The research and short courses department of the Law Clinic (Jani van Wyk, Charlotte van Sittert and Franciscus Haupt) recently conducted an impact assessment of the Supreme Court of Appeal judgment in Nedbank v National Credit Regulator delivered in March of this year.
The Research and Short Courses Department of the Law Clinic (Jani van Wyk, Charlotte van Sittert and Franciscus Haupt) recently conducted an impact assessment of the Supreme Court of Appeal judgment in Nedbank v National Credit Regulator delivered in March of this year.
The court made two influential decisions.
Firstly, the court declared that the giving of a notice in terms of section 129(1)(a) of the National Credit Act 34 of 2005 in respect of a specific credit agreement where the consumer has defaulted, precluded that agreement from being included under debt review.
Secondly, the court stated that section 103(5) is a statutory expansion of the common law in duplum rule and included not only unpaid arrear interest, but also charges, costs, fees and interest (paid or unpaid) that accumulated after the consumer defaulted on a credit agreement.
This project was commissioned by the National Credit Regulator in order to gauge the effect that this judgment will have on consumers, debt counsellors and credit providers and to recommend courses of action that the NCR needs to take in order to ensure compliance with the judgment. The research team conducted interviews with prominent role players in the credit industry and presented their findings to the NCR on 1 August 2011.
In addition, the research team co-authored the update of the debt counselling training material for the NCR Debt counselling Training Programme which is a compulsory course that all prospective debt counsellors of South Africa must attend and pass before being allowed to register to practice as a debt counsellor. The project to update the study material was done in collaboration with the research and consultancy company RUDO and Business Enterprises at the University of Pretoria.