• Three cheers for Thuli

    Where are South Africa’s men and women of honour, asks Mandi Smallhorne.

  • Structure your pension

    An expert explains the ins and outs of different types of retirement annuities.

  • Inside Labour

    Without radical policy change SA's social fabric will continue to fray, says Terry Bell.

Data provided by iNet BFA
Loading...
See More

Concourt upholds credit act ruling

Dec 10 2012 16:18 Sapa

Related Articles

Voluntary debt mediation contravenes act

Tribunal sets aside review of sale of goods

WesBank: Fewer owners in debt review

The Capitec effect

Vehicle finance balloon payments in decline

Debt counsellors go belly up

 
Johannesburg - The Constitutional Court on Monday upheld a judgment by the Western Cape High Court that a provision of the National Credit Act is unconstitutional.

The Constitutional Court found in a majority judgment that section 89(5)(c) of the Act was inconsistent with the right to property.

The section provides that a credit provider loses his rights to reclaim money lent to a consumer if he is not a registered credit provider in terms of the Act.

The Act requires a credit provider to register if more than R500 000 is lent out. If one fails to register as a credit provider, the credit agreement is unlawful and void.

The case arose after Filippus Opperman lent Jacobus Boonzaaier R7m in 2009. Opperman was not registered as a credit provider.

When Boonzaaier admitted he could not repay the debt, Opperman applied for the sequestration of Boonzaaier's estate.

The High Court found the provision denied the credit provider any claim against the consumer for repayment of the money without leaving discretion to a court to decide otherwise.

The National Credit Regulator and the minister of trade and industry both opposed the High Court order.

The majority ruling by the Constitutional Court found that by removing the unregistered credit provider's restitution claim, it deprived the person of property.

The court further held that the deprivation was not a reasonable and justifiable limitation of the right to property as there were less restrictive means to achieve the purpose of the provision.
national credit act
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...