance a law tech start-up started by his son’s friend currently studying computer engineering at the University of Pretoria. Your...
Law firm finance 101 – Tools to limit interest expense on third party funding
It is our recommendation that this article is read in conjunction with an earlier piece published on Taurus Capital’s website, titled, the Interest Tax Shield,...
Consumer alert – Risk of not registering as a credit provider
There has been a bit of confusion over whether a person providing credit in the form of a monetary loan is obliged to register as...
Burial Societies unpacked
Introduction
Burial Societies and Funeral Parlours have an essential role in society. They provide a means of access to funeral cover to those who cannot afford...
“The Debt Intervention Bill” signed into law
The National Credit Amendment Bill (“the Bill”), referred to in the press as the “The Debt Intervention Bill”, was signed into law in August 2019...
Vendor financiers risk right to claim purchase price in the event of a default on payment
There are often instances where a person wishes to purchase shares in a company but does not have the capital to fund all or a...
Is an acknowledgment of debt regulated by the National Credit Act?
The purpose of the National Credit Act, No.34 of 2005 (“NCA”) is to promote a fair and non-discriminatory marketplace for access to consumer credit and...
VAT rate increase: What you need to consider
The Minister of Finance announced in his recent Budget Speech that the VAT rate would be increased from 14% to 15% with effect from 1...
Penalty fees/charges and sectional title bodies corporate
In this article we look at the legality of different kinds of penalties and legal fees imposed by sectional title bodies corporate against defaulting owners...
New credit provider registration threshold set at nil as from 11 November 2016
Under the National Credit Act, credit providers that have a total principal debt owed to them exceeding R 500 000.00, under all outstanding credit agreements...
Credit providers beware – Reinstatement of credit agreement despite acceleration
An agreement constitutes a credit agreement if, as pronounced in the National Credit Act 34 of 2005 (“the NCA”), it provides for a credit facility,...
Is your sale of land in instalments subject to the National Credit Act?
The confusing definition of “instalment sale agreements” in the Act
In terms of the National Credit Act (“the Act”), an instalment agreement is defined as a...
A class of emolument attachment orders declared unconstitutional
In a judgment delivered on 8 July 2015 in the case of The University of Stellenbosch and 15 Others v The Minister of Justice and...
