Credit battle begins: NCR takes bank to court over common law set-off

Cape Town - The National Credit Regulator (NCR) has gone to court to get legal clarity on the effect of section 124 of the National Credit Act 34 of 2005 on the common law set-off, it said on Tuesday.

The NCR applied for a declaratory order in the North Gauteng High Court against Standard Bank, it said in a statement.

“The typical application of the common law set-off is found in the banking industry where a bank would transfer funds from a consumer’s savings account to settle an outstanding balance on the credit account without the consumer’s authorisation,” said Nthupang Magolego, senior legal advisor at the NCR.